Dive Brief:
- Kontoor Brands, parent company of Lee and Wrangler, named Tom Waldron chief operating officer, according to a Tuesday press release.
- Waldron was previously Kontoor’s executive vice president, co-chief operating officer and global brand president of Wrangler, per his LinkedIn. Christopher Waldeck, previously Kontoor’s EVP, co-COO and global brand president for the Lee brand, is stepping down from his role, but will stay with the company until June “in order to ensure a smooth transition to the new operating structure,” per the company.
- In the announcement, CEO Scott Baxter said the company is working to advance its operating model “to simplify our organization and increase speed and efficiency.” Baxter said Waldron’s appointment was the next step in that process, which the company called a “multi-year transformation initiative.”
Dive Insight:
In its quarterly earnings report earlier this month, Kontoor Brands announced its Project Jeanius initiative, which the company said is focused on “enhancing and optimizing the supply chain, reducing operating complexity and integrating the business across global shared services.” The initiative is meant to generate between $50 million and $100 million in combined profit improvement and savings, the company said at the time.
As COO, Waldron will be responsible for both the Wrangler and Lee brands globally and will oversee the company’s supply chain operations. Waldron previously worked in VF Corp.’s jeanswear business beginning in 2008. That segment separated from VF and became Kontoor Brands in 2019.
The company also promoted Jenni Broyles, previously senior vice president of Wrangler, to executive vice president and global brands president for Wrangler and Lee. It also promoted Ezio Garciamendez, previously senior vice president and chief supply chain officer, to executive vice president and chief supply chain officer. Both Broyles and Garciamendez will report to Waldron.
In Q4, Kontoor’s revenue fell 8% to $670 million, and both the Wrangler and Lee brands experienced decreased revenue, falling 10% and 7%, respectively.
The company expects the Project Jeanius initiative to show growth beginning in Q4, “with more significant benefits expected in 2025 and 2026.”
Despite this, the company expects 2024 revenue in the range of $2.57 billion to $2.63 billion, which would be either a decrease of 1% or an increase of 1% over 2023 results. It noted that this outlook doesn’t include the anticipated impact of the Project Jeanius initiative.
