Bullish indicating open at $55-$60, IPO prices at $37
NEW YORK -On Tuesday, Kontoor Brands Inc. (NYSE:KTB) reported fourth-quarter earnings that beat analyst expectations.
The company’s stock fell over -2% as 2025 guidance came in below estimates.
The apparel maker, known for brands like Wrangler and Lee, posted adjusted earnings per share of $1.38, topping the consensus forecast of $1.33. Revenue rose 4% YoY to $699 million, slightly ahead of the $696.26 million analysts expected.
However, Kontoor’s outlook for 2025 disappointed investors. The company forecast full-year EPS of $5.20-$5.30, below the $5.37 Wall Street was projecting. Revenue guidance of $2.63-$2.69 billion also fell short of the $2.68 billion consensus estimate.
"Our outlook reflects continued revenue growth, market share gains, gross margin expansion, strong operating earnings and cash generation," said CEO Scott Baxter (NYSE:BAX). He noted the company is "mindful of the uncertain environment" but confident in its ability to drive shareholder returns.
For Q4, Wrangler brand revenue jumped 9% to $503 million, while Lee brand sales declined 6% to $194 million. Gross margin expanded 160 basis points to 44.7% on an adjusted basis.
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