Kontoor Brands tops Q1 earnings estimates, raises full-year outlook

Published 06/05/2025, 12:02
Kontoor Brands tops Q1 earnings estimates, raises full-year outlook

Investing.com - Kontoor Brands (NYSE:KTB), Inc reported first-quarter earnings on Tuesday that exceeded analyst expectations, despite a slight dip in revenue.

The company also raised its full-year guidance, citing strong operational performance and the anticipated contribution from its Helly Hansen acquisition.

For the first quarter of 2025, Kontoor Brands reported adjusted earnings per share (EPS) of $1.20, surpassing the analyst consensus of $1.16.

However, revenue for the quarter came in at $622.9 million, slightly below the expected $626.3 million and down 1% YoY (flat on a constant currency basis).

The company’s adjusted gross margin improved significantly, increasing 200 basis points YoY to 47.7%.

Adjusted operating income rose 4% to $96 million, despite including $8 million of incremental acquisition-related stock-based compensation expense.

Looking ahead, Kontoor Brands raised its full-year 2025 outlook. The company now expects revenue to be in the range of $3.06 to $3.09 billion, representing an increase of approximately 17% to 19% YoY.

This outlook includes an estimated 16% benefit from the Helly Hansen acquisition, expected to close in the second quarter.

Adjusted EPS for the full year is now projected to be between $5.40 and $5.50, up from the previous analyst consensus of $5.04.

This guidance represents a 10% to 12% increase compared to the prior year, including an approximate $0.20 benefit from Helly Hansen.

The company’s updated outlook does not include the anticipated impact from recently enacted changes in tariffs, estimated at $50 million on an unmitigated basis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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