Jeans maker Kontoor misses Q3 revenue estimates, raises outlook

Kontoor Brands

03/11/2025 11:58

Overview

Kontoor Q3 revenue up 27% yr/yr to $853 mln, missing analyst expectations

Adjusted EPS for Q3 rises 5% to $1.44

Company raises full-year 2025 outlook, expects revenue at high end of range

Outlook

Kontoor Brands raises full-year revenue outlook to high end of $3.09-$3.12 bln range

Company expects full-year adjusted EPS of approximately $5.50, up from $5.45

Kontoor Brands anticipates full-year cash flow from operations to approximate $400 mln

Result Drivers

BRAND PORTFOLIO STRENGTH - Kontoor attributes Q3 performance to strong brand portfolio, with Wrangler and Helly Hansen driving growth

GROSS MARGIN EXPANSION - Adjusted gross margin increased due to strategic pricing, product mix, and Project Jeanius benefits

SHIPMENT TIMING SHIFT - Revenue growth impacted by shift in shipment timing from Q3 to Q4

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$853 mln
$855.83 mln (7 Analysts)
Q3 EPS
$0.66
Q3 Gross Margin
41.30%
Q3 Operating Income
$64 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the apparel & accessories peer group is "buy"

Wall Street's median 12-month price target for Kontoor Brands Inc is $93.00, about 13% above its October 31 closing price of $80.92

The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nBw2S4VKVa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)