Kontoor Brands beats Q2 revenue estimates, raises FY outlook

Kontoor Brands

07/08/2025 12:00

Overview

Kontoor Brands Q2 rev rises 8%, beating analysts' expectations, per LSEG data

Adjusted EPS for Q2 beats consensus, rising 23% yr/yr, per LSEG data

Co raises full-year 2025 outlook, despite higher tariffs impact

Outlook

Kontoor Brands expects full-year 2025 revenue of $3.09 to $3.12 bln

Company projects 2025 adjusted EPS to be approximately $5.45

Kontoor Brands anticipates adjusted operating income of $443 mln for 2025

Company forecasts cash flow from operations to exceed $375 mln in 2025

Result Drivers

HELY HANSEN ACQUISITION - Accounted for half of revenue increase in Q2, with $29 mln in June revenue

WRANGLER GROWTH - Wrangler brand global revenue rose 7% with U.S. revenue up 9% driven by an 8% increase in wholesale and a 16% rise in direct-to-consumer sales

GROSS MARGIN EXPANSION - Adjusted gross margin increased 120 basis points to 46.4% due to Project Jeanius, lower product costs, and a favorable product mix

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$658 mln
$634.90 mln (5 Analysts)
Q2 Adjusted EPS
Beat
$1.21
$0.83 (5 Analysts)
Q2 EPS
$1.32
Q2 Gross Margin
46.3%
Q2 Operating Income
$79 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "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 $85.00, about 33.3% above its August 6 closing price of $56.72

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

Press Release: ID:nBw7wwLS3a

(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.)