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 ( KTB ) 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 ( KTB ) 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/Mis Actual Consensu

s s

Estimate

Q3 Miss $853 mln $855.83

Revenue mln (7

Analysts

)

Q3 EPS $0.66

Q3 Gross 41.30%

Margin

Q3 $64 mln

Operatin

g Income

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 ( KTB ) 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:

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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.)