Overview

* Kontoor Brands ( KTB ) 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 ( KTB ) expects full-year 2025 revenue of $3.09 to $3.12 bln

* Company projects 2025 adjusted EPS to be approximately $5.45

* Kontoor Brands ( KTB ) 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/Mis Actual Consensu

s s

Estimate

Q2 Beat $658 mln $634.90

Revenue mln (5

Analysts

)

Q2 Beat $1.21 $0.83 (5

Adjusted Analysts

EPS )

Q2 EPS $1.32

Q2 Gross 46.3%

Margin

Q2 $79 mln

Operatin

g Income

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 ( KTB ) 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:

(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.)