Stock Track | Kontoor Brands Plummets 5.43% Despite Raised Outlook as Q3 Revenue Misses Estimates

Stock Track11-03

Shares of Kontoor Brands, Inc. (KTB) plummeted 5.43% in pre-market trading on Monday, despite the company reporting better-than-expected third-quarter earnings and raising its full-year outlook. The sharp decline appears to be driven by the company's revenue miss and concerns about its fourth-quarter guidance.

Kontoor Brands, known for its Wrangler and Lee jeans brands, reported fiscal Q3 adjusted earnings of $1.44 per share, surpassing analysts' expectations of $1.36. However, the company's revenue of $853.2 million fell short of the $855.5 million forecast by analysts. This revenue miss, albeit slight, seems to have rattled investors, overshadowing the earnings beat.

Adding to the market's concerns, Kontoor provided fourth-quarter revenue guidance in the range of $970 million to $980 million, which may be viewed as conservative by some investors. The company also raised its full-year 2025 adjusted EPS outlook to approximately $5.50, up from its previous guidance of $5.45, and now expects revenue to be at the high end of its previously issued range of $3.09 billion to $3.12 billion. Despite this improved outlook, the market's reaction suggests that investors were hoping for even stronger guidance, particularly in light of the current economic uncertainties and competitive retail landscape.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment