Kontoor Brands (NYSE:KTB) Releases FY 2025 Earnings Guidance

Key Points

• Kontoor Brands updated its FY 2025 earnings guidance to an EPS of $5.45, surpassing the consensus estimate of $5.245, and maintains revenue guidance of $3.1 billion.
• Wells Fargo, UBS Group, and Barclays have raised their price targets for Kontoor Brands, with a consensus target price now set at $87.50 and a rating of "Moderate Buy".
• Kontoor Brands announced a quarterly dividend of $0.52 per share, yielding approximately 3.7% annually, with a payout ratio of 50.98%.

Kontoor Brands (NYSE:KTB - Get Free Report) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share guidance of 5.450-5.450 for the period, compared to the consensus earnings per share estimate of 5.245. The company issued revenue guidance of $3.1 billion-$3.1 billion, compared to the consensus revenue estimate of $3.1 billion. Kontoor Brands also updated its Q3 2025 guidance to 1.350-1.350 EPS.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on KTB. Barclays increased their target price on Kontoor Brands from $86.00 to $91.00 and gave the stock an "overweight" rating in a report on Friday. The Goldman Sachs Group set a $85.00 price target on Kontoor Brands and gave the stock a "buy" rating in a report on Tuesday, June 10th. Wall Street Zen raised Kontoor Brands from a "hold" rating to a "strong-buy" rating in a report on Saturday. Stifel Nicolaus boosted their price target on Kontoor Brands from $72.00 to $73.00 and gave the company a "hold" rating in a report on Friday. Finally, Wells Fargo & Company raised their target price on Kontoor Brands from $85.00 to $90.00 and gave the stock an "overweight" rating in a report on Wednesday, May 14th. One analyst has rated the stock with a hold rating, five have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average target price of $89.67.

Kontoor Brands Stock Down 0.1%

Kontoor Brands stock traded down $0.09 during trading on Monday, hitting $67.51. 497,709 shares of the company were exchanged, compared to its average volume of 735,901. Kontoor Brands has a 52 week low of $50.00 and a 52 week high of $96.80. The company has a current ratio of 2.18, a quick ratio of 0.95 and a debt-to-equity ratio of 2.74. The business's 50 day moving average is $65.07 and its 200 day moving average is $67.83. The company has a market capitalization of $3.75 billion, a P/E ratio of 15.08, a PEG ratio of 1.55 and a beta of 1.11.

Kontoor Brands (NYSE:KTB - Get Free Report) last posted its earnings results on Thursday, August 7th. The company reported $1.21 earnings per share for the quarter, beating analysts' consensus estimates of $0.86 by $0.35. The company had revenue of $658.26 million for the quarter, compared to the consensus estimate of $632.97 million. Kontoor Brands had a return on equity of 68.76% and a net margin of 9.48%. Kontoor Brands's revenue was up 8.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.98 earnings per share. Analysts predict that Kontoor Brands will post 4.82 earnings per share for the current year.

Kontoor Brands Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 19th. Shareholders of record on Tuesday, September 9th will be paid a $0.52 dividend. The ex-dividend date is Tuesday, September 9th. This represents a $2.08 annualized dividend and a dividend yield of 3.1%. Kontoor Brands's dividend payout ratio (DPR) is presently 46.43%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. United Services Automobile Association purchased a new stake in Kontoor Brands in the first quarter worth approximately $205,000. Cetera Investment Advisers lifted its position in Kontoor Brands by 21.1% in the second quarter. Cetera Investment Advisers now owns 6,188 shares of the company's stock worth $408,000 after buying an additional 1,078 shares during the last quarter. Integrated Wealth Concepts LLC increased its stake in shares of Kontoor Brands by 250.8% during the first quarter. Integrated Wealth Concepts LLC now owns 9,388 shares of the company's stock valued at $602,000 after buying an additional 6,712 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Kontoor Brands by 49.3% during the first quarter. AQR Capital Management LLC now owns 14,641 shares of the company's stock worth $939,000 after purchasing an additional 4,836 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Kontoor Brands by 4.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 32,779 shares of the company's stock valued at $2,102,000 after buying an additional 1,432 shares in the last quarter. Institutional investors own 93.06% of the company's stock.

About Kontoor Brands

Kontoor Brands, Inc, a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name.