Wrangler parent Kontoor Brands stock jumps after earnings beat, strong guidance

/ / News

Kontoor Brands Inc. shares rose 6% in Thursday premarket trading after the denim company reported third-quarter earnings that beat expectations and gave guidance that exceeds expectations. Net income totaled $60.8 million, or $1.05 per share, up from $14.5 million, or 25 cents per share last year. Adjusted EPS of $1.33 was up 40% from last year and more than doubled the FactSet consensus for 58 cents. Revenue of $583.2 million was down from $638.1 million last year but also ahead of the FactSet consensus for $549.0 million. Kontoor Brands’ portfolio includes Lee and Wrangler jeans. The company ended the quarter with $285 million in cash and equivalents and about $1 billion in long-term debt. Kontoor made additional $100 million in payments towards outstanding borrowings from its revolving credit facility, bringing the total outstanding borrowing to $125 million. Kontoor declared a quarterly dividend of 40 cents per shares payable on Dec. 18 to shareholders of record as of the close of business on Dec. 10. Kontoor expects full-year adjusted EPS of $2.25 to $2.35. The FactSet consensus is for EPS of $1.52. Kontoor stock has slumped 25.6% for the year to date while the S&P 500 index is up 1.3% for the period.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.