NYSE$KTB
Kontoor Brands Inc. · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
Kontoor Brands reported a revenue increase of 2 percent, driven by growth in global direct-to-consumer and U.S. wholesale, alongside a significant decrease in inventory and share repurchases.
Kontoor Brands reported strong Q3 2024 results, exceeding expectations with revenue growth and improved profitability. The company is raising its full-year outlook, driven by better-than-expected third-quarter results, stronger profitability and cash generation.
- Revenue increased by 2 percent compared to the prior year, reaching $670 million.
- Adjusted EPS increased 12 percent compared to the prior year, reaching $1.37.
- Inventory decreased 24 percent compared to the prior year.
- The company repurchased $40 million of shares.
Headline financials
Revenue & EPS history
Kontoor Brands · Revenue · Quarterly
$670M
Revenue by segment
Kontoor Brands · $613M total across 3 segments · Q1 2026
- Wrangler$436M—71.1%
- Helly Hansen$165M—27.0%
- Other$12M—2.0%
Forward guidance
Kontoor Brands is raising its full year outlook driven by better-than-expected third quarter results, stronger profitability and cash generation.
Tailwinds
- Revenue is now expected to be $2.60 billion, including fourth quarter revenue of approximately $695 million, reflecting growth of approximately 4 percent.
- Adjusted gross margin is now expected to be 45.1 percent, representing an increase of 260 basis points compared to adjusted gross margin in the prior year, excluding the out-of-period duty expense in that period.
- Adjusted SG&A is expected to increase 4 percent compared to adjusted SG&A in the prior year.
- Adjusted operating income is expected to be $385 million, reflecting an increase of 11 percent compared to adjusted operating income in the prior year, excluding the out-of-period duty expense in that period.
- Adjusted EPS is now expected to be $4.83, including an incremental $0.08 impact from supply chain and inventory management actions compared to the prior outlook.
Headwinds
- The Company continues to expect market share gains, growth from channel and category expansion, and expanded distribution to be offset by conservative retailer inventory management and macroeconomic pressures on consumer spending around the globe.
- Full year 2024 adjusted EPS includes an approximate 5-percentage point headwind from a higher tax rate, including an approximate 25-percentage point headwind in the fourth quarter.
- Macroeconomic conditions, including elevated interest rates, inflation, recessionary concerns and fluctuating foreign currency exchange rates, as well as continuing global supply chain issues and geopolitical events, continue to adversely impact global economic conditions
- The level of consumer demand for apparel
- The Company’s ability to gauge consumer preferences and product trends, and to respond to constantly changing markets
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 19 quarterly earnings reports · overlaid with Q3 2024
+1.3%
Avg return
Earnings day
+1.4%
Avg return
5 days after
+4.6%
Avg return
30 days after
58%
19 / 33 earnings
Positive
+18.6%
Q4 2025
Best reaction
-17.3%
Q4 2017
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -2.4% | -1.9% | +21.2% | |
| Q4 2025 | +18.6% | +17.7% | +6.5% | |
| Q3 2025 | -9.4% | -10.8% | -3.3% | |
| Q2 2025 | +12.4% | +24.0% | +41.5% | |
| Q1 2025 | +1.5% | +8.0% | +7.3% | |
| Q4 2024 | -13.5% | +0.5% | -25.7% | |
| Q3 2024 | +6.6% | +10.7% | +19.9% | |
| Q2 2024 | -1.5% | -2.2% | +6.7% | |
| Q1 2024 | +5.6% | +9.0% | +18.0% | |
| Q4 2023 | -6.8% | -7.8% | -5.0% | |
| Q3 2023 | +6.3% | +9.7% | +19.2% | |
| Q2 2023 | +16.6% | +16.3% | +13.7% | |
| Q1 2023 | -7.9% | -9.8% | -9.4% | |
| Q4 2022 | +18.5% | +21.7% | +9.1% | |
| Q3 2022 | +10.8% | +9.6% | +30.7% | |
| Q2 2022 | +2.1% | -1.0% | -3.0% | |
| Q1 2022 | +2.9% | +0.0% | -2.2% | |
| Q4 2021 | -3.0% | -12.7% | -16.5% | |
| Q3 2021 | +1.5% | +5.4% | -5.2% | |
| Q2 2021 | -0.7% | -2.0% | -6.4% | |
| Q1 2021 | +0.9% | -0.7% | -1.3% | |
| Q3 2020 | +5.3% | +14.4% | +38.2% | |
| Q2 2020 | -2.1% | +4.0% | +13.7% | |
| Q1 2020 | -8.1% | -20.8% | +16.2% | |
| Q4 2017 | -17.3% | -18.0% | -37.1% | |
| Q4 2019 | -3.3% | -6.6% | -60.1% | |
| Q3 2018 | +1.0% | -0.3% | +8.5% | |
| Q3 2019 | -5.8% | -5.7% | +0.6% | |
| Q2 2018 | -4.7% | +0.8% | +11.6% | |
| Q2 2019 | +16.0% | +9.1% | +21.5% | |
| Q1 2019 | +0.5% | -4.6% | +7.7% | |
| Q4 2018 | +0.5% | -4.6% | +7.7% | |
| Q1 2018 | +0.5% | -4.6% | +7.7% |
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