GREENSBORO, N.C. - Kontoor Brands Inc. (NYSE: NYSE:KTB), the parent company of Wrangler and Lee, reported a miss in both earnings and revenue for the fourth quarter, leading to a premarket stock decline of 16.42%.
The company posted an adjusted earnings per share (EPS) of $1.28, falling short of the analyst consensus of $1.35. Revenue for the quarter was also below expectations at $670 million, compared to the anticipated $724.62 million.
The company's financial outlook added to investor concerns, with Kontoor Brands providing full-year 2024 EPS guidance in the range of $4.65 to $4.75, which is below the analyst consensus of $5.02. Revenue guidance for FY2024 was set between $2.57 billion and $2.63 billion, trailing the consensus estimate of $2.715 billion.
The midpoint of the EPS guidance range, $4.70, and the midpoint of the revenue guidance range, $2.60 billion, both sit below the respective consensus figures, indicating a cautious outlook from the company.
Scott Baxter (NYSE:BAX), President, Chief Executive Officer & Chair of the Board, commented on the quarter's results, acknowledging the challenges faced while emphasizing the company's commitment to digital growth and attracting a younger consumer base. "We are accelerating our investment in our digital channels to drive brand growth," Baxter stated, highlighting the strategic direction despite the earnings and revenue shortfall.
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