KTB Earnings Prediction
The chart below shows how KTB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KTB sees a -4.56% change in stock price 10 days leading up to the earnings, and a +3.81% change 10 days following the report. On the earnings day itself, the stock moves by +6.58%. This data can give you a slight idea of what to expect for the next quarter's release.
KTB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
670.19M
2.39%
10.43%
Gross Margin
44.99%
8.49%
-0.55%
Operating Margin
14.98%
14.70%
15.77%
Net Margin
10.53%
15.71%
23.45%
EPS
1.26
20.00%
36.96%
No Data Available
KTB Earnings Analysis
Kontoor Brands, Inc. Common Stock Corporation (KTB.N) Earnings Conference Call
Positive
Global Revenue Increase: 1. Revenue Growth: Kontoor Brands reported a 2% increase in global revenue, exceeding expectations, with Wrangler revenue growing 4% and 5% growth in the US market.
Market Share Expansion: 2. Market Share Gains: Wrangler gained 90 basis points of market share in the US, marking the 10th consecutive quarter of market share gains in its largest market.
Cash Flow Performance: 3. Strong Cash Generation: The company generated significant cash from operations, exceeding $360 million, supporting capital allocation including $40 million in share repurchases and a 4% increase in dividends.
Gross Margin Improvement: 4. Gross Margin Expansion: Adjusted gross margin expanded by 150 basis points to 45%, driven by lower input costs and supply chain efficiencies, with an updated outlook for 45.1% gross margin for the full year.
Earnings Per Share Growth: 5. Increased Earnings Per Share: Adjusted earnings per share rose to $1.37, representing a 12% increase compared to the prior year, with expectations for continued growth in the upcoming quarters.
Negative
International Revenue Challenges: Global revenue increased 2%, but Lee's international revenue decreased 7%, indicating ongoing challenges in the international market.
Global Revenue Decline: Lee's global revenue decreased 3%, reflecting a struggle to return the brand to growth despite some positive trends in the US.
Rising SG&A Expenses: Adjusted SG&A expense rose 5% to $195 million compared to the prior year, driven by increased investments, which may pressure profitability.
Gross Margin Expansion Impact: Despite a gross margin expansion of 150 basis points to 45%, the company anticipates a higher tax rate negatively impacting full-year EPS growth by about 5 percentage points.
EPS Decline Forecast: The fourth quarter EPS is expected to be $1.31, reflecting a decrease of 3%, indicating potential challenges in maintaining profitability.
KTB FAQs
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KTB Earning Call Sentiment
Kontoor Brands, Inc. (KTB) Q3 2024 Earnings Call Transcript
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KTB.N
2.4%Positive
The earnings call highlights several positive factors: a 4% revenue growth, a 12% EPS increase, a 4% dividend hike, and strong cash flow expectations. Although there's a tax rate impact, the optimistic guidance, Project Genius savings, and solid shareholder returns outweigh concerns. The Q&A session revealed strong market confidence in revenue drivers and margin expansion, despite some uncertainties about Project Genius costs. Given the company's market cap, these positive aspects are likely to result in a 2% to 8% stock price increase over the next two weeks.
