Why Wrangler And Lee Owner Kontoor Brands Shares Are Diving Today
Portfolio Pulse from Nabaparna Bhattacharya
Kontoor Brands, Inc. (NYSE:KTB) shares fell after reporting Q4 revenues of $669.80 million, missing analyst expectations of $726.905 million, and an 8% revenue decrease primarily due to U.S. retailer inventory management. Adjusted EPS was $1.35, below the $1.37 consensus. Despite a gross margin increase, the company's FY24 revenue and adjusted EPS outlooks are below estimates. Kontoor has initiated Project Jeanius for growth and declared a quarterly dividend of $0.50 per share.
February 28, 2024 | 3:36 pm
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Kontoor Brands shares fell due to Q4 revenue and EPS misses, and a lower FY24 outlook despite a gross margin increase and a new growth initiative, Project Jeanius.
The stock price decline is directly related to the reported revenue and EPS misses for Q4, as well as the lower-than-expected FY24 revenue and EPS outlooks. Despite positive notes like the gross margin increase and the launch of Project Jeanius, the immediate financial figures weigh heavily on investor sentiment, leading to a negative short-term impact.
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IMPORTANCE 90
RELEVANCE 100