Clothing company Kontoor Brands (NYSE: KTB) will be announcing earnings results tomorrow before market open. Here’s what to expect.
Kontoor Brands met analysts’ revenue expectations last quarter, reporting revenues of $699.3 million, up 4.4% year on year. It was a mixed quarter for the company, with constant currency revenue in line with analysts’ estimates but a miss of analysts’ adjusted operating income estimates.
Is Kontoor Brands a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kontoor Brands’s revenue to be flat year on year at $626.3 million, improving from the 5.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.16 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kontoor Brands has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Kontoor Brands’s peers in the apparel and accessories segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 3.1%, missing analysts’ expectations by 0.8%, and Carter's reported a revenue decline of 4.8%, topping estimates by 0.9%. Levi's traded down 8.2% following the results while Carter's was also down 13.9%.
Read our full analysis of Levi’s results here and Carter’s results here.
There has been positive sentiment among investors in the apparel and accessories segment, with share prices up 8.8% on average over the last month. Kontoor Brands is up 13.1% during the same time and is heading into earnings with an average analyst price target of $71.40 (compared to the current share price of $63.40).
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