Result drivers
- Helly Hansen acquisition - Helly Hansen contributed $114 mln in Q2 revenue, exceeding expectations and driving overall growth
- Wrangler segment - Wrangler delivered diversified growth led by female, direct-to-consumer and international, with exceptional profitability and cash generation
- Gross margin expansion - Adjusted gross margin rose 710 basis points, attributed to Project Jeanius, Helly Hansen acquisition, and favorable channel mix, product mix and pricing
Key details and analyst coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|
| Q2 Revenue | Miss | $584.29 mln | $605.72 mln (9 Analysts) |
| Q2 Adjusted EPS | Beat | $1.06 | $1.04 (9 Analysts) |
| Q2 Gross Margin | | 56.20% | |
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
- The average consensus recommendation for the apparel & accessories peer group is "buy"
- Wall Street's median 12-month price target for Kontoor Brands, Inc. is $96.00, about 28.1% above its August 11 closing price of $74.96
- The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago
Quarterly results and stock buyback
KTB•
