Kontoor Brands 2025 Q3 Earnings Revenue Surges 27.3% Despite 47.6% Net Income Drop

Kontoor Brands (KTB) reported fiscal 2025 Q3 earnings on Nov 4, 2025, with revenue surging 27.3% to $853.22 million, surpassing estimates. However, EPS declined 48.0% to $0.66, and net income fell 47.6% to $36.94 million. The company raised its full-year adjusted EPS guidance to $5.50, reflecting stronger performance and operational improvements.

Revenue

The revenue surge was driven by the Wrangler segment, which contributed $471.23 million, followed by Lee with $186.74 million and Helly Hansen with $185.93 million. The "Other" segment accounted for $9.31 million, rounding out the total.

Earnings/Net Income

Despite robust revenue growth, the substantial decline in EPS and net income underscores challenges in maintaining profitability amid strategic initiatives and market dynamics.

Post-Earnings Price Action Review

Following the earnings report, Kontoor Brands' stock edged up 1.66% in the latest trading day but tumbled 10.92% during the most recent full trading week and 9.90% month-to-date. Analysts and investors remain cautious, with Stifel and UBS adjusting price targets based on the company’s performance and future outlook.

CEO Commentary

CEO Scott Baxter highlighted, “While a shift in shipment timing impacted revenue growth, Wrangler drove broad-based gains, Helly Hansen delivered better-than-expected results, and Lee’s market health improved. We are raising full-year guidance based on our stronger performance and momentum.”

Guidance

Kontoor Brands raised full-year 2025 adjusted EPS to $5.50 from $5.45, with revenue projected at $3.09–$3.12 billion. Helly Hansen is expected to contribute $460 million to 2025 revenue, up from $455 million. The company anticipates $185 million in voluntary debt repayments in Q4, reflecting confidence in cash generation.

Additional News

Stifel raised Kontoor’s price target to $75 from $73, citing Helly Hansen’s progress, while UBS lifted its target to $118 from $114, emphasizing long-term EPS growth potential. The company also announced a 2% dividend increase to $0.53 per share and $215 million remaining in its share repurchase authorization. Analysts remain divided, with a “Buy” consensus and a median 12-month price target of $93.

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