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Kontoor Brands, Inc. (KTB) Surpasses EPS Estimates but Misses on Revenue

  • Earnings Per Share (EPS) of $1.44, surpassing the estimated EPS of $1.41.
  • Actual revenue of approximately $853.2 million, falling short of the estimated $879.1 million.
  • Key financial ratios indicate KTB's market valuation and financial health, with a price-to-earnings (P/E) ratio of approximately 16.24 and a debt-to-equity ratio of about 3.07.

Kontoor Brands, Inc. (NYSE:KTB) is a well-known apparel company, primarily recognized for its iconic brands, Wrangler and Lee. The company operates in the competitive apparel industry, where it faces rivals like Levi Strauss & Co. and VF Corporation. KTB focuses on delivering high-quality denim and casual apparel, catering to a broad consumer base.

On November 3, 2025, KTB reported its earnings before the market opened, revealing an earnings per share (EPS) of $1.44, surpassing the estimated EPS of $1.41. Despite this positive EPS, the company's actual revenue of approximately $853.2 million fell short of the estimated $879.1 million. This discrepancy was partly due to a shift in the timing of shipments, as highlighted by Scott Baxter, the company's President, CEO, and Chairman.

During the Q3 2025 earnings call, key figures from Kontoor Brands, including Michael Karapetian, Scott Baxter, and Joseph Alkire, engaged with analysts from prominent financial institutions. The call provided a platform to discuss the company's financial performance and strategic direction. Despite the revenue shortfall, the Wrangler brand played a significant role in the quarter's success, contributing to the company's improved gross margins and operational execution.

KTB's financial metrics offer insights into its market valuation and financial health. The company has a price-to-earnings (P/E) ratio of approximately 16.24, indicating how the market values its earnings. Its price-to-sales ratio stands at about 1.54, reflecting investor sentiment towards its revenue. Additionally, KTB's enterprise value to sales ratio is around 2.08, suggesting the market's valuation of the company's total worth relative to its sales.

The company's financial leverage is evident in its debt-to-equity ratio of about 3.07, while its current ratio of approximately 2.18 showcases its ability to cover short-term liabilities with short-term assets. With an earnings yield of 6.16%, KTB offers a return on investment relative to its share price, indicating potential value for investors.