Stock Story -
Clothing company Kontoor Brands (NYSE:KTB) will be reporting results tomorrow before market open. Here's what to look for.
Kontoor Brands beat analysts' revenue expectations by 3.8% last quarter, reporting revenues of $631.2 million, down 5.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Is Kontoor Brands a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Kontoor Brands's revenue to decline 3.7% year on year to $593 million, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.
The majority of analysts covering the company have 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 four times over the last two years.
Looking at Kontoor Brands's peers in the apparel, accessories and luxury goods segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Levi's delivered year-on-year revenue growth of 7.8%, meeting analysts' expectations, and Columbia Sportswear reported a revenue decline of 8.2%, in line with consensus estimates. Levi's traded down 15.7% following the results while Columbia Sportswear was also down 1%.
Read the full analysis of Levi's and Columbia Sportswear's results on StockStory.
There has been positive sentiment among investors in the apparel, accessories and luxury goods segment, with share prices up 11.8% on average over the last month. Kontoor Brands is up 7.4% during the same time and is heading into earnings with an average analyst price target of $74 (compared to the current share price of $69.62).
![What To Expect From Kontoor Brands's (KTB) Q2 Earnings](https://d68-invdn-com.investing.com/content/pic6e14beaee42c1a00586716c938361c27.jpeg)