Shares of Kontoor Brands Inc. KTB jumped 7.6% in premarket trading Tuesday, after the Wrangler and Lee jeans parent fourth-quarter profit and revenue that beat expectations and provided an upbeat full-year outlook. Net income rose to $51.6 million, or 91 cents a share, from $43.9 million, or 75 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 88 cents beat the FactSet consensus of 67 cents. Revenue grew 7.4% to $731.6 million, above the FactSet consensus of $667.6 million, as strength in digital and wholesale offset a decrease in non-U.S. wholesale, which was hurt by COVID-related lockdowns and restrictions in China. For 2023, the company expects EPS of $4.55 to $4.75, which is above the FactSet consensus of $4.36, and expects revenue growth in the lost-single digit percentage range, while the current FactSet revenue consensus of $2.58 billion implies a decline of 1.8%. The stock has slipped 1.1% over the past three months through Monday, while the S&P 500 SPX has gained 0.5%.
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