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Here's What to Expect From Kontoor Brands (KTB) in Q2 Earnings

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Kontoor Brands, Inc. (KTB - Free Report) is set to report second-quarter 2023 earnings on Aug 3 before market open. The bottom line of this global lifestyle apparel company is expected to have decreased year over year. The Zacks Consensus Estimate of earnings of 66 cents per share for the second quarter has been stable in the past 30 days. The figure shows a decline of 39.5% from earnings of $1.09 per share in the year-ago period.

The consensus estimate for quarterly revenues stands at $625.5 million, indicating a rise of 1.9% from the prior-year reported figure.

This Greensboro, NC-based company has a trailing four-quarter earnings surprise of 8.6%, on average. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by a margin of 1.8%.

Key Things to Note

Kontoor Brands remains focused on boosting growth at its direct-to-consumer channels and enhancing its footprint across the international markets. The company has been making strategic investments in talent, demand creation and innovation to aid growth. Its brands have also been performing well. The Zacks Consensus Estimate for the company’s Lee and Wrangler brands are currently pegged at $201 million and $422 million, respectively. These estimates show corresponding increase of 2.6% and 1% year over year.

However, the company’s bottom-line results are likely to have shown the impacts of a tough operating backdrop, including inflationary pressures. In fact, inflationary pressures on input costs have been concerning. In addition, currency headwinds remain deterrents. These weaknesses, coupled with any deleverage in selling, general and administrative expenses, are expected to have hurt Kontoor Brands’ earnings performance in the quarter under review.

What Does the Zacks Model Unveil?

Our proven model doesn’t conclusively predict an earnings beat for Kontoor Brands this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Kontoor Brands, Inc. Price and EPS Surprise

Kontoor Brands, Inc. Price and EPS Surprise

Kontoor Brands, Inc. price-eps-surprise | Kontoor Brands, Inc. Quote

Kontoor Brands has an Earnings ESP of 0.00% and a Zacks Rank of 3.

Stocks With the Favorable Combination

Here are some companies, which according to our model, have the right combination of elements to beat on earnings this season:

Marriott International (MAR - Free Report) currently has an Earnings ESP of +8.44% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

MAR is likely to register top and bottom-line growth when it reports second-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.1 billion, suggesting 13.3% growth from the figure reported in the prior-year quarter.

The consensus mark for Marriott’s second-quarter earnings is pegged at $2.19 per share, suggesting year-over-year growth of 21.7%. The consensus mark has increased a penny in the past 30 days. MAR has a trailing four-quarter earnings surprise of 8%, on average.

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.03% and a Zacks Rank of 2. LULU is likely to register top-line improvement when it reports second-quarter fiscal 2023 numbers.

The Zacks Consensus Estimate for lululemon athletica’s quarterly revenues is pegged at $2.20 billion, calling for growth of 15.9% from the prior-year quarter’s reported figure. The consensus mark for the quarterly earnings per share is $2.52, which suggests a 14.6% increase from the figure reported in the year-ago fiscal quarter. LULU has a trailing four-quarter earnings surprise of 9.9%, on average.

PVH Corp (PVH - Free Report) currently has an Earnings ESP of +3.56% and a Zacks Rank of 3. PVH is likely to register top-line growth when it reports second-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.20 million, suggesting a 2.8% rise from the figure reported in the prior-year quarter.

The consensus mark for PVH Corp’s second-quarter earnings is pegged at $1.75 per share, suggesting a 15.9% decline from earnings of $2.08 per share reported in the year-ago quarter. The consensus mark has remained unchanged in the past 30 days. PVH has a trailing four-quarter earnings surprise of 20.4%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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