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March 2, 2021, 9:00 a.m. EST

Shares of Wrangler jeans parent jump after upbeat guidance

Kontoor Brands Inc. (NYS:KTB) stock jumped nearly 5% in Tuesday premarket trading after the denim company reported fourth-quarter earnings that beat expectations and gave upbeat 2021 guidance. Net income totaled $43.1 million, or 74 cents per share, up from $28.8 million, or 50 cents per share, last year. Adjusted EPS of $1.23 beat the FactSet consensus for 96 cents. Revenue of $660.9 million was up from $652.6 million and ahead of the FactSet consensus for $643.0 million. Digital sales from the company's own sites were up 50%, and sales from digital wholesale sites were up 75%. Wrangler global revenue was up 7% to $448 million, and Lee global revenue was $204 million, up 1%. For 2021, Kontoor expects revenue to increase in the low-double-digit range, and adjusted EPS in the range of $3.50 to $3.60. The FactSet consensus is for revenue of $2.414 billion, suggesting 15.1% growth, and EPS of $3.28. Kontoor stock has rallied 27.4% over the past year, outpacing the benchmark S&P 500 index (S&P:SPX) , which is up 26.3% for the period.

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