Denim company Kontoor Brands stock slips after revenue miss

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Kontoor Brands Inc. stock slipped 2.3% in Thursday premarket trading after the denim company reported a third-quarter revenue miss. Kontoor Brands' portfolio includes the Lee and Wrangler brands, which were spun off from VF Corp. this year and began trading in May. Net income was $14.5 million, or 25 cents per share, down from $71.0 million, or $1.25 per share, last year. Adjusted earnings were 95 cents, beating the FactSet consensus for 88 cents. Revenue of $638.1 million were down from $704.2 million and below the $646.0 million FactSet outlook. The company attributed the revenue decline to an exit from some underperforming geographies, including channels in India, a major retail bankruptcy in the fourth quarter of 2018 and currency headwinds. Sears Holdings Corp. filed for bankruptcy in October 2018. For the year, Kontoor expects revenue to exceed $2.5 billion, in line with the FactSet consensus for revenue of $2.57 billion. The company expects revenue to increase at a low-single-digit compound annual growth rate for 2020 and 2021. Kontoor stock is up 29.2% for the last three months while the S&P 500 index is up 6.7% for the period.