Kontoor Brands, Inc. (NYSE: KTB), a global lifestyle apparel company, saw its stock plunge 5.42% in pre-market trading on Tuesday following its release of fourth quarter and full year 2024 results. While the company reported robust financial performance, its 2025 outlook fell short of analyst expectations, sparking a selloff.

For the fourth quarter, Kontoor posted revenue of $699.3 million, up 4% year-over-year, driven by growth in its Wrangler brand and direct-to-consumer channel. Adjusted earnings per share (EPS) came in at $1.38, beating analyst estimates and representing a 2% increase compared to the prior year period.

However, the company's 2025 guidance failed to impress investors. Kontoor provided an adjusted EPS outlook range of $5.20 to $5.30, below the FactSet analyst consensus estimate of $5.37. Additionally, the company's revenue guidance range of $2.63 billion to $2.69 billion was slightly below the $2.68 billion analyst forecast.

Scott Baxter, President, Chief Executive Officer, and Chairman of the Board, attributed the disappointing outlook to conservative retailer inventory management and tempered consumer spending expectations. He stated, "The fundamentals of our business remain strong, and the acquisition of Helly Hansen will further enhance our TSR model and provide the opportunity for even stronger value creation moving forward. We are mindful of the uncertain environment and will continue to manage the business conservatively."

Despite the stock's pre-market plunge, Kontoor's fourth quarter and full year 2024 results demonstrated continued market share gains, accelerating business fundamentals, and robust returns for shareholders. The company remains optimistic about its growth prospects, particularly with the acquisition of Helly Hansen expected to close in the second quarter of 2025.