Shares of Kontoor Brands, Inc. (KTB) surged 7.11% in pre-market trading on Thursday following the company's impressive second-quarter earnings report and strengthened full-year outlook. The apparel manufacturer, known for brands like Wrangler and Lee, significantly outperformed analysts' expectations, demonstrating robust growth despite challenging market conditions.

Kontoor Brands reported adjusted earnings per share of $1.33 for the second quarter, handily beating the analyst consensus estimate of $0.83 by 61.02%. This represents a substantial 35.71% increase from the $0.98 per share reported in the same period last year. Revenue for the quarter came in at $658.259 million, surpassing the analyst estimate of $634.173 million by 3.80% and marking an 8.46% year-over-year growth.

Adding to the positive sentiment, Kontoor Brands raised its full-year 2025 guidance. The company now expects annual revenue to be in the range of $3.09 to $3.12 billion, with adjusted earnings per share projected at approximately $5.45. This improved outlook factors in the impact of recently enacted increases in tariffs, including assumptions of a 30% reciprocal tariff on China and 20% on all other sourcing countries except Mexico. Despite these challenges, Kontoor Brands' strong performance and optimistic forecast have clearly resonated with investors, driving the significant pre-market stock price increase.