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Kontoor Brands
(NYSE:KTB)
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Rating:70Outperform
Price Target:
$83.00
â–²(7.54% Upside)
Action:Upgraded
Date:10/22/26
KTB scores well overall driven by an upbeat earnings outlook (raised margin/EPS guidance and a clear plan for buybacks and leverage reduction) and constructive technical momentum. The score is capped by fundamental risks including elevated leverage, recent TTM declines in revenue and free cash flow, and near-term execution uncertainty from Lee divestiture stranded costs and higher SG&A.
Positive Factors
Wrangler brand momentum
Sustained market-share gains across men’s and women’s bottoms indicate durable brand relevance and product execution. Continued Wrangler growth, including strong female, Western, and DTC performance, can improve channel strength and support more consistent revenue expansion.
Negative Factors
Elevated leverage
Elevated leverage reduces financial flexibility for a consumer-facing apparel company and increases sensitivity to weaker demand or higher financing costs. Planned debt repayment may improve the profile, but existing obligations can constrain capital allocation until those actions are completed.
Read all positive and negative factors
Positive Factors
Negative Factors
Wrangler brand momentum
Sustained market-share gains across men’s and women’s bottoms indicate durable brand relevance and product execution. Continued Wrangler growth, including strong female, Western, and DTC performance, can improve channel strength and support more consistent revenue expansion.
Read all positive factors
Kontoor Brands Key Performance Indicators (KPIs)
Any
Revenue by Segment
Shows how sales are split across Kontoor’s brands and product lines (for example Wrangler, Lee, and workwear versus casual apparel), revealing which segments are fueling growth or lagging. Helps investors judge whether the company’s momentum is broad-based or concentrated in a single brand, and whether product mix changes could affect future performance.
Shows how sales are split across Kontoor’s brands and product lines (for example Wrangler, Lee, and workwear versus casual apparel), revealing which segments are fueling growth or lagging. Helps investors judge whether the company’s momentum is broad-based or concentrated in a single brand, and whether product mix changes could affect future performance.
Data provided by:
The Fly
The FlyKontoor Brands (KTB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.10B
Dividend Yield2.82%
Average Volume (3M)757.87K
Price to Earnings (P/E)15.5
Beta (1Y)1.19
Revenue Growth15.62%
EPS Growth6.80%
CountryUS
Employees10,600
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)4.84
Shares Outstanding54,653,620
10 Day Avg. Volume766,347
30 Day Avg. Volume757,868
Financial Highlights & Ratios
PEG Ratio-2.07
Price to Book (P/B)6.04
Price to Sales (P/S)1.08
P/FCF Ratio6.02
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue1.93
Enterprise Value/Gross Profit3.89
Enterprise Value/Ebitda14.06
Forecast
1Y Price Target
$103.38Price Target Upside33.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)5.29
Revenue Forecast (FY)$2.70B
Kontoor Brands Business Overview & Revenue Model
Company Description
Kontoor Brands, Inc. is a lifestyle clothing company that specializes in the creation, production, sourcing, promotion, and sale of denim, various garments, and related accessories. Their well-known brands include Wrangler, Lee, and Rock & Republi...
How the Company Makes Money
Kontoor Brands makes money primarily by selling branded apparel (with a strong emphasis on denim) under the Wrangler and Lee names through a mix of wholesale and direct-to-consumer (DTC) channels.
1) Wholesale revenue: A significant portion of sa...
Kontoor Brands Earnings Call Summary
Earnings Call Date:Aug 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 02, 2027
Earnings Call Sentiment Positive
The call presents a constructive and optimistic picture: strong top-line and margin performance in the first half, raised full-year margin and EPS guidance, Helly Hansen performing ahead of acquisition plan and showing early profitability improvements, Wrangler showing market-share gains and DTC momentum, and Project Genius delivering material savings. The primary negatives are transitional and execution risks tied to the Lee divestiture reclassification (~$0.55 in stranded costs), elevated SG&A as the company invests behind growth, trade/tariff uncertainty, and short-term wholesale/retail inventory caution. Management provided clear mitigation plans (cost actions, ASR, debt paydown) and reiterated confidence in achieving targets within 12–18 months.Positive Updates
Strong First Half Revenue and EPS
Revenue of $1.2 billion in the first half, at the high end of prior outlook, representing a 31% increase versus prior year; adjusted EPS of $2.12 in the first half, up 36% versus prior year.
Negative Updates
Reclassification of Lee-Related Costs
Approximately $0.55 of expenses previously allocated to Lee were reclassified to continuing operations, creating a short-term cost overhang that management expects to mitigate over a 12–18 month period via restructuring and other actions; temporary uncertainty around exact transition timing and TSA support.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong First Half Revenue and EPS
Revenue of $1.2 billion in the first half, at the high end of prior outlook, representing a 31% increase versus prior year; adjusted EPS of $2.12 in the first half, up 36% versus prior year.
Read all positive updates
Company Guidance
Kontoor reaffirmed full-year revenue of $2.66–$2.71 billion (H2 $1.46–$1.51 billion) with mid‑single‑digit H2 growth for both Wrangler and Helly Hansen, and raised full‑year adjusted gross margin to 49.8%–50.0% (up ~330–350 bps YoY), while adjusted SG&A is expected to increase ~23% YoY and include ~$25 million of incremental brand‑building investments versus prior outlook. Adjusted operating income is now guided to $413–$420 million (up ~15%–17% YoY) and adjusted EPS to $5.25–$5.35 (up ~27%–29% YoY, including ~$0.36 of incremental investments and ~ $0.55 of unmitigated expenses formerly allocated to Lee); the effective tax rate is expected to be ~20% and diluted shares ~55.5 million (outlook excludes future repurchases). Cash flow and capital deployment targets include ~ $450 million of operating cash, voluntary term‑loan repayments of $225 million, a goal to return to <1.5x net leverage by YE2026, intention to fund a $400 million accelerated share repurchase with most Lee proceeds, and to return >$900 million of capital in 2026 via repurchases, dividends and debt paydown. Balance‑sheet and other metrics: inventory $526 million (down 3% YoY), net debt $1.1 billion, cash $58 million, $500 million revolver undrawn, YTD repurchases $75 million (including $50 million this quarter) with $700 million remaining authorization, quarterly dividend $0.53/share, assumed 15% reciprocal tariff rate for H2 2026, and recognition of a $54 million IEPA receivable with ~$23 million refunded to date.Kontoor Brands Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
48
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.07B | 3.15B | 2.61B | 2.61B | 2.63B | 2.48B |
| Gross Profit | 1.53B | 1.47B | 1.16B | 1.09B | 1.13B | 1.11B |
| EBITDA | 422.00M | 412.30M | 384.88M | 350.35M | 391.18M | 320.10M |
| Net Income | 267.94M | 227.45M | 245.80M | 230.99M | 245.49M | 195.42M |
Balance Sheet | ||||||
| Total Assets | 2.67B | 2.58B | 1.65B | 1.65B | 1.58B | 1.53B |
| Cash, Cash Equivalents and Short-Term Investments | 58.46M | 108.44M | 334.07M | 215.05M | 59.18M | 185.32M |
| Total Debt | 1.27B | 1.29B | 791.16M | 841.68M | 851.30M | 848.75M |
| Total Liabilities | 2.05B | 2.02B | 1.25B | 1.27B | 1.33B | 1.38B |
| Stockholders Equity | 618.54M | 564.87M | 400.06M | 371.91M | 250.76M | 148.14M |
Cash Flow | ||||||
| Free Cash Flow | 423.19M | 566.72M | 346.11M | 319.17M | 55.19M | 246.99M |
| Operating Cash Flow | 446.13M | 587.77M | 368.23M | 356.55M | 83.58M | 283.86M |
| Investing Cash Flow | -15.80M | -898.76M | -22.26M | -39.14M | -30.12M | -39.37M |
| Financing Cash Flow | -458.20M | 246.80M | -240.35M | -155.70M | -170.91M | -304.07M |
Kontoor Brands Technical Analysis
Positive
77.18
Price Trends
71.28
Positive
75.79
Positive
71.30
Positive
Market Momentum
1.65
Negative
72.46
Negative
91.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTB, the sentiment is Positive. The current price of 77.18 is above the 20-day moving average (MA) of 68.20, above the 50-day MA of 71.28, and above the 200-day MA of 71.30, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 72.46 is Negative, neither overbought nor oversold. The STOCH value of 91.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KTB.
Kontoor Brands Risk Analysis
Kontoor Brands disclosed 44 risk factors in its most recent earnings report. Kontoor Brands reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Kontoor Brands Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $22.66B | 23.66 | 35.64% | 1.00% | 14.68% | 26.22% | |
72 Outperform | $1.22B | 8.86 | 7.53% | 1.41% | -8.74% | -22.98% | |
70 Outperform | $4.10B | 15.51 | 45.96% | 2.82% | 15.62% | 6.80% | |
65 Neutral | $8.00B | 13.77 | 25.72% | 2.87% | 4.97% | 25.92% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $3.99B | -23.47 | -3.49% | 0.18% | 1.64% | -140.84% | |
51 Neutral | $6.74B | 24.50 | 15.95% | 2.10% | -0.16% | 212.77% |
* Consumer Cyclical Sector Average
KTB
Kontoor Brands
77.78
-5.69
-6.82%
GIII
G-III Apparel Group
29.78
1.72
6.13%
PVH
PVH
84.26
-2.23
-2.58%
RL
Ralph Lauren
381.95
49.19
14.78%
VFC
VF
17.48
1.94
12.51%
LEVI
Levi Strauss & Co
21.36
0.59
2.82%
Kontoor Brands Corporate Events
Business Operations and StrategyDividends
Kontoor Brands Announces Increased Quarterly Dividend Payout
Positive
Oct 22, 2026
On October 22, 2026, Kontoor Brands, Inc. announced that its Board of Directors had declared a regular quarterly cash dividend of $0.54 per share, representing a 2 percent increase from the prior payout. The dividend is scheduled to be paid on Dec...
Business Operations and StrategyExecutive/Board Changes
Kontoor Brands Adds Seasoned Leaders to Expanded Board
Positive
Sep 24, 2026
On September 23, 2026, Kontoor Brands expanded its board of directors from seven to nine members, electing former PepsiCo chief financial officer Jamie Caulfield and Wingstop president and chief executive officer Michael Skipworth as new directors...
Business Operations and StrategyFinancial Disclosures
Kontoor Brands Outlines Global Growth Strategy for Helly Hansen
Positive
Sep 2, 2026
On September 2, 2026, Kontoor Brands used its Helly Hansen Investor Day in Oslo to unveil a long-term growth plan aimed at transforming Helly Hansen from a specialist European label into a leading global premium technical brand. The strategy cente...
Business Operations and StrategyExecutive/Board Changes
Kontoor Brands Elevates Alkire to President and CFO
Positive
Aug 12, 2026
On August 12, 2026, Kontoor Brands, Inc. announced that Joseph A. Alkire, previously Executive Vice President, Chief Financial Officer and Global Head of Operations, was appointed President and Chief Financial Officer, while Scott H. Baxter would ...
Business Operations and StrategyExecutive/Board ChangesDividends
Kontoor Brands Declares Quarterly Dividend, Signals Ongoing Returns
Positive
Jul 24, 2026
On July 22, 2026, Kontoor Brands expanded its Board of Directors from six to seven members and appointed former executive Thomas E. (Tom) Waldron as a director, effective immediately, with his term running through the 2027 annual meeting. Waldron,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.