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Kontoor Brands
(NYSE:KTB)
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Rating:65Neutral
Price Target:
$91.00
â–²(17.91% Upside)
Action:Reiterated
Date:08/17/26
KTB scores in the mid-60s primarily due to solid profitability and cash generation but elevated leverage and recent TTM revenue/FCF declines. The latest earnings call meaningfully supports the score with raised margin and EPS guidance and strong brand momentum (Wrangler and Helly Hansen), while technicals and valuation are supportive but not decisively strong.
Positive Factors
Wrangler brand strength and market-share gains
Sustained share gains, female-category growth, Western momentum and DTC expansion indicate durable brand relevance. Continued leadership in core bottoms can support resilient demand and improve scale across wholesale and direct channels.
Negative Factors
Elevated leverage limits financial flexibility
Debt remains high for a consumer-facing apparel company, constraining flexibility if demand weakens or refinancing costs rise. Planned debt reduction should help, but balance-sheet risk persists until divestiture proceeds are realized.
Read all positive and negative factors
Positive Factors
Negative Factors
Wrangler brand strength and market-share gains
Sustained share gains, female-category growth, Western momentum and DTC expansion indicate durable brand relevance. Continued leadership in core bottoms can support resilient demand and improve scale across wholesale and direct channels.
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
$4.21B
Dividend Yield2.8%
Average Volume (3M)799.01K
Price to Earnings (P/E)15.6
Beta (1Y)1.23
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. Volume666,907
30 Day Avg. Volume799,008
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$105.43Price Target Upside36.60% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
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 under Wrangler and Lee through (1) wholesale and (2) direct-to-consumer (DTC) channels. Wholesale revenue is generated by supplying products to third-party retailers (e.g., department...
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 | 412.89M | 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
Neutral
77.18
Price Trends
82.40
Negative
77.12
Negative
71.51
Positive
Market Momentum
-1.38
Positive
39.58
Neutral
12.00
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTB, the sentiment is Neutral. The current price of 77.18 is below the 20-day moving average (MA) of 80.11, below the 50-day MA of 82.40, and above the 200-day MA of 71.51, indicating a neutral trend. The MACD of -1.38 indicates Positive momentum. The RSI at 39.58 is Neutral, neither overbought nor oversold. The STOCH value of 12.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.97B | 14.87 | 12.58% | 1.93% | -0.22% | -2.10% | |
67 Neutral | $21.08B | 21.56 | 35.64% | 1.00% | 14.68% | 26.22% | |
65 Neutral | $4.21B | 15.58 | 45.96% | 2.53% | 15.62% | 6.80% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
51 Neutral | $5.37B | 19.20 | 15.95% | 2.11% | -0.16% | 212.77% |
* Consumer Cyclical Sector Average
KTB
Kontoor Brands
75.41
0.32
0.43%
COLM
Columbia Sportswear
57.40
2.84
5.21%
RL
Ralph Lauren
346.90
53.14
18.09%
VFC
VF
13.44
-1.37
-9.24%
Kontoor Brands Corporate Events
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,...
Executive/Board Changes
Kontoor Brands Announces Chief Accounting Officer Leadership Transition
Neutral
Jun 15, 2026
On June 12, 2026, Kontoor Brands announced that S. Denise Sumner will retire as Vice President and Chief Accounting Officer, effective August 28, 2026, after nearly 16 years with the company and its predecessor. She will remain full time in her ro...
Business Operations and StrategyStock BuybackM&A Transactions
Kontoor Brands Sells Lee Business to Authentic Brands
Positive
May 21, 2026
On May 21, 2026, Kontoor Brands announced a definitive agreement to sell its Lee business to Authentic Brands Group in a transaction valued at up to $1 billion, including an initial $750 million consideration and a potential $250 million earnout t...
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.