Kontoor Brands (KTB) AI Stock Analysis

• Market Cap: $3.89B
• Dividend Yield: 2.94%
• Average Volume (3M): 796.49K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.02
• Revenue Growth: 3.47%
• EPS Growth: 5.86%
• Country: US
• Employees: 13,200
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.21
• Shares Outstanding: 55,574,234
• 10 Day Avg. Volume: 1,178,457
• 30 Day Avg. Volume: 796,485
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 1.96
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: 13.75
• 1Y Price Target: $85.33
• Price Target Upside: 21.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $75.00 ▲(7.19% Upside)

Kontoor Brands' strong earnings performance and strategic initiatives are significant positives, supported by a solid dividend yield. However, technical indicators suggest caution, and leverage risks remain a concern. The company's ability to manage these risks will be crucial for future performance.

Positive Factors

Brand Expansion

The acquisition of Helly Hansen is expected to boost Kontoor Brands' international presence and improve financial metrics.

Debt Management

Kontoor Brands plans to pay down debt using free cash flow, indicating financial stability and strategic management.

Earnings Growth

KTB delivered a robust performance with improving core growth and greater visibility into cost pressures.

Negative Factors

Financial Guidance

Kontoor Brands' official FY EPS guide is expected to come down due to existing headwinds.

Growth Challenges

Slower-than-expected synergies from Helly Hansen and weaker organic growth could result in less favorable financial outcomes for Kontoor Brands.

Tariff Impact

Tariffs create a material headwind to FY EPS for Kontoor Brands.

Kontoor Brands Business Overview & Revenue Model

Company Description

Kontoor Brands, Inc. is a global leader in lifestyle apparel, primarily focused on the denim and casual wear sectors. Established as a spin-off from VF Corporation, Kontoor Brands operates through its iconic brands, including Wrangler and Lee, which are known for their quality denim products. The company designs, markets, and sells a wide range of clothing and accessories, catering to diverse consumer segments worldwide.

How the Company Makes Money

Kontoor Brands generates revenue through the direct sale of its apparel products, primarily denim jeans, tops, and outerwear, across multiple distribution channels including wholesale, retail, and e-commerce. The company sells its products to a wide range of retailers, both department stores and specialty shops, and also operates its own branded retail stores and online platforms. Key revenue streams include seasonal collections, collaborations with other brands and designers, and licensing agreements. Kontoor Brands benefits from strategic partnerships with various retailers and online platforms, enhancing its market reach and driving sales. Additionally, the company capitalizes on brand loyalty and a strong heritage in denim to maintain a competitive edge in the apparel market.

Kontoor Brands Financial Statement Overview

Summary

Kontoor Brands shows strong profitability and effective cash flow management, with a consistent gross profit margin and positive free cash flow growth. However, revenue growth has stagnated, and the high debt-to-equity ratio suggests leverage risk.

Income Statement

Kontoor Brands shows strong profitability with a consistent gross profit margin around 45% over the years. The net profit margin has been stable, reflecting effective cost management. However, revenue growth has stagnated, with a slight decline in the TTM period compared to previous years, indicating potential market challenges or saturation.

Balance Sheet

The company's debt-to-equity ratio is relatively high, suggesting leverage risk, but there has been improvement in equity levels over recent periods. Return on equity is strong due to solid net income figures, enhancing investor confidence. However, the equity ratio indicates a moderate level of asset financing through equity.

Cash Flow

Kontoor Brands has demonstrated positive free cash flow growth, supporting business operations and potential reinvestment opportunities. The ratio of operating cash flow to net income is favorable, ensuring operational efficiency. However, the free cash flow to net income ratio indicates room for improvement in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.60B	2.61B	2.61B	2.63B	2.48B	2.10B
Gross Profit	1.17B	1.16B	1.09B	1.13B	1.11B	863.69M
EBITDA	371.13M	342.29M	350.35M	407.48M	320.57M	183.77M
Net Income	229.18M	245.80M	230.99M	245.49M	195.42M	67.92M
Balance Sheet
Total Assets	1.68B	1.65B	1.65B	1.58B	1.53B	1.55B
Cash, Cash Equivalents and Short-Term Investments	356.71M	334.07M	215.05M	59.18M	185.32M	248.14M
Total Debt	791.53M	791.16M	841.68M	851.30M	848.75M	981.21M
Total Liabilities	1.25B	1.25B	1.27B	1.33B	1.38B	1.46B
Stockholders Equity	426.67M	400.06M	371.91M	250.76M	148.14M	84.64M
Cash Flow
Free Cash Flow	368.68M	346.11M	319.17M	55.19M	246.99M	179.58M
Operating Cash Flow	389.39M	368.23M	356.55M	83.58M	283.86M	241.97M
Investing Cash Flow	-20.59M	-22.26M	-39.14M	-30.12M	-39.37M	-49.07M
Financing Cash Flow	-223.62M	-240.35M	-155.70M	-170.91M	-304.07M	-57.69M

Kontoor Brands Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 69.97 is above the 20-day moving average (MA) of 62.62, above the 50-day MA of 65.08, and below the 200-day MA of 73.01, indicating a neutral trend. The MACD of 0.91 indicates Negative momentum. The RSI at 63.51 is Neutral, neither overbought nor oversold. The STOCH value of 95.51 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KTB.

Kontoor Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KTB	71 Outperform	$3.89B	15.60	58.07%	2.94%	3.47%	5.86%
Sector *	67 Neutral	¥277.38B	14.70	6.81%	2.50%	5.06%	-22.84%
ZGN	65 Neutral	$3.31B	24.49	8.89%	1.74%	2.26%	-37.52%
COLM	64 Neutral	$2.89B	13.42	12.93%	2.28%	0.81%	4.86%
HBI	58 Neutral	$2.19B	14.41	154.00%	―	-27.88%	―
VFC	50 Neutral	$4.77B	56.22	7.83%	2.78%	-7.41%	―
UA	47 Neutral	$2.08B	20.64	5.50%	―	-8.02%	―

Kontoor Brands Corporate Events

Kontoor Brands Announces Leadership Changes for Growth

On July 29, 2025, Kontoor Brands announced leadership changes with Joseph A. Alkire and Jennifer H. Broyles taking on expanded roles. Alkire will now oversee global operations as Executive Vice President, Chief Financial Officer, and Head of Global Operations, while Broyles will lead international and commercial operations for Lee and Wrangler as Executive Vice President, Chief Commercial Officer, and Global Head of Brands. These changes are part of Kontoor’s strategic evolution to expand its brand portfolio and accelerate growth, aiming to deliver long-term value for shareholders. Tom Waldron, the outgoing Executive Vice President and Chief Operating Officer, will assist in the transition until September 30, 2025.

The most recent analyst rating on (KTB) stock is a Buy with a $108.00 price target. To see the full list of analyst forecasts on Kontoor Brands stock, see the KTB Stock Forecast page.

Kontoor Brands Declares Quarterly Cash Dividend

On July 25, 2025, Kontoor Brands, Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.52 per share of common stock. This dividend is payable on September 19, 2025, to shareholders of record as of September 9, 2025. This decision reflects the company’s ongoing commitment to providing value to its shareholders and may impact its financial positioning and stakeholder relations.

The most recent analyst rating on (KTB) stock is a Buy with a $108.00 price target. To see the full list of analyst forecasts on Kontoor Brands stock, see the KTB Stock Forecast page.

Andrew E. Page Resigns from Kontoor Brands Board

On June 2, 2025, Andrew E. Page resigned from Kontoor Brands‘ Board of Directors, including all committees, due to a conflict of interest with Helly Hansen, a competitor to a brand where he serves as CFO. His resignation was voluntary and not due to any disagreements with the company’s operations or policies.

The most recent analyst rating on (KTB) stock is a Buy with a $108.00 price target. To see the full list of analyst forecasts on Kontoor Brands stock, see the KTB Stock Forecast page.