Kontoor Brands (KTB) AI Stock Analysis

• Market Cap: $4.00B
• Dividend Yield: 2.9%
• Average Volume (3M): 603.93K
• Price to Earnings (P/E): 17.6
• Beta (1Y): 0.85
• Revenue Growth: 1.19%
• EPS Growth: 3.19%
• Country: US
• Employees: 13,200
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.20
• Shares Outstanding: 55,561,370
• 10 Day Avg. Volume: 713,697
• 30 Day Avg. Volume: 603,931
• PEG Ratio: 0.31
• Price to Book (P/B): 8.89
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.39
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 2.58
• Enterprise Value/Ebitda: 1.99
• 1Y Price Target: $85.00
• Price Target Upside: 18.68% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 73 Outperform
• Price Target: $73.00 ▲(1.93%Upside)

Kontoor Brands' overall stock score is bolstered by strong financial performance and a positive earnings outlook, particularly due to strategic initiatives like the acquisition of Helly Hansen. Valuation metrics are favorable, supporting the stock's attractiveness. However, technical indicators suggest caution with short-term momentum, and leverage risks need monitoring.

Positive Factors

Acquisition

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.

Financial Performance

Project Jeanius is projected to achieve more than $100M in cost savings by 2026, with significant EBIT benefits and enhancements to brand campaigns.

Negative Factors

Consumer Trends

The US consumer is meaningfully slowing down after the holiday season, impacting the company's performance.

Growth Challenges

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

Tariffs

The potential reintroduction of a 25% tariff on goods sourced in Mexico poses a significant risk, equating to an unmitigated headwind of $50M or $0.70 in EPS.

Kontoor Brands Business Overview & Revenue Model

Company Description

Kontoor Brands, Inc. (KTB) is a global lifestyle apparel company, primarily known for its iconic denim brands, Wrangler and Lee. Headquartered in Greensboro, North Carolina, the company designs, manufactures, and distributes a diverse range of clothing and accessories. Operating in the retail and consumer goods sectors, Kontoor Brands emphasizes quality, style, and sustainability in its product offerings, catering to a wide customer base across various demographics.

How the Company Makes Money

Kontoor Brands generates revenue through the sale of its apparel and accessories under the Wrangler and Lee brands. The company's primary revenue streams include wholesale distribution to major retailers, direct-to-consumer sales through its e-commerce platforms, and owned retail stores. In addition, Kontoor Brands leverages strategic partnerships and licensing agreements to expand its market reach and product offerings. The company focuses on brand strength, operational efficiency, and global market expansion to drive profitability and long-term growth.

Kontoor Brands Financial Statement Overview

Summary

Kontoor Brands maintains strong profitability and effective cash flow management, with a stable net 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	Mar 2022	Mar 2021
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	369.06M	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: 71.62
• 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 71.62 is above the 20-day moving average (MA) of 66.00, above the 50-day MA of 66.52, and below the 200-day MA of 75.03, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 65.06 is Neutral, neither overbought nor oversold. The STOCH value of 91.53 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
ZGN	76 Outperform	$3.65B	27.03	8.89%	1.44%	2.26%	-37.52%
KTB	73 Outperform	$4.00B	17.64	56.32%	2.90%	1.19%	3.19%
COLM	63 Neutral	$3.52B	16.42	12.34%	1.87%	-1.69%	-4.01%
Sector *	62 Neutral	$16.76B	11.38	-7.38%	2.96%	1.59%	-23.30%
UA	62 Neutral	$3.01B	―	-9.95%	―	-7.47%	-131.70%
HBI	50 Neutral	$1.68B	―	-23.24%	―	-33.72%	-892.32%
VFC	47 Neutral	$4.86B	―	-2.39%	2.88%	-7.52%	94.28%

Kontoor Brands Corporate Events

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.