Kontoor Brands (KTB) AI Stock Analysis

• Market Cap: $4.27B
• Dividend Yield: 2.45%
• Average Volume (3M): 552.35K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 1.25
• Revenue Growth: 9.90%
• EPS Growth: -12.67%
• Country: US
• Employees: 13,200
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.44
• Shares Outstanding: 55,593,613
• 10 Day Avg. Volume: 635,188
• 30 Day Avg. Volume: 552,354
• PEG Ratio: 2.74
• Price to Book (P/B): 11.83
• Price to Sales (P/S): 1.81
• P/FCF Ratio: 13.67
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 2.78
• Enterprise Value/Gross Profit: 5.99
• Enterprise Value/Ebitda: 18.10
• 1Y Price Target: $97.83
• Price Target Upside: 35.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.46
• Revenue Forecast (FY): $3.11B

• Rating: 68 Neutral
• Price Target: $88.00 ▲(21.65% Upside)

Kontoor Brands' overall stock score is driven by strong earnings call performance and solid financial metrics, despite high leverage and declining cash flow growth. The technical indicators suggest a neutral market sentiment, while the valuation remains moderate with an attractive dividend yield.

Positive Factors

Revenue Growth

The upward revision in revenue guidance indicates strong market demand and effective sales strategies, suggesting sustainable growth.

Brand Performance

Consistent market share gains by Wrangler highlight a strong brand presence and competitive advantage in the apparel market.

Debt Reduction

Proactive debt reduction efforts improve financial flexibility and reduce risk, supporting long-term financial health.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth.

Free Cash Flow Decline

A decline in free cash flow growth can strain the company's ability to fund operations and investments, affecting long-term sustainability.

Lee Revenue Decline

A significant decline in Lee's revenue could indicate brand-specific challenges and affect overall company performance if not addressed.

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 demonstrates solid profitability and operational efficiency with healthy margins and a strong return on equity. However, high debt levels and declining free cash flow growth present potential risks. The company needs to focus on managing its leverage and improving cash flow generation to sustain long-term growth and financial stability.

Income Statement

Kontoor Brands shows a solid performance in its income statement with a consistent gross profit margin around 45% and a stable net profit margin of approximately 9%. The TTM revenue growth rate is positive at 1.93%, indicating a steady increase in sales. EBIT and EBITDA margins are healthy, reflecting efficient operational management. However, the revenue growth rate has slowed compared to previous years, which could be a concern if it continues.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.07 in the TTM period, indicating significant leverage, which poses a risk if not managed properly. Return on equity is strong at 54.50%, suggesting effective use of equity to generate profits. The equity ratio is relatively low, reflecting a reliance on debt financing. Overall, while profitability is high, the high leverage is a potential risk factor.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 18.98% in the TTM period, which is concerning. However, the operating cash flow to net income ratio is reasonable at 0.70, indicating that the company is generating sufficient cash from operations. The free cash flow to net income ratio is close to 1, suggesting that most of the net income is being converted into free cash flow. The decline in free cash flow growth needs to be monitored closely.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	2.13B	2.61B	2.61B	2.63B	2.55B	2.76B
Gross Profit	991.04M	1.16B	1.09B	1.13B	1.00B	1.11B
EBITDA	327.79M	384.88M	350.35M	391.18M	256.25M	384.46M
Net Income	153.69M	245.80M	230.99M	245.49M	96.65M	263.07M
Balance Sheet
Total Assets	2.86B	1.65B	1.65B	1.58B	1.52B	2.46B
Cash, Cash Equivalents and Short-Term Investments	82.43M	334.07M	215.05M	59.18M	106.81M	96.78M
Total Debt	1.50B	791.16M	841.68M	851.30M	1.00B	272.33M
Total Liabilities	2.33B	1.25B	1.27B	1.33B	1.45B	735.01M
Stockholders Equity	529.62M	400.06M	371.91M	250.76M	69.26M	1.72B
Cash Flow
Free Cash Flow	151.50M	346.11M	319.17M	55.19M	740.30M	-119.00M
Operating Cash Flow	167.45M	368.23M	356.55M	83.58M	777.79M	-96.30M
Investing Cash Flow	-889.92M	-22.26M	-39.14M	-30.12M	483.95M	11.33M
Financing Cash Flow	501.86M	-240.35M	-155.70M	-170.91M	-1.25B	106.33M

Kontoor Brands Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 72.34
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KTB, the sentiment is Negative. The current price of 72.34 is below the 20-day moving average (MA) of 81.17, below the 50-day MA of 80.46, and above the 200-day MA of 70.75, indicating a neutral trend. The MACD of -1.75 indicates Positive momentum. The RSI at 36.02 is Neutral, neither overbought nor oversold. The STOCH value of 19.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KTB.

Kontoor Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	75 Outperform	$19.20B	25.30	34.01%	1.10%	12.32%	29.40%
KTB	68 Neutral	$4.27B	19.78	49.11%	2.45%	9.90%	-12.67%
COLM	67 Neutral	$2.87B	15.75	10.84%	2.42%	2.77%	-7.83%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HBI	52 Neutral	$2.33B	14.28	140.06%	―	-19.47%	―
VFC	50 Neutral	$5.77B	65.28	6.39%	2.47%	-4.56%	―

Kontoor Brands Corporate Events

Kontoor Brands Reports Strong Q3, Raises Outlook

Kontoor Brands, Inc., a prominent player in the lifestyle, outdoor, and workwear apparel industry, is known for its iconic brands Wrangler, Lee, and Helly Hansen. The company leverages a strategic sourcing model and a robust supply chain to drive growth and deliver value to stakeholders.

Kontoor Brands Increases Quarterly Dividend by 2%

On October 24, 2025, Kontoor Brands announced a 2% increase in its regular quarterly cash dividend, now set at $0.53 per share, payable on December 18, 2025, to shareholders of record by December 8, 2025. This decision reflects the company’s commitment to delivering value to its shareholders and may enhance its attractiveness in the market.

The most recent analyst rating on (KTB) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Kontoor Brands stock, see the KTB Stock Forecast page.

Kontoor Brands Approves Executive Salary and Incentive Increases

On July 29, 2025, Kontoor Brands announced the appointments of Joseph A. Alkire as Executive Vice President, Chief Financial Officer and Global Head of Operations, and Jennifer H. Broyles as Executive Vice President, Chief Commercial Officer and Global Head of Brands. Subsequently, on September 22, 2025, the company’s Talent and Compensation Committee approved salary and incentive increases for both executives, with changes retroactive to August 1, 2025, and long-term incentive adjustments effective in 2026. These changes reflect the company’s strategic focus on strengthening its leadership team to enhance operational efficiency and brand management.

The most recent analyst rating on (KTB) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Kontoor Brands stock, see the KTB Stock Forecast page.

Kontoor Brands Announces Executive Transition Agreement

On July 29, 2025, Kontoor Brands announced that Thomas E. Waldron stepped down from his position as Executive Vice President and Chief Operating Officer. He will remain with the company in a non-executive role until September 30, 2025, to ensure a smooth transition. Under a Separation Agreement signed on August 31, 2025, Waldron will receive $1,350,000 over eighteen months, along with other benefits such as eligibility for performance-based incentives and healthcare coverage under COBRA. The agreement also includes non-compete and non-solicitation clauses.

The most recent analyst rating on (KTB) stock is a Buy with a $75.00 price target. To see the full list of analyst forecasts on Kontoor Brands stock, see the KTB Stock Forecast page.

Kontoor Brands Reports Strong Growth Amid Challenges

Kontoor Brands’ latest earnings call painted a picture of robust growth tempered by certain challenges. The company reported strong revenue growth, particularly driven by its Wrangler and Helly Hansen brands, alongside notable improvements in gross margin and earnings per share (EPS). However, it also acknowledged hurdles such as a decline in Lee’s revenue, increased inventory levels, and the impact of tariffs. Despite these challenges, Kontoor Brands expressed confidence in its strategic plans and future growth opportunities.

Kontoor Brands Reports Strong Q2 2025 Results

Kontoor Brands, Inc. is a prominent player in the lifestyle, outdoor, and workwear sectors, renowned for its iconic brands such as Wrangler, Lee, and Helly Hansen. The company leverages its global platform and strategic sourcing model to drive growth and deliver value to its stakeholders.