Kontoor Brands, Inc.
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Range $99 – $136
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About the company
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 & Republic, which are distributed both domestically in the United States and across global markets.
- CEO
- Scott H. Baxter
- IPO
- 2019
- Employees
- 10,600
- HQ
- Greensboro, NC, US
AI snapshot
Six angles, distilled from the data.
KTB is still in a multi-month downtrend, trading below its 200-day average and well under its 52-week high. The setup is more of a reset than a breakout, with the stock closer to the lower half of its yearly range than to prior highs.
Wall Street stays constructive, with a Buy consensus and an average target of 112.5 versus a 64.71 last close. Recent updates have trended higher, including target raises from BTIG, UBS, Barclays, and Wells Fargo, even as ratings remain mixed rather than uniformly bullish.
The earnings record is solid, with 6 beats in the last 7 reported quarters. Next-year EPS is modeled at 6.58 versus 4.94 TTM, so shareholders should watch whether margin discipline and revenue growth can keep that upgrade path intact after the last quarter’s miss.
Recent insider activity leans negative, but most of the volume is tied to awards, vesting, or tax-related flows rather than open-market conviction. The clearest signal is the CEO’s large August sale, while the rest of the activity looks more like routine compensation mechanics than fresh buying.
Profitability is strong, led by a 49.3% gross margin and a 15.5% operating margin. Revenue grew 18.6% year over year, but earnings fell 11.4%, so the key question is whether top-line momentum can translate into cleaner profit growth.
KTB screens as a quality apparel name with a 49.5% ROE and 17.21% FCF yield, which supports a premium setup versus many consumer discretionary peers. At 10.9x earnings, valuation still looks restrained relative to the 112.5 consensus target.
Similar companies
Peers in the same neighborhood.
- Market Cap
- $3.55B
- P/E
- 13.26
- Fwd P/E
- 12.15
- PEG
- 1.94
- P/S
- 1.16
- P/B
- 5.72
- EV/EBITDA
- 11.54
- Div Yield
- 3.30%
- Gross Margin
- 49.71%
- Op Margin
- 12.66%
- Net Margin
- 8.73%
- ROE
- 45.96%
- ROIC
- 14.25%
Latest fiscal year · YoY change
- Revenue
- $3.15B+21.0%
- Gross Profit
- $1.47B+26.8%
- Op Income
- $446.01M
- Net Income
- $227.45M-7.5%
- EPS
- $4.10-7.2%
- OCF Growth
- +59.6%
- FCF Growth
- +63.7%
- 52W High
- $88.96
- 52W Low
- $56.19
- 50D MA
- $74.94
- 200D MA
- $71.60
- Beta
- 0.90
- RSI (14)
- 37
- Avg Volume
- 733.22K
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
Kontoor posted a strong second quarter, raised full-year guidance, and said Helly Hansen and Wrangler are both gaining momentum while Lee’s divestiture remains on track.· August 12, 2026
- First-half revenue was $1.2 billion, up 31%, with adjusted gross margin of 52.2% and adjusted EPS of $2.12, both well ahead of prior outlook.
- Q2 adjusted EPS was $1.06, up 13% year over year, and adjusted gross margin expanded 710 basis points to 53.8%.
- Helly Hansen continued to outperform: Q2 pro forma revenue rose 6% to $114 million and the brand posted positive operating profit in its seasonally smallest quarter.
- Wrangler gained share again, with Circana showing 17 straight quarters of share gains in bottoms and first-half female revenue up 20%.
- Management raised full-year outlooks for gross margin, operating income and EPS, while keeping revenue guidance unchanged and reaffirming the Lee sale for Q4.
Kontoor reported first-half revenue of $1.2 billion, up 31% versus prior year, adjusted gross margin of 52.2% (+590 bps), and adjusted EPS of $2.12 (+36%). In Q2, adjusted gross margin was 53.8% (+710 bps) and adjusted EPS was $1.06 (+13%); SG&A was $221 million, or 37.8% of revenue. Helly Hansen Q2 pro forma revenue was $114 million, up 6%, and Helly posted positive operating profit. Full-year guidance was raised for adjusted gross margin to 49.8%–50% (vs. 48.3%–48.5% prior), adjusted operating income to $413 million–$420 million, and adjusted EPS to $5.25–$5.35; revenue guidance was unchanged at $2.66 billion–$2.71 billion. Management also expects second-half revenue of $1.46 billion–$1.51 billion, full-year cash from operations of about $450 million, and more than $900 million of capital returned in 2026 including the planned $400 million ASR tied to Lee proceeds. Net debt was $1.1 billion, cash was $58 million, inventory was $526 million (down 3%), and the revolver remained undrawn.
Scott Baxter framed the quarter as evidence that Kontoor has reached an inflection point in its transformation, driven by Wrangler momentum, Helly Hansen integration, Project Genius, and the Lee divestiture. He stressed that the company is investing behind growth while building a stronger long-term operating model, including separating Helly sport and workwear, sharpening Wrangler’s focus after Lee, and finishing Project Genius above its $100 million gross savings target. His tone was upbeat and confident, especially around the talent base, product innovation, and the idea that 2027 should benefit from the portfolio changes now being put in place.
Joe Alkire focused on the financial step-up and the mechanics behind the raised outlook. He highlighted stronger-than-expected gross margin, driven by Helly, Project Genius, and mix, and said the company now expects full-year adjusted gross margin of 49.8% to 50%, adjusted operating income of $413 million to $420 million, and adjusted EPS of $5.25 to $5.35, while absorbing about $0.55 of Lee-related stranded expenses and about $0.36 of incremental investment versus the prior plan. He also pointed to $526 million of inventory, $1.1 billion of net debt, $58 million of cash, an undrawn $500 million revolver, $75 million of year-to-date share repurchases, and expected capital returns above $900 million in 2026 including the planned ASR and debt paydown.
Analysts pressed on how much of the second-half acceleration in Wrangler and Helly is visible today and how much depends on new distribution, DTC expansion, and brand-building spend. Management said the back-half outlook is supported by committed inventory and visible distribution wins, not by assuming any meaningful improvement in retail inventory conditions; for Helly, they said growth should remain mid-single-digit in constant currency and that 2027 growth should accelerate as more of the brand’s potential becomes under Kontoor’s control. Questions also focused on Helly’s unusually strong profitability and the gap between prior Street EPS expectations and today’s 2027 framework; management responded that Helly’s Q2 positive operating profit was a meaningful milestone and that the Lee divestiture can be offset over time through an ASR, debt paydown, and underlying brand growth.
The call’s bullish case is that both major brands are outperforming and the company is using the extra gross margin to fund growth, not just harvest profits. Helly Hansen is growing ahead of plan, turning profitable earlier than expected, and still has room to expand in North America, outdoor, and workwear; Wrangler is taking share, growing female and Western, and should benefit from focused investment after Lee separates. Management also sounded confident that capital returns and stranded-cost mitigation can make Lee immaterial to EPS over time.
The main risks are that the second-half growth thesis relies on visible distribution wins and execution, while retail inventory remains cautious and volatile. Helly’s reported growth still depends partly on currency and the brand is early in its expansion, so management is asking investors to wait for more detail at Investor Day. There is also a meaningful near-term burden from Lee-related stranded costs of about $0.55 per share and from tariffs and other macro uncertainty, even though management expects to offset those over 12 to 18 months.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 98.2%
- Shares Outstanding
- 55.27M
- Float Shares
- 54.28M
of shares held by institutions
413 13F filers
Buy/sell ratio 0.75. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Congressional trading
Senate and House stock disclosures for KTB, newest first.
| Member | Type | Traded | |
|---|---|---|---|
| David TroneHouse · MD06 | Sell | Mar 4, 20 | Filing → |
| Francis RooneyHouse · FL19 | Sell | Apr 7, 20 | Filing → |
| Charles Patrick RobertsSenate · KS | Sell | Oct 17, 19 | Filing → |
| Charles Patrick RobertsSenate · KS | Buy | Oct 1, 19 | Filing → |
| John HoevenSenate · ND | Buy | Sep 24, 19 | Filing → |
| David McKinleyHouse · WV01 | Sell | Jul 5, 19 | Filing → |
| David Eugene PriceHouse · NC04 | — | May 28, 19 | Filing → |
| David Eugene PriceHouse · NC04 | Sell | Jun 28, 19 | Filing → |
Source: public STOCK Act disclosures. Filed weeks after the trade — a lagging signal, not a real-time one.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Blackrock, Inc. | 8.10M | ▲ 233.77K |
| Vanguard Group Inc | 6.13M | ▼ 32.91K |
| Pnc Financial Services Group, Inc. | 5.75M | ▼ 269.55K |
| Vanguard Portfolio Management LLC | 3.39M | ▲ 70.19K |
| Vanguard Capital Management LLC | 2.44M | ▼ 1.76K |
| Jpmorgan Chase & Co | 2.37M | ▼ 204.41K |
| State Street Corp | 2.12M | ▲ 74.23K |
| T. Rowe Price Investment Management, Inc. | 1.97M | ▲ 107.56K |
| Fmr LLC | 1.83M | ▼ 183.59K |
| Jennison Associates LLC | 1.60M | ▲ 378.25K |
| Invesco Ltd. | 1.44M | ▲ 282.27K |
| Geode Capital Management, LLC | 1.34M | ▲ 66.13K |
Held by 469 ETFs
Biggest fund positions in KTB by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Sep 23, 26 | Caulfield James T. | other | 0 |
| Sep 23, 26 | Skipworth Michael | other | 1,611 |
| Sep 23, 26 | Skipworth Michael | other | 0 |
| Sep 21, 26 | Taylor Andrew Lyn | other | 68 |
| Sep 21, 26 | ALKIRE JOSEPH A | other | 872 |
| Aug 28, 26 | Taylor Andrew Lyn | other | 0 |
| Aug 13, 26 | Baxter Scott H | other | 184,403 |
| Aug 13, 26 | Baxter Scott H | sell | 116,872 |
| Aug 14, 26 | Baxter Scott H | other | 56,160 |
| Aug 13, 26 | Baxter Scott H | sell | 67,531 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our KTB coverage
Recent articles, reports, and earnings notes.

Kontoor Brands (KTB): Margin Expansion and Buybacks Drive Upside
Kontoor Brands is sharpening its focus on Wrangler and Helly Hansen after moving to divest Lee. Strong cash flow, rising margins, and a modest valuation support a Buy call despite leverage and execution risk.

Kontoor Brands, Inc. (KTB) rises on deep earnings analysis
Kontoor Brands, Inc. (KTB) rises after an earnings beat that went beyond the headline. This deep dive weighs the EPS outperformance against the revenue miss, reviews Wrangler and Helly Hansen momentum, and examines what the latest results and 2026 outlook may mean for the stock.

Kontoor Brands, Inc. (KTB) rises on earnings beats
Kontoor Brands, Inc. (KTB) rises 5.3% after reporting earnings beats, as investors react positively to stronger-than-expected results and improved outlook.
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Are Consumer Discretionary Stocks Lagging Kontoor Brands (KTB) This Year?
zacks.com · Oct 5
Kontoor Brands Board of Directors Elects Jamie Caulfield, Former PepsiCo, Inc. Chief Financial Officer and Michael Skipworth, President and Chief Executive Officer of Wingstop Inc. as New Directors
businesswire.com · Sep 23
Kontoor Brands, Inc. $KTB Shares Sold by Tidal Investments LLC
defenseworld.net · Sep 21
Is Kontoor Brands (KTB) Stock Outpacing Its Consumer Discretionary Peers This Year?
zacks.com · Sep 18
Down 17.7% in 4 Weeks, Here's Why Kontoor (KTB) Looks Ripe for a Turnaround
zacks.com · Sep 10
Kontoor Brands Inc (KTB) Stock Down 5.0% -- Now Undervalued? GF Score: 80/100
gurufocus.com · Sep 9
Kontoor Brands, Inc. (KTB) Analyst/Investor Day Transcript
seekingalpha.com · Sep 2
Kontoor Brands Targets $1.1B Helly Hansen Revenue by 2030 as U.S. Expansion Accelerates
marketbeat.com · Sep 2
Headlines from third-party outlets — TickerSpark isn't affiliated with these sources.
AI analysis · Last refreshed October 4, 2026 · Live quote · Not investment advice