Kontoor Brands (KTB)
Market Price (11/4/2026): $74.86 | Market Cap: $4.1 BilSector: Consumer Discretionary | Industry: Apparel, Accessories & Luxury Goods
Kontoor Brands (KTB)
Market Price (11/4/2026): $74.86Market Cap: $4.1 BilSector: Consumer DiscretionaryIndustry: Apparel, Accessories & Luxury Goods
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 9.1%, Dividend Yield is 2.8%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 4.9%, FCF Yield is 9.9% Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 34% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 15%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 14% Low stock price volatilityVol 12M is 48% Megatrend and thematic driversMegatrends include E-commerce & Digital Retail, and Sustainable Consumption. Themes include Direct-to-Consumer Brands, Eco-friendly Products, Show more. | Weak multi-year price returns2Y Excs Rtn is -24%, 3Y Excs Rtn is -3.0% Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 12% | Key risksKTB key risks include [1] slower progress in rejuvenating its key brands to adapt to evolving consumer preferences and [2] vulnerability to supply chain disruptions and trade policy volatility that could increase costs and impair its ability to meet customer demand. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 9.1%, Dividend Yield is 2.8%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 4.9%, FCF Yield is 9.9% |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 34% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 15%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 14% |
| Low stock price volatilityVol 12M is 48% |
| Megatrend and thematic driversMegatrends include E-commerce & Digital Retail, and Sustainable Consumption. Themes include Direct-to-Consumer Brands, Eco-friendly Products, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -24%, 3Y Excs Rtn is -3.0% |
| Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 12% |
| Key risksKTB key risks include [1] slower progress in rejuvenating its key brands to adapt to evolving consumer preferences and [2] vulnerability to supply chain disruptions and trade policy volatility that could increase costs and impair its ability to meet customer demand. |
Qualitative Assessment
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Kontoor Brands (KTB) stock has lost about 5% since 7/31/2026 because of the following key factors:
1. Kontoor Brands reported a revenue miss for its fiscal Q2 2026, which ended on July 4, 2026. The company announced its results on August 12, 2026, revealing revenue from continuing operations of $584.29 million, falling short of the consensus estimate of $586.95 million. This represented an 11.2% decline year-over-year. While the company did beat adjusted earnings per share (EPS) estimates at $1.06 against a $1.05 consensus, and raised its full-year outlook, the top-line miss likely contributed to negative investor sentiment during the specified period.
2. The ongoing process and eventual completion of the Lee® business divestiture introduced a degree of uncertainty. Kontoor Brands announced in May 2026 an agreement to sell the Lee® business to Authentic Brands Group for up to $1 billion, with the divestiture expected to close in fiscal Q4 2026. Although the company planned to deploy proceeds into a $400 million accelerated share repurchase program and voluntary debt payments, targeting over $900 million in total capital returns for fiscal 2026, the transition of a significant brand could create short-term market apprehension regarding portfolio focus and revenue concentration. The sale was formally completed on November 3, 2026, within the analysis period.
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Kontoor Brands (KTB) stock has lost about 5% since 7/31/2026 because of the following key factors:
1. Kontoor Brands reported a revenue miss for its fiscal Q2 2026, which ended on July 4, 2026. The company announced its results on August 12, 2026, revealing revenue from continuing operations of $584.29 million, falling short of the consensus estimate of $586.95 million. This represented an 11.2% decline year-over-year. While the company did beat adjusted earnings per share (EPS) estimates at $1.06 against a $1.05 consensus, and raised its full-year outlook, the top-line miss likely contributed to negative investor sentiment during the specified period.
2. The ongoing process and eventual completion of the Lee® business divestiture introduced a degree of uncertainty. Kontoor Brands announced in May 2026 an agreement to sell the Lee® business to Authentic Brands Group for up to $1 billion, with the divestiture expected to close in fiscal Q4 2026. Although the company planned to deploy proceeds into a $400 million accelerated share repurchase program and voluntary debt payments, targeting over $900 million in total capital returns for fiscal 2026, the transition of a significant brand could create short-term market apprehension regarding portfolio focus and revenue concentration. The sale was formally completed on November 3, 2026, within the analysis period.
3. Analyst sentiment surrounding Kontoor Brands was mixed, offering limited strong catalysts for significant upward movement. While a consensus of analysts maintained a "Buy" rating for KTB with an average price target around $96.56, individual firms showed varied perspectives. For instance, Jefferies upgraded the stock to "Buy" with an $89 target, and UBS reiterated a "Buy" with a $136 target. However, Needham initiated coverage with a "Hold" rating, and Stifel reiterated its "Hold" rating with an $80 price target, citing potential tempering of near-term expectations due to Helly Hansen's off-price exposure and cautious wholesale ordering.
4. Broader macroeconomic factors, particularly selective consumer spending, likely played a role in the stock's trend. Despite a generally healthy apparel market in fiscal Q3 2026, consumers remained selective in their discretionary purchases. While needs-based apparel categories demonstrated resilience and U.S. retail demand showed acceleration with apparel as a standout performer, overall caution in discretionary spending could impact a company like Kontoor Brands. Elevated oil prices during the period may have also contributed to increased cost pressures for businesses and consumers, potentially dampening overall spending power.
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Stock Movement Drivers
Fundamental Drivers
The -7.5% change in KTB stock from 7/31/2026 to 11/3/2026 was primarily driven by a -6.2% change in the company's Net Income Margin (%).| (LTM values as of) | 7312026 | 11032026 | Change |
|---|---|---|---|
| Stock Price ($) | 83.14 | 76.92 | -7.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,977 | 3,069 | 3.1% |
| Net Income Margin (%) | 9.3% | 8.7% | -6.2% |
| P/E Multiple | 16.6 | 15.8 | -4.6% |
| Shares Outstanding (Mil) | 55 | 55 | 0.2% |
| Cumulative Contribution | -7.5% |
Market Drivers
7/31/2026 to 11/3/2026| Return | Correlation | |
|---|---|---|
| KTB | -7.5% | |
| Market (SPY) | 1.0% | 9.2% |
| Sector (XLY) | 1.1% | 34.5% |
Fundamental Drivers
The 6.4% change in KTB stock from 4/30/2026 to 11/3/2026 was primarily driven by a 10.1% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 4302026 | 11032026 | Change |
|---|---|---|---|
| Stock Price ($) | 72.28 | 76.92 | 6.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,787 | 3,069 | 10.1% |
| Net Income Margin (%) | 8.2% | 8.7% | 7.0% |
| P/E Multiple | 17.6 | 15.8 | -10.3% |
| Shares Outstanding (Mil) | 56 | 55 | 0.8% |
| Cumulative Contribution | 6.4% |
Market Drivers
4/30/2026 to 11/3/2026| Return | Correlation | |
|---|---|---|
| KTB | 6.4% | |
| Market (SPY) | 5.2% | 15.8% |
| Sector (XLY) | -0.7% | 41.0% |
Fundamental Drivers
The -2.1% change in KTB stock from 10/31/2025 to 11/3/2026 was primarily driven by a -20.6% change in the company's Net Income Margin (%).| (LTM values as of) | 10312025 | 11032026 | Change |
|---|---|---|---|
| Stock Price ($) | 78.60 | 76.92 | -2.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,285 | 3,069 | 34.3% |
| Net Income Margin (%) | 11.0% | 8.7% | -20.6% |
| P/E Multiple | 17.4 | 15.8 | -9.0% |
| Shares Outstanding (Mil) | 56 | 55 | 0.9% |
| Cumulative Contribution | -2.1% |
Market Drivers
10/31/2025 to 11/3/2026| Return | Correlation | |
|---|---|---|
| KTB | -2.1% | |
| Market (SPY) | 11.5% | 19.7% |
| Sector (XLY) | -1.6% | 35.2% |
Fundamental Drivers
The 81.0% change in KTB stock from 10/31/2023 to 11/3/2026 was primarily driven by a 36.3% change in the company's P/E Multiple.| (LTM values as of) | 10312023 | 11032026 | Change |
|---|---|---|---|
| Stock Price ($) | 42.49 | 76.92 | 81.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,621 | 3,069 | 17.1% |
| Net Income Margin (%) | 7.8% | 8.7% | 11.4% |
| P/E Multiple | 11.6 | 15.8 | 36.3% |
| Shares Outstanding (Mil) | 56 | 55 | 1.8% |
| Cumulative Contribution | 81.0% |
Market Drivers
10/31/2023 to 11/3/2026| Return | Correlation | |
|---|---|---|
| KTB | 81.0% | |
| Market (SPY) | 86.6% | 36.3% |
| Sector (XLY) | 57.8% | 43.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| KTB Return | 30% | -18% | 63% | 41% | -26% | 29% | 131% |
| Peers Return | 48% | -45% | 26% | 18% | 11% | 3% | 39% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 10% | 101% |
Monthly Win Rates [3] | |||||||
| KTB Win Rate | 50% | 50% | 67% | 75% | 42% | 64% | |
| Peers Win Rate | 58% | 30% | 53% | 55% | 50% | 55% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 36% | |
Max Drawdowns [4] | |||||||
| KTB Max Drawdown | -29% | -38% | -28% | -14% | -45% | -28% | |
| Peers Max Drawdown | -27% | -57% | -37% | -33% | -47% | -38% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: LEVI, VFC, BOOT, PVH, AEO.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 11/3/2026 (YTD)
How Low Can It Go
| Event | KTB | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -41.0% | -18.8% |
| % Gain to Breakeven | 69.5% | 23.1% |
| Time to Breakeven | 454 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -19.9% | -6.7% |
| % Gain to Breakeven | 24.9% | 7.1% |
| Time to Breakeven | 27 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -37.0% | -24.5% |
| % Gain to Breakeven | 58.8% | 32.4% |
| Time to Breakeven | 230 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -64.2% | -33.7% |
| % Gain to Breakeven | 179.2% | 50.9% |
| Time to Breakeven | 227 days | 140 days |
In The Past
Kontoor Brands's stock fell -41.0% during the 2025 US Tariff Shock. Such a loss loss requires a 69.5% gain to breakeven.
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Asset Allocation
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| Event | KTB | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -41.0% | -18.8% |
| % Gain to Breakeven | 69.5% | 23.1% |
| Time to Breakeven | 454 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -37.0% | -24.5% |
| % Gain to Breakeven | 58.8% | 32.4% |
| Time to Breakeven | 230 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -64.2% | -33.7% |
| % Gain to Breakeven | 179.2% | 50.9% |
| Time to Breakeven | 227 days | 140 days |
In The Past
Kontoor Brands's stock fell -41.0% during the 2025 US Tariff Shock. Such a loss loss requires a 69.5% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Kontoor Brands (KTB)
Kontoor Brands (NYSE: KTB) is a global lifestyle apparel company specializing in the design, manufacturing, and distribution of denim, apparel, and accessories. The company's core business revolves around its renowned brand portfolio, primarily operating through its Wrangler and Lee segments, which are integral to its market strategy and product development.
The company's main products include a wide range of denim wear, such as jeans, jackets, and shirts, complemented by other casual apparel and accessories. These offerings are marketed under widely recognized brands like Wrangler, Lee, and Rock & Republic, catering to consumers seeking durable and stylish everyday wear across various demographics.
Kontoor Brands serves a diverse international customer base, with significant presence in the United States, the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Its products are distributed through multiple channels, including large mass merchants, specialty and department stores, company-operated retail stores, and robust online platforms, ensuring broad accessibility to its target consumers.
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Here are 1-3 brief analogies to describe Kontoor Brands (KTB):
- Essentially a Levi Strauss & Co. (LEVI) for the Wrangler and Lee brands.
- Think of them as a Gap Inc. (GPS) specializing in classic American denim and casual wear.
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- Denim: Kontoor Brands designs, manufactures, and distributes denim fabric and products, notably jeans, under its various brands.
- Apparel: The company offers a range of clothing items beyond denim, including shirts, jackets, and other garments.
- Accessories: Kontoor Brands also markets and distributes various accessories that complement its apparel lines.
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Kontoor Brands (KTB) sells its products primarily to other companies, specifically a variety of retailers that then sell to individual consumers. The company's description of its primary distribution channels indicates that its major customers are large mass merchants, specialty stores, and mid-tier and traditional department stores.
Examples of major customer companies, based on the typical distribution for brands like Wrangler and Lee, include:
- Walmart Inc. (WMT)
- Target Corporation (TGT)
- Kohl's Corporation (KSS)
- Macy's, Inc. (M)
- Dillard's, Inc. (DDS)
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Scott Baxter President, Chief Executive Officer and Chairman of the Board
Scott Baxter was appointed CEO of Kontoor Brands in August 2018 and led the newly formed corporation through a spin-off from VF Corporation into an independent, publicly traded company. He has more than 30 years of experience in retail, operations, marketing, merchandising, sales, and manufacturing. Prior to his role at Kontoor, he served as Group President, Americas West at VF Corporation, where he was responsible for brands such as The North Face® and Vans®. His other leadership positions at VF included Group President, Outdoor & Action Sports, Americas; Vice President, VF Corporation & Group President, Jeanswear, Imagewear and South America; and President of the Licensed Sports Group. Before joining VF in 2007, Mr. Baxter led the Services division at The Home Depot, Inc., and held leadership roles with Edward Don & Company, PepsiCo, and Nestle. He currently serves on the board of directors for Lowe's.
Joe Alkire Executive Vice President, Chief Financial Officer & Global Head of Operations
Joe Alkire was appointed Executive Vice President and Chief Financial Officer of Kontoor Brands in August 2023. Before joining Kontoor, he served as Chief Operating Officer and Chief Financial Officer for BrüMate, Inc., a high-growth, private equity-backed consumer products company. He also previously held the position of Vice President, Corporate Development, Treasury, and Investor Relations for VF Corporation. Mr. Alkire began his career as an investment banking and equity research analyst at William Blair & Company. He serves on the board of directors for BrüMate, Inc..
Jenni Broyles Executive Vice President, Chief Commercial Officer & Global Head of Brands
Jenni Broyles is responsible for global marketing, product, design, sales, merchandising, and analytics, as well as international and commercial operations for Lee® and Wrangler® brands. Her role expanded in July 2025 to encompass all international and commercial operations for the Lee and Wrangler brands.
Ezio Garciamendez EVP, Chief Supply Chain Officer
Ezio Garciamendez leads all aspects of Supply Chain management for Kontoor Brands, including global operations, planning, manufacturing, sourcing, quality, customer service, distribution, logistics, master data governance, product development, and sustainability. He brings more than 20 years of experience in the consumer-packaged goods industry.
Pete Kidd EVP and Chief Human Resources Officer
Pete Kidd is responsible for Kontoor Brands' global human resources strategy and operations, including talent acquisition and retention, organizational development, culture and engagement, total rewards, HR information systems, and corporate communications. He has more than 30 years of experience across Human Resources, Accounting, and Information Technology functions. He joined Kontoor Brands in 2022 as Senior Vice President, Global Total Rewards, and was promoted to his current role in 2023.
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Key Risks to Kontoor Brands (KTB)
- Macroeconomic Conditions and Consumer Demand Volatility: Kontoor Brands operates in an apparel sector highly sensitive to global macroeconomic conditions, including inflation, elevated interest rates, and recessionary concerns. These factors, alongside fluctuating foreign currency exchange rates and inconsistent consumer demand, can significantly impact the company's revenue growth, profitability, and overall market position. The core denim business is particularly vulnerable to shifts in consumer spending and evolving fashion preferences.
- Global Supply Chain Disruptions and Geopolitical Events: The company's global supply chain is susceptible to volatility stemming from ongoing global supply chain issues and geopolitical events, such as conflicts and trade negotiations. These disruptions, coupled with increased tariff rates, can adversely affect Kontoor Brands' operational efficiency, lead to higher operating expenses, and pressure gross margins.
- Underperformance of Core Brands and High Debt Levels: Kontoor Brands faces challenges with weak organic growth in its core brands, notably the persistent underperformance of the Lee brand. While the Wrangler brand has shown some momentum, the overall growth of the established denim portfolio has been slow, indicating a mature business in a competitive market. This is compounded by a high net debt to equity ratio. The acquisition of Helly Hansen, while intended to diversify the portfolio, has stretched the company's balance sheet and introduced integration and execution risks, with some analysts questioning its strategic and financial rationale due to lower segment margins.
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Kontoor Brands (KTB) operates within the global and U.S. denim and apparel markets. The addressable markets for their main products are substantial:
- Global Denim Market: The global denim market size was valued at USD 78.90 billion in 2025 and is projected to reach USD 131.38 billion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 6.61% during 2026-2033.
- U.S. Denim Market: The U.S. denim market size was valued at USD 21.96 billion in 2025 and is projected to reach USD 35.87 billion by 2033, growing at a CAGR of 6.36% during 2026-2033.
- Global Apparel Market: The global apparel market is valued at USD 1.84 trillion in 2025. It is expected to reach USD 2.54 trillion by 2033, with a CAGR of 4.1% from 2026 to 2033.
- U.S. Apparel Market: The United States apparel market is valued at USD 365.70 billion in 2025 and is projected to grow at a CAGR of 2.11% between 2025 and 2028.
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Kontoor Brands (KTB) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives and brand-specific momentum:
- Helly Hansen Acquisition and Integration: The acquisition and ongoing integration of Helly Hansen are significant drivers of revenue growth, providing immediate accretion to revenue and earnings, and diversifying Kontoor Brands' portfolio into outdoor and workwear categories. The company anticipates continued strong revenue and earnings growth from Helly Hansen, including through its China joint venture.
- Continued Growth of the Wrangler Brand: The Wrangler brand consistently demonstrates strong performance, increasing global revenue, particularly in the U.S. direct-to-consumer (DTC) and wholesale channels. Kontoor Brands is making incremental brand and demand creation investments in Wrangler, aiming for continued market share expansion across its core bottoms business, female, western, and DTC segments.
- Lee Brand Turnaround and Rejuvenation: The company has identified the Lee brand turnaround as a strategic priority, with efforts progressing to improve its performance. While global revenue for Lee saw a decrease in a recent quarter, U.S. revenue rose, driven by growth in digital and wholesale, indicating positive momentum in its revitalization efforts.
- Direct-to-Consumer (DTC) Channel Acceleration: Kontoor Brands is strategically accelerating its shift towards direct-to-consumer channels to capture higher margins and foster a more direct connection with consumers. This includes investments in its owned e-commerce platforms and branded retail, with targets for DTC to represent a larger percentage of total revenue.
- Product Category and Geographic Expansion: Leveraging the Helly Hansen acquisition, Kontoor Brands plans to diversify its product mix through category extensions, such as technical outdoor, footwear, and workwear. Additionally, the company is focusing on international expansion, particularly in regions like EMEA and China, and is expanding brands like Wrangler into new categories such as outdoor and workwear with lines like Wrangler ATG.
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Capital Allocation Decisions for Kontoor Brands (KTB)
Share Repurchases
- Kontoor Brands authorized a new share repurchase program of up to $300 million in December 2023, replacing a previous $200 million authorization from August 2021.
- The company repurchased $25 million of common stock during the fourth quarter of 2025.
- For the full year 2025, approximately $140 million was returned to shareholders through dividends and share repurchases.
Outbound Investments
- Kontoor Brands completed the acquisition of Helly Hansen for a cash consideration of $957.5 million (CAD 1.3 billion) in 2025, which was funded by debt and cash on hand.
- The Helly Hansen acquisition was a significant strategic move, contributing to a transformational year for Kontoor Brands in 2025.
Capital Expenditures
- Capital expenditures are expected to be approximately $45 million for 2026.
- Annual capital expenditures for 2024 were $22.122 million, representing a 40.82% decrease from the previous year.
- In 2023, annual capital expenditures for Kontoor Brands were $37.384 million.
Peer Outperformance in Apparel, Accessories & Luxury Goods
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| KTB | Kontoor Brands | 7.1% | 15.8x | 7.8% | 74.0% | 61.1% | — |
| RL | Ralph Lauren | 9.1% | 24.1x | 26.6% | 257.2% | 253.6% | +193pp |
| TPR | Tapestry | 6.5% | 15.9x | 15.3% | 362.6% | 228.6% | +168pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Education Services | 14 | 0.1% | 34.3% | 72.3% | CVSA 238% · GHC 107% · LRN 103% |
| Homebuilding | 17 | 1.3% | 26.1% | 31.2% | PHM 175% · TOL 160% · CVCO 150% |
| Hotels, Resorts & Cruise Lines | 21 | 23.2% | 62.4% | 17.1% | RCL 261% · MAR 164% · HLT 154% |
| Automotive Retail | 17 | -1.9% | 11.9% | 8.5% | MUSA 207% · PAG 119% · ORLY 117% |
| Home Improvement Retail | 5 | -9.3% | 16.3% | 0.6% | HD 3% · LOW 1% · FND -66% |
| Home Furnishings | 3 | 1.8% | 71.0% | 0.0% | SGI 52% · MHK -18% |
| Footwear | 9 | 85.9% | 83.0% | -11.4% | DECK 24% · SHOO 1% · CROX -11% |
| Restaurants | 36 | 4.1% | -5.9% | -14.7% | EAT 401% · CAKE 191% · TXRH 127% |
| Specialized Consumer Services | 10 | -6.1% | 37.2% | -17.5% | HRB 159% · FTDR 124% · ADT 25% |
| Distributors | 4 | -7.0% | -16.6% | -24.9% | ARMK 111% · GPC 7% · POOL -57% |
| Leisure Products | 14 | -11.7% | -13.3% | -34.4% | GOLF 71% · HAS 53% · BC -11% |
| Household Appliances | 18 | 13.7% | 18.3% | -34.9% | |
| Leisure Facilities | 12 | -5.8% | 1.2% | -41.8% | OSW 167% · LTH 153% · PLNT -33% |
| Computer & Electronics Retail | 3 | 21.3% | 61.7% | -45.0% | BBY -5% · GME -56% |
| Apparel Retail | 27 | -0.7% | 2.1% | -45.7% | ANF 240% · TJX 116% · ROST 108% |
| Broadline Retail | 12 | -1.6% | 19.8% | -46.4% | EBAY 72% · AMZN 48% · OLLI 21% |
| Automotive Parts & Equipment | 37 | -14.4% | -27.4% | -46.7% | GTX 200% · PATK 71% · ALV 36% |
| Apparel, Accessories & Luxury Goods ← | 29 | 11.0% | 29.3% | -50.7% | RL 254% · TPR 229% · KTB 61% |
| Casinos & Gaming | 21 | -23.6% | -18.7% | -52.4% | MCRI 79% · RRR 31% · BYD 19% |
| Other Specialty Retail | 25 | -7.7% | -15.4% | -58.1% | ULTA 66% · ASO 35% · DKS 17% |
| Automobile Manufacturers | 8 | -14.9% | -45.7% | -71.0% | GM 65% · TSLA -2% · F -10% |
| Consumer Electronics | 11 | -36.6% | -36.2% | -81.0% | GRMN 110% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 48.88 |
| Mkt Cap | 4.2 |
| Rev LTM | 6,215 |
| Op Inc LTM | 599 |
| FCF LTM | 527 |
| FCF 3Y Avg | 430 |
| CFO LTM | 715 |
| CFO 3Y Avg | 573 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 7.9% |
| Rev Chg 3Y Avg | 4.0% |
| Rev Chg Q | 5.9% |
| QoQ Delta Rev Chg LTM | 1.4% |
| Op Inc Chg LTM | 28.3% |
| Op Inc Chg 3Y Avg | 18.5% |
| Op Mgn LTM | 10.5% |
| Op Mgn 3Y Avg | 9.5% |
| QoQ Delta Op Mgn LTM | 0.7% |
| CFO/Rev LTM | 11.6% |
| CFO/Rev 3Y Avg | 9.9% |
| FCF/Rev LTM | 7.4% |
| FCF/Rev 3Y Avg | 6.4% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 4.2 |
| P/S | 1.1 |
| P/Op Inc | 11.2 |
| P/EBIT | 11.2 |
| P/E | 15.2 |
| P/CFO | 9.3 |
| Total Yield | 7.8% |
| Dividend Yield | 2.2% |
| FCF Yield 3Y Avg | 7.9% |
| D/E | 0.4 |
| Net D/E | 0.4 |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Wrangler | 1,915 | 1,806 | 1,754 | 1,746 | 1,575 |
| Lee | 750 | 791 | 843 | 874 | 887 |
| Helly Hansen | 460 | 0 | |||
| Other | 28 | 11 | 11 | 11 | 14 |
| Total | 3,152 | 2,608 | 2,607 | 2,631 | 2,476 |
| $ Mil | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|
| All other assets | 1,145 | ||||
| Wrangler | 336 | 527 | 395 | 320 | 378 |
| Lee | 160 | 283 | 248 | 221 | 239 |
| Other inventories | 5 | ||||
| Cash and cash equivalents | 59 | 185 | 248 | 107 | |
| Deferred income taxes | 67 | 75 | 85 | 80 | |
| Goodwill and intangible assets | 223 | 227 | 229 | 230 | |
| Operating lease assets | 51 | 55 | 60 | 87 | |
| Other accounts receivable and inventories | 14 | 10 | 31 | 70 | |
| Other assets | 154 | 161 | 150 | 111 | |
| Prepaid expenses and other current assets | 100 | 73 | 81 | 84 | |
| Property, plant, and equipment, net | 104 | 105 | 119 | 132 | |
| Total | 1,645 | 1,582 | 1,533 | 1,546 | 1,517 |
Price Behavior
| Market Price | $76.92 | |
| Market Cap ($ Bil) | 4.2 | |
| First Trading Date | 05/09/2019 | |
| Distance from 52W High | -12.1% | |
| 50 Days | 200 Days | |
| DMA Price | $70.29 | $71.99 |
| DMA Trend | down | up |
| Distance from DMA | 9.4% | 6.9% |
| 3M | 1YR | |
| Volatility | 41.6% | 48.2% |
| Downside Capture | 123.08 | 76.11 |
| Upside Capture | 94.50 | 65.01 |
| Correlation (S&P 500) | 12.3% | 20.7% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.02 | 0.24 | 0.43 | 0.61 | 0.76 | 1.03 |
| Up Beta | -3.94 | -1.73 | -1.01 | 0.03 | 1.51 | 1.45 |
| Down Beta | 0.89 | 0.52 | 0.43 | 0.82 | 0.54 | 0.68 |
| Up Capture | 138% | 40% | 47% | 67% | 41% | 83% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 13 | 21 | 31 | 65 | 123 | 387 |
| Down Capture | -131% | 45% | 118% | 72% | 75% | 98% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 9 | 22 | 33 | 61 | 127 | 363 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KTB | |
|---|---|---|---|---|
| KTB | -2.1% | 48.2% | 0.10 | - |
| Sector ETF (XLY) | -1.6% | 19.1% | -0.22 | 35.2% |
| Equity (SPY) | 11.6% | 12.8% | 0.57 | 19.7% |
| Gold (GLD) | -2.4% | 28.6% | -0.10 | -1.2% |
| Commodities (DBC) | 42.0% | 20.9% | 1.56 | -25.0% |
| Real Estate (VNQ) | 10.6% | 13.7% | 0.48 | 35.5% |
| Bitcoin (BTCUSD) | -29.9% | 43.5% | -0.70 | 4.1% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KTB | |
|---|---|---|---|---|
| KTB | 10.7% | 43.9% | 0.36 | - |
| Sector ETF (XLY) | 4.3% | 24.1% | 0.14 | 47.0% |
| Equity (SPY) | 12.0% | 17.1% | 0.52 | 43.1% |
| Gold (GLD) | 16.5% | 19.0% | 0.69 | 3.3% |
| Commodities (DBC) | 8.3% | 19.6% | 0.31 | 2.7% |
| Real Estate (VNQ) | 1.0% | 18.9% | -0.06 | 37.8% |
| Bitcoin (BTCUSD) | 5.0% | 51.5% | 0.28 | 18.5% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KTB | |
|---|---|---|---|---|
| KTB | 9.6% | 49.9% | 0.43 | - |
| Sector ETF (XLY) | 12.5% | 22.2% | 0.51 | 46.9% |
| Equity (SPY) | 15.2% | 17.9% | 0.71 | 45.8% |
| Gold (GLD) | 11.5% | 16.5% | 0.57 | 1.0% |
| Commodities (DBC) | 7.8% | 18.1% | 0.34 | 12.4% |
| Real Estate (VNQ) | 5.4% | 20.7% | 0.22 | 42.6% |
| Bitcoin (BTCUSD) | 61.1% | 66.2% | 1.01 | 13.9% |
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Earnings Returns History
Updated 10/22/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/12/2026 | 8.9% | 9.8% | -11.1% |
| 5/7/2026 | 4.2% | -13.0% | -6.5% |
| 3/3/2026 | 20.6% | 12.5% | 9.2% |
| 11/3/2025 | -9.2% | -10.8% | -3.3% |
| 8/7/2025 | 12.8% | 24.7% | 41.5% |
| 5/6/2025 | 1.8% | 14.5% | 6.6% |
| 2/25/2025 | -13.5% | -26.7% | -25.0% |
| 10/31/2024 | 11.8% | 12.9% | 19.9% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 17 | 14 | 12 |
| # Negative | 7 | 10 | 12 |
| Median Positive | 8.4% | 11.3% | 15.4% |
| Median Negative | -9.0% | -8.0% | -6.1% |
| Max Positive | 20.6% | 24.7% | 41.5% |
| Max Negative | -13.5% | -26.7% | -25.0% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 8/12/2026 | 8.9% | 9.8% | -11.1% |
| 5/7/2026 | 4.2% | -13.0% | -6.5% |
| 3/3/2026 | 20.6% | 12.5% | 9.2% |
| 11/3/2025 | -9.2% | -10.8% | -3.3% |
| 8/7/2025 | 12.8% | 24.7% | 41.5% |
| 5/6/2025 | 1.8% | 14.5% | 6.6% |
| 2/25/2025 | -13.5% | -26.7% | -25.0% |
| 10/31/2024 | 11.8% | 12.9% | 19.9% |
| 8/1/2024 | 2.7% | -3.8% | 6.0% |
| 5/2/2024 | 8.4% | 8.2% | 18.0% |
| 2/28/2024 | -9.0% | -4.4% | -5.7% |
| 11/2/2023 | 4.8% | 9.1% | 19.2% |
| 8/3/2023 | 17.7% | 14.7% | 12.7% |
| 5/4/2023 | -7.6% | -9.3% | -9.4% |
| 2/28/2023 | 19.9% | 16.3% | 11.1% |
| 11/3/2022 | 10.5% | 3.4% | 30.7% |
| 8/4/2022 | 4.0% | 2.5% | -0.6% |
| 5/5/2022 | -0.3% | -1.8% | -2.2% |
| 3/1/2022 | -9.2% | -18.8% | -7.9% |
| 11/4/2021 | 1.9% | 3.6% | -5.2% |
| 8/5/2021 | -2.5% | -0.5% | -6.9% |
| 5/6/2021 | 5.1% | -6.7% | -1.3% |
| 3/2/2021 | 7.7% | 14.2% | 11.5% |
| 10/29/2020 | 11.2% | 10.1% | 38.2% |
| SUMMARY STATS | |||
| # Positive | 17 | 14 | 12 |
| # Negative | 7 | 10 | 12 |
| Median Positive | 8.4% | 11.3% | 15.4% |
| Median Negative | -9.0% | -8.0% | -6.1% |
| Max Positive | 20.6% | 24.7% | 41.5% |
| Max Negative | -13.5% | -26.7% | -25.0% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/12/2026 | 10-Q |
| 03/31/2026 | 05/14/2026 | 10-Q |
| 12/31/2025 | 03/04/2026 | 10-K |
| 09/30/2025 | 11/03/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-Q |
| 03/31/2025 | 05/06/2025 | 10-Q |
| 12/31/2024 | 02/25/2025 | 10-K |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/01/2024 | 10-Q |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/28/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 03/01/2023 | 10-K |
| 09/30/2022 | 11/04/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/12/2026 | 10-Q |
| 03/31/2026 | 05/14/2026 | 10-Q |
| 12/31/2025 | 03/04/2026 | 10-K |
| 09/30/2025 | 11/03/2025 | 10-Q |
| 06/30/2025 | 08/07/2025 | 10-Q |
| 03/31/2025 | 05/06/2025 | 10-Q |
| 12/31/2024 | 02/25/2025 | 10-K |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/01/2024 | 10-Q |
| 03/31/2024 | 05/02/2024 | 10-Q |
| 12/31/2023 | 02/28/2024 | 10-K |
| 09/30/2023 | 11/08/2023 | 10-Q |
| 06/30/2023 | 08/03/2023 | 10-Q |
| 03/31/2023 | 05/04/2023 | 10-Q |
| 12/31/2022 | 03/01/2023 | 10-K |
| 09/30/2022 | 11/04/2022 | 10-Q |
| 06/30/2022 | 08/08/2022 | 10-Q |
| 03/31/2022 | 05/09/2022 | 10-Q |
| 12/31/2021 | 03/02/2022 | 10-K |
| 09/30/2021 | 11/08/2021 | 10-Q |
| 06/30/2021 | 08/09/2021 | 10-Q |
| 03/31/2021 | 05/12/2021 | 10-Q |
| 12/31/2020 | 03/03/2021 | 10-K |
| 09/30/2020 | 11/06/2020 | 10-Q |
| 06/30/2020 | 08/07/2020 | 10-Q |
| 03/31/2020 | 05/08/2020 | 10-Q |
| 12/31/2019 | 03/11/2020 | 10-K |
| 09/30/2019 | 11/12/2019 | 10-Q |
Recent Forward Guidance
Updated 11/2/2026Latest: Q2 2026 Earnings Reported 8/12/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Other Expense | Reported | 14.00 Mil | ||||||
| 2026 Total Cash from Operations | Reported | 450.00 Mil | 0 | Affirmed | Guidance: 450.00 Mil for 2026 | |||
| 2026 Revenue | Reported | 2.66 Bil | 2.69 Bil | 2.71 Bil | 0 | Affirmed | Guidance: 2.69 Bil for 2026 | |
| 2026 Gross Profit | Calculated | 1.32 Bil | 1.34 Bil | 1.35 Bil | Rev x Gross Margin | |||
| 2026 Adjusted Gross Margin | Reported | 49.8% | 49.9% | 50.0% | 1.5% | Raised | Guidance: 48.4% for 2026 | |
| 2026 Adjusted Operating Income | Reported | 413.00 Mil | 416.50 Mil | 420.00 Mil | 0.5% | Raised | Guidance: 414.50 Mil for 2026 | |
| 2026 Interest Expense | Reported | 56.00 Mil | 1.8% | Raised | Guidance: 55.00 Mil for 2026 | |||
| 2026 Adjusted EPS | Reported | 5.25 | 5.3 | 5.35 | 1.9% | Raised | Guidance: 5.2 for 2026 | |
| 2026 Average Shares Outstanding | Reported | 55.50 Mil | ||||||
| 2026 Capital Expenditures | Reported | 30.00 Mil | -25.0% | Lowered | Guidance: 40.00 Mil for 2026 | |||
Prior: Q1 2026 Earnings Reported 5/7/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Cash from operations | Reported | 450.00 Mil | 5.9% | Raised | Guidance: 425.00 Mil for 2026 | |||
| 2026 Revenue | Reported | 3.41 Bil | 3.44 Bil | 3.46 Bil | 0.3% | Raised | Guidance: 3.42 Bil for 2026 | |
| 2026 Revenue from continuing operations | Reported | 2.66 Bil | 2.69 Bil | 2.71 Bil | ||||
| 2026 Gross Profit | Calculated | 1.65 Bil | 1.66 Bil | 1.68 Bil | Rev x Gross Margin | |||
| 2026 Adjusted gross margin | Reported | 48.3% | 48.4% | 48.5% | 1.1% | Raised | Guidance: 47.3% for 2026 | |
| 2026 Adjusted operating income | Reported | 411.00 Mil | 414.50 Mil | 418.00 Mil | -18.6% | Lowered | Guidance: 509.00 Mil for 2026 | |
| 2026 Interest expense | Reported | 55.00 Mil | 0 | Affirmed | Guidance: 55.00 Mil for 2026 | |||
| 2026 Adjusted EPS | Reported | 6.6 | 6.65 | 6.7 | 3.1% | Raised | Guidance: 6.45 for 2026 | |
| 2026 Adjusted EPS from continuing operations | Reported | 5.15 | 5.2 | 5.25 | ||||
| 2026 Capital expenditures | Reported | 40.00 Mil | -11.1% | Lowered | Guidance: 45.00 Mil for 2026 | |||
Q4 2025 Earnings Reported 3/3/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Cash from operations | Reported | 425.00 Mil | 6.2% | Higher New | Guidance: 400.00 Mil for 2025 | |||
| 2026 Revenue | Reported | 3.40 Bil | 3.42 Bil | 3.45 Bil | 10.3% | Higher New | Guidance: 3.10 Bil for 2025 | |
| 2026 Adjusted Gross Margin | Reported | 47.2% | 47.3% | 47.4% | 0.9% | Higher New | Guidance: 46.4% for 2025 | |
| 2026 Adjusted Operating Income | Reported | 506.00 Mil | 509.00 Mil | 512.00 Mil | 13.4% | Higher New | Guidance: 449.00 Mil for 2025 | |
| 2026 Interest expense | Reported | 55.00 Mil | ||||||
| 2026 Effective tax rate | Reported | 20.0% | ||||||
| 2026 Adjusted EPS | Reported | 6.4 | 6.45 | 6.5 | 17.3% | Higher New | Guidance: 5.5 for 2025 | |
| 2026 Average shares outstanding | Reported | 56.00 Mil | ||||||
| 2026 Capital expenditures | Reported | 45.00 Mil | ||||||
Q3 2025 Earnings Reported 11/3/2025
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2025 Cash from Operations | Reported | 400.00 Mil | 6.7% | Raised | Guidance: 375.00 Mil for 2025 | |||
| 2025 Revenue | Reported | 3.09 Bil | 3.10 Bil | 3.12 Bil | 0 | Affirmed | Guidance: 3.10 Bil for 2025 | |
| 2025 Revenue Growth | Reported | 19.0% | 19.5% | 20.0% | 0 | Affirmed | Guidance: 19.5% for 2025 | |
| 2025 Adjusted Gross Margin | Reported | 46.4% | 0.3% | Raised | Guidance: 46.1% for 2025 | |||
| 2025 Adjusted Operating Income | Reported | 449.00 Mil | 1.4% | Raised | Guidance: 443.00 Mil for 2025 | |||
| 2025 Adjusted EPS | Reported | 5.5 | 0.9% | Raised | Guidance: 5.45 for 2025 | |||
| Q4 2025 Revenue | Reported | 970.00 Mil | 975.00 Mil | 980.00 Mil | ||||
| Q4 2025 Adjusted EPS | Reported | 1.64 | ||||||
Insider Activity
Updated 9/24/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Baxter, Scott H | Chairman and CEO | Direct | Sell | 8172026 | 83.40 | 184,403 | 15,378,330 | 21,831,728 | Form |
| 2 | Doerr, Thomas L JR | EVP, GC, & Secretary | Direct | Sell | 8142026 | 83.43 | 7,660 | 639,097 | 2,091,072 | Form |
| 3 | Broyles, Jennifer H | EVP, Global Brands President | Direct | Sell | 6152026 | 81.02 | 4,000 | 324,080 | 3,261,927 | Form |
| 4 | Alkire, Joseph A | EVP, CFO & Head of Operations | Direct | Sell | 11122025 | 72.35 | 3,000 | 217,063 | 1,817,972 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Baxter, Scott H | Chairman and CEO | Direct | Sell | 8172026 | 83.40 | 184,403 | 15,378,330 | 21,831,728 | Form |
| 2 | Doerr, Thomas L JR | EVP, GC, & Secretary | Direct | Sell | 8142026 | 83.43 | 7,660 | 639,097 | 2,091,072 | Form |
| 3 | Broyles, Jennifer H | EVP, Global Brands President | Direct | Sell | 6152026 | 81.02 | 4,000 | 324,080 | 3,261,927 | Form |
| 4 | Alkire, Joseph A | EVP, CFO & Head of Operations | Direct | Sell | 11122025 | 72.35 | 3,000 | 217,063 | 1,817,972 | Form |
KTB Trade Sentinel
High Conviction
CONVICTION RATIONALE
Kontoor is successfully executing a portfolio transformation, divesting its Lee brand to focus on the cash-generative Wrangler and high-growth Helly Hansen. Raised 2026 guidance for gross margin (to 50.0%) and EPS (to $5.35) reflects this progress. A planned $400 million share repurchase provides a clear catalyst upon the deal's Q4 close.
STOCK ARCHETYPE
Branded Consumer GoodsVolume of units sold x Average Selling Price (ASP) Mix shift towards the higher-margin Helly Hansen brand and direct-to-consumer channel, combined with cost savings from Project Jeanius.
INVESTMENT THESIS
Evidence suggests yes. Divesting Lee to focus on Wrangler and high-growth Helly Hansen is expanding margins and funding a large, imminent capital return.
- Full-year adjusted gross margin guidance was raised to a range of 49.8% to 50.0%.
- The Lee divestiture is on track to close in Q4 2026.
- A new $400 million accelerated share repurchase is planned post-divestiture.
- Wrangler gained over 100 basis points of share in its core bottoms business in Q2.
- Helly Hansen global revenue increased 6% on a pro forma basis in Q2 2026.
PRIMARY RISK
Wrangler's global revenue growth has slowed to 1%, lagging key peers. The complex Lee divestiture carries execution risk, requiring mitigation of approximately $40 million in stranded costs over 12-18 months. A failure here could stall the value creation story.
- Wrangler's global revenue increased by only 1% in Q2 2026.
- Peer Levi Strauss reported 6% organic net revenue growth in its recent quarter.
- The company must offset approximately $40 million of stranded costs post-divestiture.
- Sales to the top customer, Walmart, accounted for 30% of 2025 net revenues.
| KPI | Status | Rationale |
|---|---|---|
| Wrangler Global Revenue Growth | 1% constant currency growth in Q2 2026. - Decelerating | Growth has slowed sequentially over the past three quarters, though it remains positive. Management highlighted that the latest quarter's growth was driven by a 12% increase in the direct-to-consumer channel, with strength in the female and Western categories, while the U.S. wholesale channel was flat. |
| Helly Hansen Global Revenue Growth (pro forma) | 6% pro forma growth in Q2 2026. - Decelerating | Management noted that the 6% growth exceeded internal expectations and that the business is on track for mid-single-digit growth in the second half. The CFO stated that the first half's 12% reported pro forma growth implies a mid-single-digit underlying constant currency rate, suggesting the Q2 performance is more in line with the sustainable trend. |
| Wrangler Market Share Gains (Circana) | Gained over 100 basis points of share in its core bottoms business. (Q2 2026) | Indicates the core Wrangler brand is successfully competing and taking share from rivals in its primary product category, validating its product and marketing strategies. |
| Inventory vs. Revenue Growth Divergence | -41.9 percentage points (Q2 2026) | A large negative divergence, where inventory is shrinking (-23.3%) while revenue is growing (+18.6%), signals strong inventory management, healthy sell-through, and a reduced risk of future markdowns or excess inventory issues. |
Transformation vs. Core Brand Slowdown
BULL VIEW
Bulls focus on the successful portfolio shift, with raised margin guidance to 50.0% and a $400 million buyback funded by the Lee sale, believing this creates more value than the core brand's slow growth destroys.
CORE TENSION
Can margin expansion and a $400M buyback offset Wrangler's 1% growth, which the market rewarded?
PREVAILING SENTIMENT
The bull case. The market's 12% post-earnings rally rewarded raised guidance and the clear capital return plan, prioritizing the transformation's financial impact over the top-line slowdown.
BEAR VIEW
Bears see Wrangler's decelerating 1% growth, which lags peers, as a structural problem. They worry the transformation is a complex financial maneuver that masks fundamental weakness in the primary profit engine.
| Timeline | Event & Metric To Watch |
|---|---|
September 18, 2026 | Quarterly Dividend Payment Watch: A regular quarterly cash dividend of $0.53 per share will be payable to shareholders. |
10/7/2026 | Negative Peer Read-Across Watch: Commentary on consumer demand, channel inventory, and gross margin trends from LEVI, VFC, and BOOT earnings reports. |
10/26/2026 | VF Corp Earnings Report Watch: Peer company VF (VFC) is scheduled to report earnings. |
10/27/2026 | Boot Barn Earnings Report Watch: Peer company Boot Barn (BOOT) is scheduled to report earnings. |
in the fourth quarter | Lee Divestiture Stranded Costs Watch: Updates on the transaction closing and progress on mitigating the $40 million in stranded overhead costs. |
No set date | Tariff Impact On Margins Watch: Any deviation from the guided 15% tariff rate or announcements of new trade actions impacting gross margin guidance. |
September 2 in Norway | Helly Hansen Investor Day Watch: The company will host an investor day focused on the Helly Hansen brand in Oslo, Norway. |
| Date | Event | Stock Impact |
|---|---|---|
2026-08-12 | CFO Promoted to President Details: Joseph Alkire was appointed to the expanded role of President and Chief Financial Officer, with oversight of both the Wrangler and Helly Hansen brands. | +12.1% $74.96 -> $84.04 |
2026-08-12 | Q2 2026 Results, Raised Outlook Details: The company reported Q2 results, raised its full-year Adjusted EPS guidance to a new midpoint of $5.30, and announced plans for a $400 million ASR. | +12.1% $74.96 -> $84.04 |
2026-07-24 | Quarterly Dividend Declared Details: The Board of Directors declared a regular quarterly cash dividend of $0.53 per share, payable on September 18, 2026. | +2.9% $83.37 -> $85.78 |
2026-07-22 | New Director Elected Details: Tom Waldron was elected to the company's Board of Directors, increasing the size of the board from six to seven directors. | -2.3% $85.30 -> $83.37 |
2026-05-28 | Wrangler Brand Collaboration Details: The Wrangler brand announced its second apparel collection with Coors Banquet, featuring 23 unique pieces for men and women. | -1.9% $72.61 -> $71.23 |
2026-05-07 | Lee Brand Divestiture Announced Details: The company announced a plan to divest the Lee brand and a new $750 million share repurchase program. The stock had a two-day reaction of -2.0%. | -1.7% $74.37 -> $73.09 |
2026-03-03 | Q4 2025 Results Reported Details: The company reported full-year 2025 results and provided its initial 2026 outlook. The stock had a two-day reaction of 20.0% around the earnings call. | +20.4% $63.86 -> $76.90 |
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: KTB trades at roughly 41% annualized options-implied volatility versus about 13% for the S&P 500 (3.3x the market), around the 40th percentile of its own trailing year. A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
LEVI - a business partner
Pure-Play Denim Leadera business partner offers greater scale in the global denim market, with revenue 2.2 times that of Kontoor, and a significantly higher gross margin of 61.7%, indicating stronger brand pricing power.
VFC - VF
Diversified Outdoor ApparelVF Corp provides exposure to a much larger and more diversified portfolio of outdoor and lifestyle brands, including The North Face. Its revenue is 3.1 times Kontoor's, offering broader market participation.
A focused, two-brand apparel company (Wrangler, Helly Hansen) executing a portfolio transformation to accelerate growth and margins, funded by the stable cash flows of its iconic denim business.
Kontoor is in an inflection point, divesting its Lee brand to sharpen focus on its two core assets: the cash-generative, market-share-gaining Wrangler brand and the high-growth, higher-margin Helly Hansen outdoor brand. The company is using its operational efficiency program, Project Jeanius, to fund investments in growth areas like Wrangler's female category and Helly Hansen's U.S. expansion. Proceeds from the Lee sale are earmarked for significant capital returns, including a large share buyback.
Sustained market share gains in Wrangler, accelerated revenue growth in Helly Hansen (especially in the U.S.), and successful completion of the Lee divestiture followed by the announced share repurchase.
A slowdown in Wrangler's core business, failure to achieve growth targets for Helly Hansen, or significant delays/complications in the Lee divestiture and subsequent capital return.
Quarter-to-quarter volatility in wholesale channel shipments, which management has noted can be affected by timing shifts.
Repricing Catalyst
The successful divestiture of the Lee brand, expected in Q4 2026, which will unlock proceeds for a planned $400 million accelerated share repurchase (ASR) and debt paydown, clarifying the company's future earnings power and capital return profile.
Wrangler
$1.9B TTM (61% of Total)What It Is
Sells denim, apparel, footwear, and accessories under the Wrangler brand and its sub-brands (e.g., Cowboy Cut, Riggs Workwear) to mass merchants, specialty stores, department stores, and end-consumers through wholesale and direct-to-consumer channels in the U.S. and internationally.
Who Pays & How
Wholesale retailers like Walmart, Target, and Boot Barn pay for Wrangler products to stock their stores, relying on the brand's iconic status, quality, and deep customer relationships to drive sales. Consumers pay for the brand's authentic western heritage and value proposition.
Competition
Helly Hansen
$460M TTM (15% of Total)What It Is
Sells technical outdoor and workwear apparel, footwear, and accessories to outdoor/sporting goods stores, specialty retailers, and end-consumers through wholesale and direct-to-consumer channels globally. The brand is known for professional-grade products for activities like skiing and sailing.
Who Pays & How
Wholesale customers, including independent specialty retailers and national ski resorts like Vail Resorts, pay for Helly Hansen's innovative, technical products engineered for demanding environments. Consumers pay for its reputation for high-performance gear and protection.
Competition
Industry Resources
| Consumer Discretionary Resources |
| Retail Dive |
| Business of Fashion (BoF) |
| WWD (Women's Wear Daily) |
| National Retail Federation (NRF) |
| McKinsey & Company - Consumer |
| Mintel Consumer Trends |
| Apparel, Accessories & Luxury Goods Resources |
| Vogue Business |
| Jing Daily |
| Luxury Daily |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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