Kontoor Brands, Inc. (KTB)

Price$73.59Cached quoteAs of 2026-09-05 08:49 UTC

AI: Undervalued

Price checkThe shares look modestly undervalued if current earnings guidance proves durable.

At the observed market level, the midpoint of management’s 2026 adjusted earnings guidance, which removes specified unusual items, implies about 13.6 times earnings; investors therefore pay roughly $13.60 for each dollar of expected annual profit. Guidance of $5.25-$5.35 per share excludes future repurchases, while the planned $400 million accelerated buyback equals roughly one-tenth of current market value. That looks inexpensive if earnings hold, although acquisition debt and successful recycling of Lee proceeds remain important conditions. ChartMill+2Kontoor Brands, Inc.+2

Big pictureCash generation has improved, but the Helly Hansen acquisition made the balance sheet much heavier.

Revenue stayed near $2.5-$2.6 billion from fiscal 2021 through 2024. Free cash flow—cash left after operating and capital spending—was about $435 million in 2025 but only $65 million in 2022, showing that cash conversion can swing sharply. The supplied history shows net debt, meaning debt minus cash, rising from $457 million at 2024 year-end to $1.21 billion by Q2 2026 after Helly Hansen. First-half operating cash flow was about $94 million, so the roughly $450 million full-year target requires a strong second half. Pasted text Kontoor Brands, Inc.

Business strengthWrangler is steady while Helly Hansen adds faster growth and improving profitability.

Second-quarter continuing revenue rose 19% to $584 million, with Wrangler up 2% and Helly Hansen contributing $114 million. Adjusted gross margin—the share of sales left after product costs—reached 53.8%, up 7.1 percentage points, while adjusted operating margin was 16%. Wrangler’s U.S. wholesale sales were flat, so growth is not universal. Helly Hansen’s 2030 plan targets more than $1.1 billion of revenue from $675 million in 2025 and mid-teens operating margins, but management explicitly describes those long-range targets as assumption-heavy and aspirational. Kontoor Brands, Inc.+1

What could change the storyLee proceeds can shrink shares and debt, but execution must offset lost earnings.

The Lee sale is expected to deliver $750 million at closing, plus a possible $250 million earnout. Kontoor plans to put $400 million into a rapid share repurchase and use remaining proceeds for voluntary debt payments; it also expects Lee’s removal to be roughly neutral to per-share earnings within 12-18 months through capital deployment and cost actions. The supplied history shows shares outstanding already declined from about 57.3 million in fiscal 2020 to 54.7 million in Q2 2026. Failure to close, deleverage, or replace Lee earnings would weaken the undervaluation case. Kontoor Brands, Inc.+2Kontoor Brands, Inc.+2

AI: News

Helly Hansen 2030 targetsKontoor outlined ambitious Helly Hansen growth targets that could materially raise its long-term earnings power.

On September 2, Kontoor targeted more than $1.1 billion of Helly Hansen revenue by 2030, versus $675 million pro forma in fiscal 2025, implying about 10% annual growth. It also targets gross margins in the mid-to-high 50% range, mid-teens operating margins, and more than $500 million of cumulative cash generation through 2030. Shares closed about 2.9% lower that day, although timing alone cannot establish that the investor-day announcement caused the decline. Kontoor Brands, Inc.+1

Q2 beat and raiseSecond-quarter results beat expectations, management raised earnings guidance, and announced a large planned buyback.

On August 12, continuing revenue increased 19% to $584 million and adjusted earnings per share rose 13% to $1.06. Management lifted full-year adjusted earnings guidance to $5.25-$5.35 and said it expects a $400 million rapid share repurchase after the Lee sale closes. The stock finished about 8.9% higher that day. The timing is consistent with a favorable reaction, but it does not prove that these announcements alone caused the move. Kontoor Brands, Inc.+1

Lee sale agreementSelling Lee unlocks cash for buybacks and debt reduction while concentrating the portfolio.

On May 21, Kontoor announced an agreement to sell Lee to Authentic Brands Group for $750 million in cash at closing plus a potential $250 million five-year earnout. The transaction remains subject to closing conditions and regulatory approvals. Management later said $400 million of expected proceeds would fund share repurchases, with remaining proceeds directed toward debt. Shares rose about 6.6% on the announcement date, but that same-day move should not be treated as proof of causation. Kontoor Brands, Inc.+1

Loading local price history

Revenue

2017

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2017

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2017

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017
Revenue	$3.15B	$2.61B	$2.61B	$2.63B	$2.48B	$2.10B	$2.55B	$2.76B	$2.83B
Gross profit	$1.42B	$1.16B	$1.09B	$1.13B	$1.11B	$863.7M	$1.00B	$1.11B	$1.17B
Gross margin	45.15%	44.55%	41.72%	43.11%	44.74%	41.17%	39.41%	40.32%	41.41%
Operating expenses	$2.82B	$2.27B	$2.29B	$2.27B	$2.19B	$1.97B	$2.38B	$2.43B	$2.47B
Operating income	$336.8M	$342.3M	$319.3M	$356.7M	$283.0M	$123.8M	$168.3M	$333.0M	$357.4M
Operating margin	10.68%	13.13%	12.24%	13.55%	11.43%	5.90%	6.60%	12.05%	12.63%
EBITDA	$384.6M	$384.9M	$357.3M	$393.8M	$319.6M	$158.3M	$199.1M	$364.1M	$391.0M
EBITDA margin	12.20%	14.76%	13.70%	14.96%	12.91%	7.55%	7.81%	13.17%	13.82%
Net income	$227.5M	$245.8M	$231.0M	$245.5M	$195.4M	$67.9M	$96.7M	$263.1M	$116.2M
Net profit margin	7.22%	9.43%	8.86%	9.33%	7.89%	3.24%	3.79%	9.52%	4.11%
Basic EPSper basic share	$4.10	$4.42	$4.13	$4.40	$3.40	$1.19	$1.71	$4.64	$2.05
Diluted EPSper diluted share	$4.05	$4.36	$4.06	$4.31	$3.31	$1.17	$1.69	$4.64	$2.05

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of KTB
Holder	Shares held
BlackRock, Inc.	8.1M
PNC Financial Services Group, Inc.	5.75M
VANGUARD PORTFOLIO MANAGEMENT LLC	3.39M
VANGUARD CAPITAL MANAGEMENT LLC	2.44M
JPMORGAN CHASE & CO	2.37M
STATE STREET CORP	2.12M
T. Rowe Price Investment Management, Inc.	1.97M
FMR LLC	1.83M
JENNISON ASSOCIATES LLC	1.6M
Invesco Ltd.	1.44M
GEODE CAPITAL MANAGEMENT, LLC	1.34M
Capital World Investors	1.31M
DIMENSIONAL FUND ADVISORS LP	1.3M
NOMURA ASSET MANAGEMENT INTERNATIONAL INC.	1.29M
MORGAN STANLEY	1.12M
NORTHERN TRUST CORP	1.01M
VICTORY CAPITAL MANAGEMENT INC	892.28K
GOLDMAN SACHS GROUP INC	871.32K
FULLER & THALER ASSET MANAGEMENT, INC.	758.74K
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	732.26K

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)10$15.38M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 12, 2026Form 4	Broyles Jennifer H.EVP, Global Brands President	SellCommon Stock	4.0K	$81.02	$324.1K	40.3K
Nov 10, 2025Form 4	ALKIRE JOSEPH AEVP, CFO & Head of Operations	SellCommon Stock	3.0K	$72.35	$217.0K	25.1K
Nov 20, 2024Form 4	Broyles Jennifer H.EVP, Global Brands President	SellCommon Stock · indirect	4.8K	$89.97	$429.0K	0
Nov 20, 2024Form 4	Broyles Jennifer H.EVP, Global Brands President	SellCommon Stock	4.3K	$89.97	$387.1K	37.5K
Nov 20, 2024Form 4	Broyles Jennifer H.EVP, Global Brands President	SellCommon Stock	4.8K	$89.97	$429.0K	41.8K

Review ownership filings at SEC.gov ↗

Community posts

View community

It’s quiet here.

No posts about KTB yet. Start the conversation.

Write the first post

Kontoor Brands, Inc. (KTB)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.