KTB Research | Milton Maxwell

KTB

Kontoor Brands, Inc.

65.76

-0.25-0.38%

Dec 16, 4:00:02 PM EST

Upcoming Earnings

Report date

-/-

Earnings Call Transcripts

This Quarter (Q4 '25)

No earnings call transcript available yet

Last Quarter (Q3 '25)

FY Q3 '25

11/2/25Nov 2, 2025

Key Stats

Market Cap

3.66B

P/E (TTM)

16.95

Basic EPS (TTM)

3.88

Dividend Yield

0.03%

Recent Filings

10-Q

Q3 FY2025 results

11/3/25Nov 3, 2025

Kontoor Brands posted Q3 revenues of $853.2M, up 27% y/y from $670.2M, driven by $192.7M from the Helly Hansen acquisition closed May 31, 2025 for $932.8M cash (funded by debt and cash on hand), recognizing $518.7M goodwill and $454.5M intangibles including $400M indefinite-lived Helly Hansen trademarks. Operating income fell 35% y/y to $63.9M amid $38.1M restructuring charges from manufacturing closures and higher interest expense on $1.3B debt, yet Wrangler segment profit climbed 19% y/y to $116.4M. Gross margin slipped 340bps to 41.3% due to tariffs and restructuring. Cash dropped to $82.4M after the deal, with $493.7M revolver availability and covenant compliance. Diluted EPS reconciles at $0.66 ($36.9M net income / 56.1M shares). Integration ramps up. Tariffs pressure margins.

8-K

Q3 revenue surges 27%, outlook raised

11/3/25Nov 3, 2025

Kontoor Brands posted Q3 revenue of $853M, up 27% year-over-year despite a 2-point shipment timing shift, fueled by Helly Hansen integration. Adjusted operating income hit $122M, up 14%, with gross margin expanding 80bps to 45.8%. Raised full-year outlook: revenue at high end of $3.09-3.12B, adjusted EPS to $5.50. Debt repayments accelerate.

8-K

Quarterly dividend raised 2%

10/24/25Oct 24, 2025

Kontoor Brands declared a quarterly cash dividend of $0.53 per share on October 24, 2025, up 2% from the prior $0.01 increase. Payable December 18 to shareholders of record December 8, this signals board confidence in steady cash flows. Yet dividends remain subject to future declarations.

8-K

9/26/25Sep 26, 2025

8-K

Waldron's separation agreement signed

9/5/25Sep 5, 2025

Kontoor Brands finalized a separation agreement with former COO Thomas E. Waldron on August 31, 2025, effective after his September 30, 2025 departure, providing $1.35 million in severance over 18 months, pro-rated 2025 AIP eligibility, continued 2025 RSU and PRSU vesting, COBRA subsidies, and outplacement support. This ensures a smooth transition while binding Waldron to non-compete, non-solicitation, and confidentiality covenants for 18 months. Leadership continuity matters now.

About

Kontoor Brands, Inc., a lifestyle apparel company, designs, produces, procures, markets, distributes, and licenses denim, apparel, footwear, and accessories, primarily under the Wrangler and Lee brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Rock & Republic brand name. The company sells its products primarily through mass merchants, specialty stores, mid-tier and traditional department stores, company-operated stores, and online. It operates in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions. Kontoor Brands, Inc. was incorporated in 2018 and is headquartered in Greensboro, North Carolina.

CEO

Mr. Scott H. Baxter

IPO

5/28/2019

Website

https://www.kontoorbrands.com

Employees

13,200

Sector

Consumer Cyclical

Industry

Apparel Manufacturing