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Kontoor Brands, Inc.
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$3.7B
Market Cap
14.9
P/E
1.58
PEG
32.1%
ROCE
75.5%
ROE
2.22
D/E
10.7%
OPM
-25.0%
% from 52W High
30
α RS
🔍 KTB is showing a multi-screen setup because it matches 6 of 39 tracked screener presets, Sector RRG has Consumer Discretionary in the Leading quadrant with the trail still strengthening, and an ECS of 61.1 last quarter. The main caution: the Hidden Champions preset's Backtest win rate is only 44%. Net: Mixed signal stack, not a recommendation. ? Conviction RRG ECS Backtest
Sources
Conviction 6/39 · Consumer Discretionary in Leading quadrant · ECS 61.1 · Backtest win rate 44%
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📈 Price History
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— Poor
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About

Kontoor Brands, Inc., a lifestyle apparel company, designs, manufactures, procures, sells, and licenses apparel, footwear, and accessories, primarily under the Wrangler, Lee, and Helly Hansen brands. The company operates through two segments: Wrangler and Lee. It licenses and sells apparel under the Musto, Chic, and Rock & Republic brand names. The company sells its products through mass merchants, outdoor and sporting goods stores, specialty stores, department stores, company-operated stores, business-to-business through workwear and uniform businesses, and online, including digital marketplaces, as well as through wholesale and direct-to-consumer channels. 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.

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📈 Growth Pattern
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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 686.9K $48.3M 0.06% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Kontoor Brands divests Lee; focuses on Wrangler and Helly Hansen growth.
Revenue & Profitability
First quarter 2026 adjusted diluted EPS from continuing operations was $1.06, or $1.55 including discontinued operations. Wrangler global revenue grew 2% (U.S. +1%, international +9%). Helly Hansen global revenue grew 16% pro forma. Full-year adjusted operating income from continuing ops guided at $411M-$418M. Adjusted gross margin expanded 470 bps to 50.6%. The company recognized a $49 million reduction in COGS related to IEPA tariff refunds.
Outlook
Management sees large, growing addressable markets in outdoor, workwear, and denim with structural tailwinds. Consumer POS has been consistent despite macro volatility. Demand for premium workwear is increasing globally. Tariffs are a near-term headwind, but the company expects to recover IEPA duties and has accounted for reciprocal tariffs at 15% for the remainder of 2026.
Growth Drivers
Key growth levers include Wrangler's women's business (currently 10% of revenue), international expansion (Europe strong), DTC (digital and full-price stores), and new full-price stores (e.g., Austin, Texas). Helly Hansen growth is driven by U.S. expansion (aided awareness under 30%), workwear, technical outdoor apparel and footwear, and the Alps region. China JV revenue grew approximately 100% in Q1.
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Q1 adjusted gross margin expanded 470 bps to 50.6%, driven by Project Genius, Helly Hansen contribution, and channel mix. Full-year adjusted gross margin from continuing ops guided at 48.3%-48.5% (up 180-200 bps). Adjusted SG&A is expected to increase ~18%, including $35 million of unmitigated stranded costs. Helly Hansen's operating margin is expected to improve from high single digits to mid-teens over time.
Key Risks
Key risks include tariff exposure (reciprocal tariffs at 15% on applicable inventory receipts, with potential refunds from IEPA tariffs), execution of the Lee divestiture and mitigation of ~$40 million in stranded costs, and macro volatility. Input costs have risen more than planned but are incorporated in the outlook. Leverage is expected to be at or below 1.5x by year-end, with voluntary debt payments ahead of schedule.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-12
Second quarter results showed strong revenue and margin growth, with both Wrangler and Helly Hansen outperforming expectations. The Lee divestiture is on track, supporting significant capital returns and further deleveraging. Full-year guidance was raised on the back of robust first-half performance.
Q1 2026 Q1 2026 2026-05-07
Announced Lee brand divestiture to focus on Wrangler and Helly Hansen, driving higher growth and profitability. Q1 saw strong revenue and margin expansion, with robust guidance for 2026 and a new $750M share repurchase plan. Majority of Lee sale proceeds will fund buybacks.
Q4 2025 Q4 2025 2026-03-03
Record 2025 results driven by Helly Hansen acquisition and Wrangler growth, with strong cash flow and margin expansion. 2026 guidance calls for 9% revenue growth, higher EPS, and continued deleveraging, despite tariff headwinds.
Q3 2025 Q3 2025 2025-11-03
Q3 saw strong revenue and margin growth, led by Helly Hansen and continued Wrangler share gains, while Lee's digital and brand efforts showed early promise. Full-year guidance was raised for revenue, margin, and EPS, with deleveraging and Project Genius savings on track.
Q2 2025 Q2 2025 2025-08-07
Second quarter revenue grew 8% year-over-year, led by Wrangler's continued market share gains and strong Helly Hansen integration. Full-year revenue outlook was raised to 19%–20% growth, with adjusted EPS expected at $5.45 despite tariff headwinds.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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