Kontoor Brands, Inc. (KTB) AI Stock Analysis

Kontoor Brands, Inc. is a lifestyle apparel company that designs, manufactures, markets, and distributes denim, apparel, and accessories globally. Its brand portfolio includes Wrangler, Lee, and Rock & Republic. The company operates through two segments, Wrangler and Lee, serving customers via mass merchants, specialty stores, department stores, company-operated retail outlets, and online channels. Headquartered in Greensboro, North Carolina, Kontoor Brands operated 80 retail stores across the Americas, Europe, the Middle East, Africa, and the Asia-Pacific regions as of January 1, 2022.

Kontoor Brands generated an 8.5% five-year revenue CAGR from FY2020 to FY2025. Annual revenue grew from $2.48B in FY2021 to $2.63B in FY2022, remained flat at $2.61B in FY2024, and climbed 21.0% to $3.15B in FY2025. Operating margin rose from 11.4% in FY2021 to 14.1% in FY2025, alongside gross margin expansion to 46.7%. Net income was $227.5M in FY2025, yielding diluted EPS of $5.58. Over the trailing twelve months ended June 30, 2026, revenue totaled $3.43B with an operating margin of 15.5%. For the latest quarter, revenue grew 18.6% year-over-year while earnings dropped 11.4%.

As of June 30, 2026, Kontoor Brands had $58.5M in cash and short-term investments alongside total debt of $1.27B, resulting in net debt of $1.21B. Shareholders' equity stood at $618.5M, yielding a current ratio of 1.83 and a debt-to-equity ratio of 2.06. Operating cash flow in FY2025 reached $587.8M, yielding free cash flow of $566.7M. During FY2025, capital expenditures totaled $21.0M, share buybacks used $25.0M, and dividends paid accounted for $116.1M.

Kontoor Brands carries a market cap of $4.01B and an enterprise value of $4.80B. The stock trades at a trailing P/E of 17.9x, in line with the 18.0x median of its US-listed Consumer Cyclical peers, and a forward P/E of 14.5x compared to the peer median of 14.1x. Its EV/EBITDA of 10.1x is lower than the peer median of 11.1x, while its price-to-sales ratio of 1.2x exceeds the peer median of 0.7x. Over the past year, KTB fell 12.5%, trailing the S&P 500 gain of 16.8%, while its five-year gain of 77.0% compares to 83.0% for the S&P 500.

Kontoor Brands pays a quarterly dividend with an annualized forward rate of $2.12 per share, representing a 2.89% dividend yield. The company maintains a payout ratio of 37.0% and has paid dividends for 8 consecutive years. Its dividend has grown at an annualized rate of 16.8% over the past 5 years, with the last ex-dividend date occurring on September 8, 2026.

Consensus analyst ratings include 6 Strong Buy, 2 Buy, 1 Hold, and 1 Sell recommendations. The mean price target of $98.20 reflects a 34.0% premium over the October 16, 2026 closing price of $73.28. For the fiscal year ending December 31, 2026, analysts forecast EPS of $5.29 on revenue of $2.70B. Kontoor Brands beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is November 2, 2026.

This page is an AI-written research summary of Kontoor Brands, Inc. (KTB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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