At a glance
Kontoor Brands Inc is worth $4.06B, about 18 times its fiscal 2025 earnings. Revenue grew 20.9% to $3.15B in fiscal 2025, with 7.2% kept as profit; over 5 years it has grown 8.5% a year. It pays a 2.85% dividend yield, raised every year for at least 5 years, and returned $814.2M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −8.0% over the past year with dividends reinvested and +11.0% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 38.1% in the 2020 crash (S&P 500: 33.7%) and 38.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months after the low.
The business in plain English
Kontoor Brands, based in Greensboro, North Carolina, is a clothing company built around three well-known brands: Wrangler, Lee and Helly Hansen. It designs, makes or sources, and sells denim, outdoor gear, workwear, footwear and accessories. It also licenses its brand names to other companies in some regions. Its products are sold or licensed in more than 90 countries. About 150 million units bearing its brands were sold in fiscal 2025, the 53-week year ended January 3, 2026.
Kontoor reaches shoppers in two ways. The first is wholesale, which means selling to retailers that resell the goods. The second is selling directly to consumers. Major retail partners include Walmart, Target, Amazon and Boot Barn. Walmart alone made up 30% of net revenue in fiscal 2025, and the ten largest customers together made up 53%.
On May 31, 2025, Kontoor acquired Helly Hansen, a premium outdoor and workwear brand, along with the Musto sailing brand. It paid about $957.5 million, using debt and cash. Revenue for fiscal 2025 rose about 21% to $3.15 billion, helped by the new brands and the extra week. Wrangler brought in about 61% of revenue, Lee about 24% and Helly Hansen about 15%, counting only the months after the deal closed. U.S. sales made up about 73% of revenue, and international sales the rest.
Price history
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KTB -8.0% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Wrangler | $1.91B | 60.7% |
| Lee | $750.4M | 23.8% |
| Helly Hansen | $459.7M | 14.6% |
By geography
| U.S. Wholesale | $2.29B | 72.6% |
| International Wholesale | $865.2M | 27.4% |
Latest results
- In Q2 FY2026 (ended Jul 4, 2026), revenue was $584.3M, up 18.6% from a year earlier, and net income was $64.8M (-12.3%).
- For fiscal 2025, revenue was $3.15B (+20.9% year over year; +8.5% a year from FY2020 to FY2025) with a 7.2% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +8.5% good |
|---|---|
| Operating margin | 10.7% watch |
| Free cash flow margin | 13.8% good |
| Return on equity (FY2025) | 40.3% good |
| Return on assets (FY2025) | 8.8% good |
| Net cash (cash minus debt) | $-1.09B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $2.10B | $67.9M | $223.8M |
| FY2021 | $2.48B | $195.4M | $273.3M |
| FY2022 | $2.63B | $245.5M | $65.2M |
| FY2023 | $2.61B | $231.0M | $329.2M |
| FY2024 | $2.61B | $245.8M | $349.4M |
| FY2025 | $3.15B | $227.5M | $434.8M |
Valuation snapshot
| Market value | $4.06B |
|---|---|
| P/E ratio | 18.4 |
| Dividend yield | 2.85% |
Rank among 1514 US companies
Market value at each year end
Kontoor Brands’s market value went from $2.39B at the end of 2019 to $4.06B on Oct 28, 2026, up 70%; since the end of 2025 it is up 20%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $4.06B | +19.7% |
| 2025 | $3.40B | -27.9% |
| 2024 | $4.71B | +34.3% |
| 2023 | $3.51B | +58.1% |
| 2022 | $2.22B | -24.5% |
| 2021 | $2.94B | +26.6% |
| 2020 | $2.32B | -3.0% |
| 2019 | $2.39B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| KTB price data to Oct 28, 2026 | +24.5% | -8.0% | +20.4% | +11.0% | — |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +24.5% |
| 2025 | -26.3% |
| 2024 | +40.7% |
| 2023 | +62.6% |
| 2022 | -18.2% |
| 2021 | +30.3% |
| 2020 | -0.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 38.1% over that stretch · deepest drop along the way 38.1%, back to its old high 7.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 31.8% over that stretch · deepest drop along the way 38.2%, back to its old high 8.4 months after the low |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 0 open-market purchases and 4 sales ($16.3M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 13, 2026 | Scott H Baxter Chairman and CEO, Director | sell | $9.7M |
| Aug 13, 2026 | Scott H Baxter Chairman and CEO, Director | sell | $5.7M |
| Aug 13, 2026 | Thomas L Jr Doerr EVP, GC, & Secretary | sell | $639K |
| Jun 12, 2026 | Jennifer H. Broyles EVP, Global Brands President | sell | $324K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 13.6% | Jun 30, 2025 |
| The PNC Financial Services Group, Inc. | 6.4% | Mar 31, 2025 |
| Vanguard Portfolio Management | 6.09% | Mar 31, 2026 |
| JPMORGAN CHASE & CO. | 5.4% | Dec 31, 2025 |
| Vanguard Capital Management | 5.14% | Mar 31, 2026 |
| FMR LLC | 4.9% | Dec 31, 2024 |
| JPMORGAN CHASE & CO | 4.6% | Mar 31, 2026 |
ETFs with the most weight in KTB
| PSCD Invesco S&P SmallCap Consumer Discretionary ETF | 1.92% |
| XSHQ Invesco S&P SmallCap Quality ETF | 1.69% |
| JPSV JPMorgan Active Small Cap Value ETF | 0.94% |
| CSB VictoryShares US Small Cap High Dividend Volatility Wtd ETF | 0.76% |
| GSC Goldman Sachs Small Cap Core Equity ETF | 0.72% |
| SDVD FT Vest SMID Rising Dividend Achievers Target Income ETF | 0.68% |
| SFLO VictoryShares Small Cap Free Cash Flow ETF | 0.57% |
| CAFG Pacer US Small Cap Cash Cows Growth Leaders ETF | 0.54% |
What could go wrong
- Heavy dependence on Walmart. Walmart supplied 30% of net revenue in fiscal 2025, and the top ten customers supplied 53%. They have no long-term contracts and many have their own store brands, so they can cut orders or resist price increases.
- Helly Hansen deal may disappoint. Kontoor paid about $957.5 million for Helly Hansen and Musto in May 2025, using debt and cash. If integration stumbles or growth and cost savings fall short, the deal may not pay off.
- Tariffs are squeezing profit margins. Higher U.S. tariffs on almost all imports hurt gross margin, the share of sales left after product costs, in fiscal 2025. Kontoor expects continued pressure, and whether some tariffs get refunded is unclear.
- Sizable debt and little cash. Total debt was about $1.14 billion against about $58 million of cash as of July 4, 2026. Debt terms can restrict the business, and weaker credit ratings could raise borrowing costs.
- Reliance on outside suppliers and few mills. Outside suppliers around the world provide a large share of Kontoor's materials and finished goods, and a limited number of North American mills supply raw materials. Disruptions could delay shipments, raise costs or lead to lost sales.
- Shoppers and retailers pulling back. People can easily put off clothing purchases, so sales depend on the economy, jobs and incomes. Inflation, interest rates and tariffs led retailers to keep inventories lean in fiscal 2025, which weighed on Kontoor's business.
Recent events
- Other company announcement
- Executive or board change
- Investor presentation or announcement
- Executive or board change
- Quarterly results released
- Investor presentation or announcement
- Executive or board change; Other company announcement
- Executive or board change
- Major agreement signed
- Quarterly results released; Other company announcement
For income and retirement investors
Kontoor has raised its regular dividend for five straight years, from $0.96 per share in fiscal 2020 to $2.09 in fiscal 2025 (the year ended January 3, 2026). That works out to growth of about 16.8% a year. The fiscal 2025 dividend took about 51% of earnings and 27% of free cash flow, which is the cash left after running and investing in the business. The yield was 2.85% as of October 28, 2026. Share buybacks totaled about $279 million from fiscal 2021 to 2025, but only $25 million in fiscal 2025, the year Kontoor acquired Helly Hansen.
The stock has dropped sharply in downturns. From peak to low, it fell 38.1% in the 2020 COVID crash and 38.2% in the 2022 bear market. It then took 7.8 and 8.4 months to recover. Its trading history does not reach back to the 2008 financial crisis. A single stock like this carries more risk than a diversified fund.
Questions investors ask
How does Kontoor Brands make money?
Kontoor makes money mainly by selling Wrangler, Lee and Helly Hansen clothing, footwear and accessories. It sells to retailers such as Walmart, Target, Amazon and Boot Barn, and directly to consumers. It also licenses its brands in some regions. In fiscal 2025 (the year ended January 3, 2026), revenue was $3.15 billion. Wrangler brought in about 61%, Lee about 24% and Helly Hansen about 15%. Net income was $227 million, or about 7 cents of profit on each dollar of sales.
Does Kontoor Brands raise its dividend every year?
Yes, for five straight years through fiscal 2025. Kontoor raised its regular dividend each year over that stretch, from $0.96 to $2.09 per share. The fiscal 2025 dividend used about 51% of earnings and about 27% of free cash flow. The yield was 2.85% as of October 28, 2026. The company warns that its board may not keep declaring dividends, so future increases are not guaranteed.
How much of Kontoor Brands' sales come from Walmart?
About 30%. Walmart, Kontoor's top customer, accounted for 30% of net revenue in each of fiscal 2023, 2024 and 2025. The ten largest customers made up 53% in fiscal 2025. These retailers place orders as needed rather than under long-term contracts. Many also have their own store brands that compete with Kontoor's. A big cut in orders from a major customer could substantially reduce revenue and profit.
Why did Kontoor Brands acquire Helly Hansen?
To grow in outdoor and workwear and to spread its business beyond Wrangler and Lee. Kontoor completed the purchase of Helly Hansen and the Musto sailing brand on May 31, 2025, for about $957.5 million, paid with debt and cash. The company says the deal widens its reach across regions, product types, customers and sales channels. Helly Hansen supplied about 15% of fiscal 2025 revenue, counting only the months after closing. Total debt was about $1.14 billion as of July 4, 2026.
How do tariffs affect Kontoor Brands?
They have hurt its profit margins. Higher U.S. tariffs on almost all imports weighed on gross margin in fiscal 2025. Gross margin is the share of sales left after product costs, and it was 45.2% that year. Kontoor expects the effect to continue. The company has adjusted prices and is weighing other steps, such as moving production within its supply chain and working with suppliers. A February 2026 Supreme Court ruling on some tariffs leaves refunds and future tariff levels unclear.