Kontoor Brands, Inc. (KTB)

In January 2026, Barclays lowered its price target on KTB shares from $94 to $74 due to demand uncertainty, leading to a 4.2% stock price drop. In December 2025, despite robust Q3 2025 earnings that beat EPS estimates, the stock price plummeted 20.9% due to a slight revenue miss and concerns regarding its fourth-quarter guidance. On November 3, 2025, Kontoor Brands reported its Q3 2025 results, with revenue increasing 27% year-over-year, significantly driven by the acquisition of Helly Hansen, while the Lee brand experienced an 8% decrease in global revenue, and the company raised its full-year outlook. On August 7, 2025, the company released its Q2 2025 results, showing an 8% increase in revenue compared to the prior year, partly due to the contribution from Helly Hansen, and Kontoor Brands subsequently strengthened its 2025 outlook. On May 6, 2025, Kontoor Brands reported its Q1 2025 results, with revenue decreasing 1% compared to the prior year, and the company updated its 2025 outlook. On February 19, 2025, Kontoor Brands announced a definitive agreement to acquire the global outdoor and workwear brand Helly Hansen.

Demand for Kontoor Brands' products is typically seasonal, with a higher proportion of net revenues and operating cash flows generated during the second half of the fiscal year, including the back-to-school and holiday selling seasons. The recently acquired Helly Hansen business also exhibits seasonality, with its revenues concentrated in the second half of the year, aligning with fall/winter seasons in the northern hemisphere. Historically, the second quarter has been Helly Hansen's smallest quarter, sometimes resulting in operating losses. A seasonal chart analysis for KTB over the past five years suggests a period of strength from July 8 to November 23.

Kontoor Brands, Inc. is a global lifestyle apparel company based in Greensboro, North Carolina, operating in the Consumer Goods sector, specifically the Apparel & Textile Products industry. The company designs, manufactures, procures, sells, and licenses apparel, footwear, and accessories, with major brands including Wrangler, Lee, Helly Hansen, Rock & Republic, and Musto. Kontoor Brands emphasizes a strategic sourcing model and a best-in-class supply chain with industry-leading sustainability standards.

Kontoor Brands has a significant global presence, operating in over 70 countries, with 80% of its 2024 sales generated within the U.S. and 20% from outside the U.S. The company has an operational presence across Asia, Africa, Europe, the Middle East, and other regions. Its distribution channels include wholesale (United States and non-United States), direct-to-consumer through company-operated stores, and online platforms.

Kontoor Brands has experienced a mixed reputation from an investment perspective, with some analysts suggesting the company's quality does not meet their hurdle due to weak sales growth and low returns on capital. The Lee brand partnered with Goody on a limited edition hair accessories collection, marking Lee's first venture into hair and beauty, exclusively available at Walmart and online. The acquisition of Helly Hansen is a strategic move aimed at diversifying the company's portfolio beyond denim and expanding into the high-growth outdoor and performance apparel market.

Kontoor Brands' ownership is primarily institutional, with major shareholders including BlackRock, Inc., PNC Financial Services Group, Inc., Vanguard Group Inc, JPMorgan Chase & Co, State Street Corp, Fmr Llc, Geode Capital Management, Llc, Capital World Investors, Dimensional Fund Advisors Lp, and Morgan Stanley. Institutional investors hold approximately 76.57% to 99.64% of the company's stock. Scott H. Baxter is the largest individual shareholder, owning 1.36% of the company's shares, and insider ownership is around 1.61% to 2.70%.