$KTB

Kontoor Brands, Inc.

CIK:0001760965|SEC Filings

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025	Jul. 04, 2026	Jun. 28, 2025
Income Statement [Abstract]
Net revenues	$ 584,288	$ 492,632	$ 1,197,610	$ 915,633
Costs and operating expenses
Cost of goods sold	256,026	263,451	539,974	493,718
Selling, general and administrative expenses	237,736	172,233	477,005	333,598
Total costs and operating expenses	493,762	435,684	1,016,979	827,316
Operating income	90,526	56,948	180,631	88,317
Interest expense	(15,673)	(13,485)	(31,757)	(23,293)
Interest income	1,843	2,820	4,027	6,139
Other (expense) income, net	(3,744)	30,546	(6,346)	20,253
Income from continuing operations before income taxes	72,952	76,829	146,555	91,416
Income taxes	(18,530)	(18,397)	(36,494)	(22,735)
Income from equity method investment	2,599	264	7,998	264
Income from continuing operations	57,021	58,696	118,059	68,945
Income from discontinued operations, net of tax	7,781	15,173	39,182	47,806
Net income	$ 64,802	$ 73,869	$ 157,241	$ 116,751
Earnings per common share - basic
Continuing operations - basic (in USD per share)	$ 1.04	$ 1.06	$ 2.14	$ 1.25
Discontinued operations - basic (in USD per share)	0.14	0.27	0.71	0.86
Total earnings per common share - basic (in USD per share)	1.18	1.33	2.85	2.11
Earnings per common share - diluted
Continuing operations - diluted (in USD per share)	1.03	1.05	2.12	1.23
Discontinued operations - diluted (in USD per share)	0.14	0.27	0.70	0.85
Total earnings per common share - diluted (in USD per share)	$ 1.17	$ 1.32	$ 2.82	$ 2.08
Weighted average shares outstanding
Basic (in shares)	55,089	55,560	55,156	55,458
Diluted (in shares)	55,495	55,975	55,746	56,017

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025
OPERATING ACTIVITIES
Net income	$ 157,241	$ 116,751
Income from discontinued operations, net of tax	39,182	47,806
Income from continuing operations, net of tax	118,059	68,945
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	24,446	16,523
Stock-based compensation	16,840	19,929
Provision for doubtful accounts	808	136
Gain on sale of assets and businesses, net of tax	(15,851)	0
Other	(23,366)	35,376
Changes in operating assets and liabilities, net of business acquisition effects:
Accounts receivable	(26,203)	2,451
Inventories	(88,012)	(106,954)
Accounts payable	57,321	28,264
Income taxes	7,616	(12,217)
Accrued and other current liabilities	(28,122)	13,497
Other assets and liabilities	(3,907)	2,839
Cash provided by operating activities - continuing operations	39,629	68,789
Cash provided by operating activities - discontinued operations	54,003	34,519
Cash provided by operating activities	93,632	103,308
INVESTING ACTIVITIES
Property, plant and equipment expenditures	(7,963)	(5,309)
Capitalized computer software	(3,072)	(2,165)
Business acquisition, net of cash received	0	(870,058)
Proceeds from the settlement of foreign exchange contracts to hedge business acquisition	0	24,115
Collection of deferred purchase price on sold accounts receivable	14,858	0
Proceeds from sales of assets	25,091	2
Cash provided (used) by investing activities - continuing operations	28,914	(853,415)
Cash used by investing activities - discontinued operations	(1,376)	(2,009)
Cash provided (used) by investing activities	27,538	(855,424)
FINANCING ACTIVITIES
Borrowings under revolving credit facility	56,500	0
Repayments under revolving credit facility	(56,500)	0
Proceeds from issuance of long-term debt	0	1,000,000
Payment of debt issuance costs	0	(7,433)
Repayments of term loan	0	(370,000)
Repurchases of Common Stock	(75,442)	0
Dividends paid	(58,462)	(57,717)
Shares withheld for taxes, net of proceeds from issuance of Common Stock	(14,804)	(8,555)
Cash (used) provided by financing activities	(148,708)	556,295
Effect of foreign currency rate changes on cash and cash equivalents	(87)	(30,763)
Net change in cash and cash equivalents	(27,625)	(226,584)
Cash and cash equivalents – beginning of period	108,442	334,066
Cash and cash equivalents – end of period	$ 80,817	$ 107,482

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 04, 2026	Jan. 03, 2026	Jun. 28, 2025
Current assets
Cash and cash equivalents	$ 58,457	$ 77,215	$ 85,914
Accounts receivable, net	220,828	209,419	237,530
Inventories	526,121	435,945	543,130
Prepaid expenses and other current assets	114,533	102,056	93,446
Current assets of discontinued operations	228,323	256,481	255,756
Total current assets	1,148,262	1,081,116	1,215,776
Property, plant and equipment, net	110,890	113,285	119,239
Operating lease assets	120,783	110,330	124,163
Intangible assets, net	447,728	445,584	447,058
Goodwill	461,056	451,006	407,985
Other assets	214,355	212,294	228,911
Other assets of discontinued operations	162,217	169,057	174,773
TOTAL ASSETS	2,665,291	2,582,672	2,717,905
Current liabilities
Current portion of long-term debt	17,500	8,750	0
Accounts payable	252,787	195,560	217,110
Accrued and other current liabilities	213,771	237,864	197,366
Operating lease liabilities, current	29,656	22,418	27,701
Current liabilities of discontinued operations	113,556	129,035	116,196
Total current liabilities	627,270	593,627	558,373
Operating lease liabilities, noncurrent	98,944	95,422	98,945
Other liabilities	166,841	164,431	161,059
Long-term debt	1,126,666	1,134,579	1,366,510
Other liabilities of discontinued operations	27,026	29,746	34,671
Total liabilities	2,046,747	2,017,805	2,219,558
Commitments and contingencies
Equity
Preferred Stock, no par value; shares authorized, 90,000,000; no shares outstanding at June 2026, December 2025 and June 2025	0	0	0
Common Stock, no par value; shares authorized, 600,000,000; shares outstanding of 54,650,957 at June 2026; 55,239,594 at December 2025 and 55,567,652 at June 2025	0	0	0
Additional paid-in capital	378,224	358,130	338,426
Retained earnings	280,600	274,280	249,521
Accumulated other comprehensive loss	(40,280)	(67,543)	(89,600)
Total equity	618,544	564,867	498,347
TOTAL LIABILITIES AND EQUITY	$ 2,665,291	$ 2,582,672	$ 2,717,905