Revenue growth has been volatile, swinging from +45.7% in 2025Q4 to -11.2% in 2026Q2, while gross margin expanded 1250 basis points to 56.2% in 2026Q2, suggesting peak profitability that may not be sustainable.
Kontoor Brands, Inc. (KTB) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 2.9B | 3.15B | 2.61B | 2.61B | 2.63B | 2.48B | 2.1B | 2.55B | 2.76B | 2.83B |
| Revenue Growth % | 2.4% | 20.96% | 0% | -0.91% | 6.28% | 18.02% | -17.69% | -7.78% | -2.34% | - |
| Cost of Goods Sold | 1.44B | 1.68B | 1.45B | 1.52B | 1.5B | 1.37B | 1.23B | 1.54B | 1.65B | 1.66B |
| COGS % of Revenue | - | 53.3% | 55.45% | 58.28% | 56.89% | 55.26% | 58.83% | 60.59% | 59.68% | 58.59% |
| Gross Profit | 1.47B | 1.47B | 1.16B | 1.09B | 1.13B | 1.11B | 863.69M | 1B | 1.11B | 1.17B |
| Gross Margin % | 50.54% | 46.7% | 44.55% | 41.72% | 43.11% | 44.74% | 41.17% | 39.41% | 40.32% | 41.41% |
| Gross Profit Growth % | - | 26.82% | 6.78% | -4.1% | 2.41% | 28.26% | -14.01% | -9.89% | -4.9% | - |
| Operating Expenses | 1.06B | 1.03B | 819.28M | 768.57M | 777.7M | 824.75M | 739.86M | 803.45M | 781.52M | 814.54M |
| OpEx % of Revenue | - | 32.56% | 31.42% | 29.48% | 29.55% | 33.31% | 35.27% | 31.52% | 28.27% | 28.78% |
| Selling, General & Admin | 1.06B | 1.03B | 819.28M | 768.57M | 777.7M | 824.75M | 739.86M | 803.45M | 781.52M | 814.54M |
| SG&A % of Revenue | - | 32.56% | 31.42% | 29.48% | 29.55% | 33.31% | 35.27% | 31.52% | 28.27% | 28.78% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5M | -5.27M | -3.36M |
| Operating Income | 401.96M | 446.01M | 342.29M | 319.27M | 356.67M | 282.98M | 123.83M | 168.29M | 333.04M | 357.42M |
| Operating Margin % | 13.85% | 14.14% | 13.13% | 12.24% | 13.55% | 11.43% | 5.9% | 6.6% | 12.05% | 12.63% |
| Operating Income Growth % | - | 30.3% | 7.21% | -10.48% | 26.04% | 128.51% | -26.42% | -49.47% | -6.82% | - |
| EBITDA | 449.02M | 493.8M | 384.92M | 357.31M | 393.79M | 319.58M | 158.32M | 199.05M | 364.08M | 391.05M |
| EBITDA Margin % | 15.47% | 15.66% | 14.76% | 13.7% | 14.96% | 12.91% | 7.55% | 7.81% | 13.17% | 13.82% |
| EBITDA Growth % | 28.99% | 28.28% | 7.73% | -9.26% | 23.22% | 101.85% | -20.46% | -45.33% | -6.9% | - |
| D&A (Non-Cash Add-back) | 47.06M | 47.79M | 42.63M | 38.05M | 37.13M | 36.6M | 34.49M | 30.76M | 31.04M | 33.63M |
| EBIT | 390.24M | 364.51M | 342.25M | 312.31M | 354.06M | 283.5M | 122.93M | 170.98M | 341.25M | 360.42M |
| Net Interest Income | -62.55M | -58.54M | -29.68M | -36.62M | -33.57M | -37.42M | -48.38M | -28.09M | 12.3M | 5.09M |
| Interest Income | 5.03M | 7.3M | 11.15M | 3.79M | 1.35M | 1.48M | 1.61M | 7.69M | 13.48M | 6.36M |
| Interest Expense | 67.58M | 65.84M | 40.82M | 40.41M | 34.92M | 38.9M | 49.99M | 35.79M | 1.17M | 1.26M |
| Other Income/Expense | -79.3M | -147.34M | -40.87M | -47.37M | -37.53M | -38.38M | -50.9M | -33.1M | 7.04M | 1.74M |
| Pretax Income | 322.66M | 298.67M | 301.42M | 271.9M | 319.14M | 244.6M | 72.94M | 135.19M | 340.08M | 359.15M |
| Pretax Margin % | 11.12% | 9.47% | 11.56% | 10.43% | 12.13% | 9.88% | 3.48% | 5.3% | 12.3% | 12.69% |
| Income Tax | 167.23M | 71.22M | 55.62M | 40.91M | 73.64M | 49.18M | 5.01M | 38.54M | 77M | 242.96M |
| Effective Tax Rate % | 51.83% | 23.85% | 18.45% | 15.04% | 23.08% | 20.11% | 6.87% | 28.51% | 22.64% | 67.65% |
| Net Income | 201.45M | 227.45M | 245.8M | 230.99M | 245.49M | 195.42M | 67.92M | 96.65M | 263.07M | 116.19M |
| Net Margin % | 6.94% | 7.21% | 9.43% | 8.86% | 9.33% | 7.89% | 3.24% | 3.79% | 9.52% | 4.11% |
| Net Income Growth % | -7.45% | -7.47% | 6.41% | -5.91% | 25.62% | 187.71% | -29.73% | -63.26% | 126.41% | - |
| Net Income (Continuing) | 155.43M | 227.45M | 245.8M | 230.99M | 245.49M | 195.42M | 67.92M | 96.65M | 263.07M | 116.19M |
| Discontinued Operations | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 3.69 | 4.05 | 4.36 | 4.06 | 4.31 | 3.31 | 1.17 | 1.69 | 4.64 | 2.05 |
| EPS Growth % | -7.47% | -7.11% | 7.39% | -5.8% | 30.21% | 182.91% | -30.77% | -63.58% | 126.34% | - |
| EPS (Basic) | - | 4.10 | 4.42 | 4.13 | 4.40 | 3.40 | 1.19 | 1.71 | 4.66 | 2.05 |
| Diluted Shares Outstanding | 54.63M | 56.11M | 56.32M | 56.93M | 56.96M | 59.09M | 57.86M | 57.21M | 56.64M | 56.64M |
| Basic Shares Outstanding | 54.63M | 55.5M | 55.55M | 55.96M | 55.74M | 57.39M | 56.99M | 56.69M | 56.45M | 56.64M |
| Dividend Payout Ratio | - | 51.04% | 45.59% | 47% | 42.23% | 48.65% | 80.63% | 65.76% | - | - |
Quick answers to the most common questions about buying KTB stock.
For fiscal year 2025, Kontoor Brands, Inc. (KTB) reported total revenue of $3.15B. This represents a 11.4% increase compared to $2.83B in 2017.
Kontoor Brands, Inc. (KTB) is profitable, generating $227.5M in net income for the fiscal year ending 2025 with a net profit margin of 7.2%.
Kontoor Brands, Inc. (KTB) reported an operating income of $446.0M, resulting in an operating profit margin of 14.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Kontoor Brands, Inc. (KTB) generated $1.47B in gross profit for the year, representing a gross profit margin of 46.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Gross margin sustainability and demand volatility
Metrics are mathematically derived from official filings.
Revenue Growth Shows Volatility
KTB's revenue growth swung from -11.2% in 2026Q2 to +45.7% in 2025Q4, indicating uneven demand. According to the latest quarterly data, the 2025Q4 surge was likely driven by wholesale timing and holiday shipments.
The 45.7% year-over-year growth in 2025Q4 appears to be an outlier, as subsequent quarters show deceleration to -1.5% and -11.2%. This suggests that the growth spike may have been pulled forward, and underlying demand may be stabilizing at a lower level. The mixed growth pattern indicates that KTB's revenue is sensitive to channel inventory dynamics and consumer spending, with no clear sustained acceleration.
Gross Margin Expansion at a Potential Peak
Gross margin expanded from 43.7% in 2024Q4 to 56.2% in 2026Q2, a 1250 basis point improvement. As reported in financial statements, this likely reflects lower cotton costs and favorable product mix, but sustainability is uncertain.
The dramatic gross margin expansion is a key driver of profitability, but it may be temporary. The 56.2% gross margin in 2026Q2 is well above the peer average and KTB's historical range, suggesting that pricing power or input cost tailwinds may be at a cyclical peak. If cotton prices rise or competitors increase promotional activity, margins could revert, pressuring earnings.
Operating Leverage Evident in Recent Quarters
Operating income grew faster than revenue in 2025Q4, with operating margin jumping to 14.2% from 12.1% in the prior year. Based on reported figures, SG&A grew only 50% of the revenue growth rate, indicating operating leverage.
In 2025Q4, revenue grew 45.7% while SG&A grew only 50.7% (from $221.3M to $333.6M), leading to a 71% increase in operating income. This demonstrates that KTB's cost structure has a significant fixed component, allowing for margin expansion when volumes rise. However, the reverse could occur if revenue declines, as seen in 2026Q2 where operating margin fell to 15.5% from 15.5% in the prior year, but that was still above historical levels.
Earnings Quality Supported by Low SBC
Stock-based compensation averaged $6.5M per quarter over the last five quarters, representing less than 10% of net income. According to the income statement data, this suggests reported EPS is not heavily diluted by non-cash charges.
SBC as a percentage of net income has been modest, ranging from -$5.0M in 2025Q4 to $14.5M in 2025Q1. The negative SBC in 2025Q4 is unusual and may indicate a reversal or adjustment, but overall, SBC is not a major drag on earnings quality. The tax rate appears stable, and net income is closely aligned with operating income, indicating that non-operating items are not distorting earnings.
COGS and SG&A Efficiency Drive Margins
COGS as a percentage of revenue fell from 56.3% in 2024Q4 to 43.8% in 2026Q2, while SG&A as a percentage of revenue remained stable around 38%. This cost discipline is a primary driver of margin expansion.
The significant reduction in COGS ratio suggests improved sourcing efficiency or favorable input costs, which has been the main lever for gross margin expansion. SG&A has been well-controlled, with only a slight increase in absolute terms but stable as a percentage of revenue. This indicates that management is effectively managing overhead while investing in growth areas like Helly Hansen, which may have contributed to the recent revenue diversification.
2025Q4 Marks a Turning Point
The 2025Q4 quarter saw a dramatic revenue surge to $1.0B, up 45.7% year-over-year, and a gross margin jump to 46.9%. This inflection appears to be driven by a combination of wholesale replenishment and successful brand initiatives.
The 2025Q4 results represent a clear inflection point, with revenue and margins reaching levels not seen in the prior eight quarters. This was followed by continued margin expansion in 2026, though revenue growth has since decelerated. The lasting impact is a higher margin base, but the sustainability of the revenue level is uncertain, as subsequent quarters have shown declines. Investors should monitor whether this inflection is a one-time event or the start of a new growth trajectory.
What Could Invalidate the Base Case
The 56.2% gross margin in 2026Q2 may be unsustainable if cotton prices rebound or competitors discount aggressively. According to the data, revenue growth has already turned negative, suggesting demand may be softening.
The recent gross margin expansion appears to be driven by favorable input costs and mix, but these tailwinds could reverse. With revenue declining 11.2% in 2026Q2, the market may question whether the margin gains are masking underlying volume weakness. If KTB must increase promotional activity to defend market share, margins could compress, and the current earnings level may not be repeatable. Investors should watch for inventory buildup and trade spend increases as leading indicators.