Gross margins expanded to 53.7% in 2026Q1 from 41.7% in 2023Q4, though revenue growth remains inconsistent with a recent 1.5% decline in the latest quarter.
| Sales/Revenue | 3.14B | 3.15B | 2.61B | 2.61B | 2.63B | 2.48B | 2.1B | 2.55B | 2.76B | 2.83B |
| Revenue Growth % | 20.94% | 20.96% | 0% | -0.91% | 6.28% | 18.02% | -17.69% | -7.78% | -2.34% | - |
| Cost of Goods Sold | 1.64B | 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 | 1.5B | 1.47B | 1.16B | 1.09B | 1.13B | 1.11B | 863.69M | 1B | 1.11B | 1.17B |
| Gross Margin % | 47.8% | 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 | 1.13B | 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 | 1.07B | 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 | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | -5M | -5.27M | -3.36M |
| Operating Income | 376.76M | 446.01M | 342.29M | 319.27M | 356.67M | 282.98M | 123.83M | 168.29M | 333.04M | 357.42M |
| Operating Margin % | 11.98% | 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 | 430.25M | 493.8M | 384.92M | 357.31M | 393.79M | 319.58M | 158.32M | 199.05M | 364.08M | 391.05M |
| EBITDA Margin % | 13.69% | 15.66% | 14.76% | 13.7% | 14.96% | 12.91% | 7.55% | 7.81% | 13.17% | 13.82% |
| EBITDA Growth % | 15.06% | 28.28% | 7.73% | -9.26% | 23.22% | 101.85% | -20.46% | -45.33% | -6.9% | - |
| D&A (Non-Cash Add-back) | 53.49M | 47.79M | 42.63M | 38.05M | 37.13M | 36.6M | 34.49M | 30.76M | 31.04M | 33.63M |
| EBIT | 407.15M | 446.01M | 342.25M | 312.31M | 354.06M | 283.5M | 122.93M | 170.98M | 341.25M | 360.42M |
| Net Interest Income | -62.4M | -58.54M | -29.68M | -36.62M | -33.57M | -37.42M | -48.38M | -28.09M | 12.3M | 5.09M |
| Interest Income | 5.69M | 7.3M | 11.15M | 3.79M | 1.35M | 1.48M | 1.61M | 7.69M | 13.48M | 6.36M |
| Interest Expense | 68.09M | 65.84M | 40.82M | 40.41M | 34.92M | 38.9M | 49.99M | 35.79M | 1.17M | 1.26M |
| Other Income/Expense | -55.02M | -147.34M | -40.87M | -47.37M | -37.53M | -38.38M | -50.9M | -33.1M | 7.04M | 1.74M |
| Pretax Income | 321.74M | 298.67M | 301.42M | 271.9M | 319.14M | 244.6M | 72.94M | 135.19M | 340.08M | 359.15M |
| Pretax Margin % | 10.23% | 9.47% | 11.56% | 10.43% | 12.13% | 9.88% | 3.48% | 5.3% | 12.3% | 12.69% |
| Income Tax | 76.14M | 71.22M | 55.62M | 40.91M | 73.64M | 49.18M | 5.01M | 38.54M | 77M | 242.96M |
| Effective Tax Rate % | 23.66% | 23.85% | 18.45% | 15.04% | 23.08% | 20.11% | 6.87% | 28.51% | 22.64% | 67.65% |
| Net Income | 277.01M | 227.45M | 245.8M | 230.99M | 245.49M | 195.42M | 67.92M | 96.65M | 263.07M | 116.19M |
| Net Margin % | 8.81% | 7.21% | 9.43% | 8.86% | 9.33% | 7.89% | 3.24% | 3.79% | 9.52% | 4.11% |
| Net Income Growth % | 20.87% | -7.47% | 6.41% | -5.91% | 25.62% | 187.71% | -29.73% | -63.26% | 126.41% | - |
| Net Income (Continuing) | 245.61M | 227.45M | 245.8M | 230.99M | 245.49M | 195.42M | 67.92M | 96.65M | 263.07M | 116.19M |
| Discontinued Operations | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 4.95 | 4.05 | 4.36 | 4.06 | 4.31 | 3.31 | 1.17 | 1.69 | 4.64 | 2.05 |
| EPS Growth % | 21.08% | -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 | 56M | 56.11M | 56.32M | 56.93M | 56.96M | 59.09M | 57.86M | 57.21M | 56.64M | 56.64M |
| Basic Shares Outstanding | 55.22M | 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% | - | - |
Wholesale channel demand volatility
As reflected in the latest quarterly data, KTB's revenue trajectory remains highly volatile, swinging from a 45.7% surge in 2025Q4 to a 1.5% contraction in 2026Q1, suggesting that the company's reliance on wholesale replenishment cycles creates significant lumpiness in top-line performance across different reporting periods.
The sharp revenue fluctuations indicate that KTB's growth is heavily tethered to the inventory management decisions of its major retail partners rather than consistent end-consumer demand. Investors should monitor whether this volatility represents a structural shift in ordering patterns or merely temporary timing differences in wholesale shipments.
Based on reported financial statements, KTB achieved a notable gross margin expansion to 53.7% in 2026Q1, which stands in contrast to the 41.7% level seen in 2023Q4, potentially signaling successful pricing power or a favorable shift in the product mix toward higher-margin denim categories.
While the margin improvement is encouraging, it remains unclear if this expansion is sustainable or if it reflects a temporary benefit from lower input costs or reduced promotional activity. The sensitivity of these margins to commodity prices and retail contract terms warrants further investigation into the durability of this profitability profile.
According to the income statement, operating income has struggled to scale proportionally with gross profit, as evidenced by the 2025Q3 operating margin compression to 7.5% despite significant revenue, suggesting that SG&A expenses are not currently providing the expected efficiency gains during periods of high top-line growth.
The inability to consistently expand operating margins during revenue spikes implies that KTB's cost structure may be more fixed than previously anticipated. This lack of operating leverage suggests that management may be struggling to control overhead costs effectively when scaling operations to meet sudden surges in wholesale demand.
As reported in recent filings, KTB's net income is frequently impacted by stock-based compensation, which reached $14.5M in 2025Q1, indicating that reported EPS figures may be somewhat inflated by non-cash adjustments that do not necessarily reflect the underlying cash-generating capability of the core apparel business.
The variability in SBC expenses suggests that investors should focus on adjusted earnings metrics to better understand the true operational performance. Furthermore, the significant fluctuations in net income relative to operating income suggest that non-operating items or tax anomalies may be distorting the bottom-line results.
Based on the provided data, the primary risk to KTB's narrative is its heavy concentration in wholesale channels, where a 20.96% YoY revenue growth figure may mask underlying inventory risks if retail partners decide to aggressively destock in response to shifting consumer sentiment or economic headwinds.
Short-term revenue gains could be misleading if they are driven by channel stuffing rather than organic sell-through at the retail level. The lack of significant DTC penetration leaves the company vulnerable to the strategic shifts of its largest retail accounts, which could lead to sudden margin compression.
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.