GREENSBORO, N.C.—Scott Baxter (NYSE:BAX), Chair, President, and CEO of Kontoor Brands , Inc. (NYSE:NYSE:KTB), recently executed a series of stock transactions, according to a Form 4 filing with the Securities and Exchange Commission.
On November 5, Baxter sold a total of 119,160 shares of Kontoor Brands' common stock. The sales occurred at a weighted average price range between $82.94 and $84.65 per share, amounting to approximately $9.96 million. Following these transactions, Baxter's direct ownership of Kontoor Brands' stock stands at 326,162 shares.
In addition to these sales, Baxter exercised stock options to acquire 119,160 shares at a price of $30.84 per share, which were subsequently sold as part of the transactions reported.
Kontoor Brands, based in Greensboro, North Carolina, is known for its portfolio of leading denim brands, including Wrangler and Lee.
In other recent news, Kontoor Brands has been making headlines with its robust Q3 results and future growth outlook. The company reported a 2% increase in global revenue, driven by notable growth in the Wrangler brand. Adjusted earnings per share rose by 12% to $1.37, and the company saw a significant decrease in inventory levels, leading to strong cash generation. Despite this, Stifel downgraded the stock from Buy to Hold, citing potential risks despite the company's solid earnings progress.
Stifel's decision followed an evaluation of Kontoor Brands' performance and future prospects in light of current market conditions. The firm acknowledged the potential for margin improvement in fiscal years 2025 and 2026, thanks to Project Jeanius, an initiative by Kontoor Brands. However, risks such as reliance on Walmart (NYSE:WMT) as a major customer and commodity price volatility were flagged.
These recent developments come as Kontoor Brands forecasts a full-year revenue of $2.6 billion and a Q4 revenue of approximately $695 million. The company's Project Genius initiative is expected to contribute to continued expansion in 2025, delivering an estimated $100 million in savings. Despite potential challenges from rising labor and freight costs, the company maintains a positive revenue outlook for 2025, suggesting low to mid-single-digit growth and gross margin expansion.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Kontoor Brands' financial performance and market position, providing context to CEO Scott Baxter's recent stock transactions.
Kontoor Brands has demonstrated strong market performance, with InvestingPro data showing a remarkable 78.85% price total return over the past year. This aligns with an InvestingPro Tip indicating that the company has seen a "High return over the last year." The stock is currently trading near its 52-week high, with the price at 98.43% of its peak, suggesting investor confidence in the company's direction.
From a financial perspective, Kontoor Brands appears to be in a solid position. The company's P/E ratio stands at 19.67, which is relatively moderate for the apparel industry. An InvestingPro Tip notes that the company "Operates with a moderate level of debt," which could be seen as a positive factor for long-term stability.
It's worth noting that Kontoor Brands has been consistent in rewarding shareholders. An InvestingPro Tip highlights that the company "Has raised its dividend for 4 consecutive years," with a current dividend yield of 2.41%. This commitment to dividend growth may be attractive to income-focused investors.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Kontoor Brands, providing a deeper dive into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.