ktb-20240330

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________ to ________

Commission file number: 001-38854

KONTOOR BRANDS, INC.

(Exact name of registrant as specified in its charter)


North Carolina			83-2680248
(State or other jurisdiction of incorporation or organization)			(I.R.S. employer identification number)

400 N. Elm Street

Greensboro, North Carolina 27401

(Address of principal executive offices)

(336) 332-3400

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, no par value	KTB	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

The number of shares of Common Stock of the registrant outstanding as of April 26, 2024 was 55,829,679.

KONTOOR BRANDS, INC.

Table of Contents


			Page
Part I — Financial Information

Item 1. Financial Statements (Unaudited)			3

Consolidated Balance Sheets: March 2024 , December 202 3 and March 2023			3

Consolidated Statements of Operations: Three months ended Mar ch 2024 and March 202 3			4

Consolidated Statements of Comprehensive Income: Three months ended March 2024 and March 2023			5

Consolidated Statements of Cash Flows: Three months ended March 2024 and Ma rch 2023			6

Consolidated Statements of Equity: Three months ended March 2024 and March 2023			7

Notes to Consolidated Financial Statements			8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			21

Item 3. Quantitative and Qualitative Disclosures about Market Risk			29

Item 4. Controls and Procedures			29

Part II — Other Information

Item 1. Legal Proceedings			30

Item 1A. Risk Factors			30

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			30

Item 5. Other Information			30

Item 6. Exhibits			31

Signatures			32

Kontoor Brands, Inc. Q1 FY24 Form 10-Q 2

PART I — FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

KONTOOR BRANDS, INC.

Consolidated Balance Sheets

(Unaudited)


(In thousands, except share amounts)	March 2024		December 2023		March 2023
ASSETS
Current assets
Cash and cash equivalents	$	215,059	$	215,050	$	52,677
Accounts receivable, net	239,632		217,673		224,024
Inventories	501,341		500,353		660,089
Prepaid expenses and other current assets	104,208		110,808		102,757
Total current assets	1,060,240		1,043,884		1,039,547
Property, plant and equipment, net	110,304		112,045		104,999
Operating lease assets	56,268		54,812		55,116
Intangible assets, net	12,135		12,497		13,173
Goodwill	209,566		209,862		209,904

Other assets	212,924		212,339		220,831
TOTAL ASSETS	$	1,661,437	$	1,645,439	$	1,643,570
LIABILITIES AND EQUITY
Current liabilities
Short-term borrowings	$	—	$	—	$	7,255
Current portion of long-term debt	20,000		20,000		12,500
Accounts payable	187,200		180,220		163,871
Accrued and other current liabilities	163,251		171,414		197,203
Operating lease liabilities, current	22,187		21,003		21,241
Total current liabilities	392,638		392,637		402,070
Operating lease liabilities, noncurrent	37,016		36,753		32,472

Other liabilities	85,344		80,215		81,796
Long-term debt	759,246		763,921		827,944

Total liabilities	1,274,244		1,273,526		1,344,282
Commitments and contingencies
Equity
Preferred Stock, no par value; shares authorized, 90,000,000; no shares outstanding at March 2024, December 2023 and March 2023	—		—		—
Common Stock, no par value; shares authorized, 600,000,000; shares outstanding of 55,691,516 at March 2024; 55,720,251 at December 2023 and 55,933,661 at March 2023	—		—		—
Additional paid-in capital	284,301		273,197		251,108
Retained earnings	171,124		166,567		116,185
Accumulated other comprehensive loss	(68,232)		(67,851)		(68,005)
Total equity	387,193		371,913		299,288
TOTAL LIABILITIES AND EQUITY	$	1,661,437	$	1,645,439	$	1,643,570

See accompanying notes to unaudited consolidated financial statements.

3 Kontoor Brands, Inc. Q1 FY24 Form 10-Q

KONTOOR BRANDS, INC.

Consolidated Statements of Operations

(Unaudited)


	Three Months Ended March

(In thousands, except per share amounts)		2024		2023
Net revenues		$	631,202	$	667,123
Costs and operating expenses
Cost of goods sold		346,058		380,422
Selling, general and administrative expenses		200,714		191,752

Total costs and operating expenses		546,772		572,174
Operating income		84,430

SEC Form 10-Q filed by Kontoor Brands Inc.