Kontoor Brands (KTB, Financial) (KTB - $40.56– NYSE) is the second-largest manufacturer in the global jeans market, with its portfolio largely consisting of the Wrangler and Lee brands. Shares rallied during the quarter as Kontoor management reinstated the company's dividend and also resumed earnings guidance at a level well ahead of where analyst expectations had been. With a strong sell-in of Lee at Walmart and robust digital sales, Kontoor saw its revenues stabilize sooner than previously expected. A shift to casual wear during the pandemic also benefited Kontoor. Finally, Kontoor's gross margin has been buoyed by product cost improvements, channel mix and product mix.
From Keeley Asset Management Corp (Trades, Portfolio)'s Small Cap Dividend Value Fund fourth-quarter 2020 shareholder commentary.
