Kontoor BrandsKTB +1.65%80 Gross Margin % is 53.70% as of Mar. 2026, which is 29% above its 10-year median of 41.62. GuruFocus rates KTB with a GF Score™ of 80/100 and a GF Value™ of $73.57 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,024 Manufacturing - Apparel & Accessories companies, Kontoor Brands ranks better than 73.05% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Kontoor Brands had a gross margin of 53.70% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Kontoor Brands Gross Margin % Related Terms
Kontoor Brands Gross Margin % Historical Data
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The historical data trend for Kontoor Brands's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Apparel Manufacturing subindustry, Kontoor Brands's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kontoor Brands Gross Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Kontoor Brands's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kontoor Brands's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Kontoor Brands (KTB) has a Gross Margin % of 53.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kontoor Brands and its competitors. This is 29% above median its historical median of 41.62. Over the past decade, Kontoor Brands' Gross Margin % has ranged from 39.41 to 46.36. According to the industry distribution chart, Kontoor Brands ranks #276 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 27%.
Is Kontoor Brands' Gross Margin % too high?
Kontoor Brands' current Gross Margin % of 53.70% is 29% above median its 10-year median of 41.62. Over the past 10 years, this metric has ranged from a low of 39.41 to a high of 46.36. The Manufacturing - Apparel & Accessories industry median Gross Margin % is 28.42. Kontoor Brands' value of 53.70% is 89% above this industry median. Based on the distribution chart, Kontoor Brands ranks #276 out of 1024 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Kontoor Brands has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kontoor Brands' Gross Margin % compare to ZGN and PVH?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Kontoor Brands ranks #276 out of 1024 companies for Gross Margin %. This puts Kontoor Brands in the upper half of its industry. The industry median Gross Margin % is 28.42. Kontoor Brands' value of 53.70% is 89% above this benchmark. Historically, Kontoor Brands' own Gross Margin % has ranged from 39.41 to 46.36 over the past decade. While the company's 10-year median is 41.62 vs. the industry median of 28.42, Kontoor Brands has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Manufacturing - Apparel & Accessories company?
The median Gross Margin % among Manufacturing - Apparel & Accessories companies is 28.42, based on 1,024 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kontoor Brands's current Gross Margin % of 53.70% is 89% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Kontoor Brands and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Gross Margin % is 28.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kontoor Brands's current Gross Margin % is 53.70%, which is 29% above median its own 10-year median of 41.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kontoor Brands stock overvalued right now?
Based on GuruFocus' analysis, Kontoor Brands (KTB) is currently considered Modestly Overvalued. The stock's GF Value™ is $73.57, compared to a current price of $83.34 — trading 13.3% above its estimated fair value. The current Gross Margin % is 53.70%, which is 29% above median its 10-year median of 41.62 and 89% above the Manufacturing - Apparel & Accessories industry median of 28.42. Kontoor Brands' overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Kontoor Brands (KTB), the current Gross Margin % is 53.70% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kontoor Brands (KTB) Overvalued in 2026?
Based on GuruFocus' analysis, Kontoor Brands stock appears to be overvalued.
The current stock price of $83.34 is trading 13.3% above its estimated GF Value™ of $73.57.
GuruFocus considers Kontoor Brands to be Modestly Overvalued.
Key valuation signals for KTB:
Gross Margin %: 53.70% (29% above median its 10-year median of 41.62)
GF Value™: $73.57 vs. price of $83.34 (13.3% above fair value)
Industry Position: 89% above the Manufacturing - Apparel & Accessories median (#276 of 1024)
No single metric tells the full story. See the KTB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kontoor Brands Inc is a lifestyle apparel company. It designs, manufactures, procures, sells, and licenses apparel, footwear, and accessories, mainly under the brand names Wrangler, Lee, Helly Hansen, and a few other brands. The company also licenses the use of its brands in certain regions. Its products are sold through wholesale and direct-to-consumer channels in the United States (its key revenue-generating market) and internationally, mainly in Europe, Middle East and Africa (EMEA), Asia-Pacific (APAC), and Non-U.S. Americas regions. The company's three reportable segments are Wrangler, Lee, and Helly Hansen. The majority of its revenue is generated from the Wrangler segment, which offers denim, apparel, footwear, and accessories through Wrangler and various sub-brands.
80GF Score
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