Kontoor BrandsKTB +0.78%80 Operating Margin % is 14.69% as of Mar. 2026, which is 20% above its 10-year median of 12.26. GuruFocus rates KTB with a GF Score™ of 80/100 and a GF Value™ of $73.85 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,043 Manufacturing - Apparel & Accessories companies, Kontoor Brands ranks better than 81.21% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Kontoor Brands Operating Margin % Related Terms
Kontoor Brands Operating Margin % Historical Data
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The historical data trend for Kontoor Brands's Operating 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.
KTB vs ZGN, PVH, COLM: Operating Margin % Comparison
For the Apparel Manufacturing subindustry, Kontoor Brands's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Kontoor Brands's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kontoor Brands's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Kontoor Brands's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Kontoor Brands (KTB) has a Operating Margin % of 14.69% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kontoor Brands and its competitors. This is 20% above median its historical median of 12.26. Over the past decade, Kontoor Brands' Operating Margin % has ranged from 5.90 to 13.97. According to the industry distribution chart, Kontoor Brands ranks #196 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 18.8%.
Is Kontoor Brands' Operating Margin % too high?
Kontoor Brands' current Operating Margin % of 14.69% is 20% above median its 10-year median of 12.26. Over the past 10 years, this metric has ranged from a low of 5.90 to a high of 13.97. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.08. Kontoor Brands' value of 14.69% is 260% above this industry median. Based on the distribution chart, Kontoor Brands ranks #196 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Kontoor Brands has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kontoor Brands' Operating Margin % compare to ZGN and PVH?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Kontoor Brands ranks #196 out of 1043 companies for Operating Margin %. This places Kontoor Brands in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.08. Kontoor Brands' value of 14.69% is 260% above this benchmark. Historically, Kontoor Brands' own Operating Margin % has ranged from 5.90 to 13.97 over the past decade. While the company's 10-year median is 12.26 vs. the industry median of 4.08, 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 Operating Margin % for a Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.08, based on 1,043 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kontoor Brands's current Operating Margin % of 14.69% is 260% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Kontoor Brands and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kontoor Brands's current Operating Margin % is 14.69%, which is 20% above median its own 10-year median of 12.26. 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 Fairly Valued. The stock's GF Value™ is $73.85, compared to a current price of $77.44 — trading 4.9% above its estimated fair value. The current Operating Margin % is 14.69%, which is 20% above median its 10-year median of 12.26 and 260% above the Manufacturing - Apparel & Accessories industry median of 4.08. Kontoor Brands' overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Kontoor Brands (KTB), the current Operating Margin % is 14.69% 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 $77.44 is trading 4.9% above its estimated GF Value™ of $73.85.
GuruFocus considers Kontoor Brands to be Fairly Valued.
Key valuation signals for KTB:
Operating Margin %: 14.69% (20% above median its 10-year median of 12.26)
GF Value™: $73.85 vs. price of $77.44 (4.9% above fair value)
Industry Position: 260% above the Manufacturing - Apparel & Accessories median (#196 of 1043)
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.
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