Kontoor Brands Inc #NYSE:KTB Price, Chart, News & Insight

Kontoor Brands, Inc. (NYSE: KTB) announced that its Board of Directors has declared a regular quarterly cash dividend of $0.52 per share of its common stock.

The cash dividend will be payable on June 20, 2025, to shareholders of record at the close of business on June 10, 2025.

Kontoor Brands Secures $1.5 Billion Credit Facility to Support Helly Hansen Acquisition

Greensboro, NC – Kontoor Brands, Inc. (NYSE: KTB) has entered into a new credit agreement totaling $1.5 billion to finance its planned acquisition of global outdoor and workwear brand Helly Hansen. The transaction is part of a definitive agreement announced in February 2025 with Canadian Tire Corporation, Limited.

The Second Amended and Restated Credit Agreement, signed on April 8, 2025, includes a $700 million term loan A facility, a $300 million delayed draw term loan facility, and a $500 million revolving credit facility. JPMorgan Chase Bank, N.A. will act as administrative agent on behalf of a syndicate of lenders.

Of the $700 million term loan, $340 million was disbursed at closing, while $360 million remains available for future draws. The delayed draw facility and revolving credit line will give Kontoor flexibility as it finalizes the Helly Hansen deal and manages future financing needs.

The new credit facilities mature in April 2030, with the exception of the delayed draw Tranche A-2 term loan, which matures in April 2028. The agreement includes customary financial covenants, such as a total leverage ratio capped at 4.5x and an interest coverage ratio of at least 3.0x, with limited flexibility for strategic acquisitions.

Borrowings can be made in multiple currencies and are subject to interest rates tied to SOFR or other benchmarks, plus an applicable margin. No draws were made from the $500 million revolving credit facility at the time of signing.

The obligations are secured by a first-priority lien on substantially all assets of the Company and its guarantor subsidiaries. The agreement includes standard restrictions on additional debt, asset sales, and dividend payments.

Kontoor previously disclosed its intent to use the proceeds to fund the Helly Hansen acquisition, a strategic expansion that will diversify its brand portfolio beyond its flagship Wrangler and Lee labels.

Kontoor Brands delivered a strong fourth quarter and full-year 2024 performance, with Q4 revenue increasing 4% to $699 million (5% on a constant currency basis), driven by growth in U.S. wholesale and global direct-to-consumer sales. Adjusted EPS increased 2% to $1.38, while gross margin expanded 160 basis points to 44.7%. Inventory declined 22% year-over-year, reflecting improved operational efficiencies.

For the full year, revenue remained stable at $2.61 billion, while adjusted EPS grew 10% to $4.89. Adjusted gross margin expanded 260 basis points to 45.1%, supported by lower product costs and supply chain efficiencies. The company returned $198 million to shareholders through dividends and share repurchases.

Looking ahead to 2025, Kontoor expects revenue growth of 1-3%, adjusted operating income growth of 5-7%, and adjusted EPS in the range of $5.20 to $5.30. The company projects operating cash flow to exceed $300 million, reinforcing its strong liquidity position.

source: Kontoor Brands, February 25, 2025.

Kontoor Brands, Inc. has entered into a definitive agreement to acquire Helly Hansen, a global outdoor and workwear brand, from Canadian Tire Corporation, Limited for approximately $900 million. The acquisition, which has been approved by Kontoor’s Board of Directors, is expected to close in the second fiscal quarter of 2025, subject to regulatory approvals and customary closing conditions. Kontoor plans to finance the acquisition through a combination of available cash and debt financing.

Kontoor Brands reported preliminary fourth-quarter 2024 revenue of approximately $699 million, marking a 4% increase year-over-year (5% in constant currency). The company's adjusted gross margin improved to 44.7%, up 160 basis points, excluding an out-of-period duty charge from the prior year. Reported earnings per share (EPS) were approximately $1.14, while adjusted EPS was $1.38, reflecting a 2% increase on an adjusted basis. When excluding prior-year tax benefits, adjusted EPS increased by approximately 23%. Full-year cash flow from operations reached approximately $368 million, and inventory levels decreased 22% to $390 million. CEO Scott Baxter attributed the strong finish to 2024 to consistent execution, strategic investments in brands, and the global team's efforts. He highlighted the benefits of Project Jeanius and the recently announced acquisition of Helly Hansen as key drivers for continued strong performance in 2025.

#NYSE:KTBFollow

#NYSE:KTB