Kontoor Brands shareholders approve executive pay, elect directors

On April 24, 2025, Kontoor Brands , Inc., a leading apparel company with a market capitalization of $3.4 billion, held its 2025 Annual Meeting of Shareholders, during which several key decisions were made by the company’s shareholders. The company, which has maintained strong financial health according to InvestingPro metrics, enters this meeting with a solid track record of four consecutive years of dividend increases. According to the information based on the latest SEC filing, the shareholders voted on three major proposals.

In the first proposal, shareholders elected eight directors to serve one-year terms expiring at the 2026 Annual Meeting. The elected directors are Scott H. Baxter (NYSE:BAX), Maryelizabeth R. Campbell, Ashley D. Goldsmith, Robert M. Lynch, Andrew E. Page, Mark L. Schiller, Robert K. Shearer, and Shelley Stewart, Jr. Each nominee received a significant majority of the votes cast, with Scott H. Baxter receiving 46,285,673 votes for, 413,186 against, and 129,901 abstentions.

The second proposal involved the ratification of PricewaterhouseCoopers LLP as the company’s independent registered public accounting firm for the fiscal year ending January 3, 2026. This proposal was also approved by a substantial majority, with 51,493,184 votes for, 113,908 against, and 173,421 abstentions.

Finally, the third proposal was a non-binding advisory vote to approve the compensation of the company’s named executive officers. This compensation was disclosed in the definitive Proxy Statement dated March 6, 2025. Shareholders voted to approve this proposal with 45,427,182 votes for, 1,237,755 against, and 163,823 abstentions.

The outcomes of these votes reflect shareholder confidence in the company’s leadership and strategic direction. The approval of the executive compensation, in particular, suggests that investors are satisfied with the performance and remuneration of the company’s top management. This confidence appears well-founded, as InvestingPro data shows the company maintains a healthy 45% gross profit margin and has generated $349 million in levered free cash flow over the last twelve months.

Kontoor Brands, Inc., headquartered in Greensboro, North Carolina, is known for its portfolio in men’s and boys’ furnishings, work clothing, and allied garments. The company trades on the New York Stock Exchange under the ticker symbol (NYSE:KTB).

The information for this report is derived from Kontoor Brands’ SEC filing and is intended to provide shareholders and the public with a transparent overview of the company’s recent shareholder meeting outcomes.

In other recent news, Kontoor Brands reported its fourth-quarter 2024 financial results, surpassing analyst expectations with earnings per share (EPS) of $1.38, compared to the forecast of $1.33. Revenue for the quarter reached $699 million, slightly above the anticipated $696.26 million. Despite the positive earnings, the company’s stock experienced a decline, reflecting broader market concerns. Looking ahead, Kontoor Brands is preparing for its acquisition of Helly Hansen from Canadian Tire, valued at approximately $900 million. This acquisition is expected to diversify Kontoor’s portfolio and strengthen its presence in the outdoor and workwear markets.

However, S&P Global Ratings has downgraded Kontoor’s outlook to negative due to the debt-funded nature of this acquisition, which is expected to increase the company’s adjusted debt to EBITDA ratio. UBS analyst Mauricio Serna adjusted Kontoor Brands’ price target from $108 to $96, maintaining a Buy rating, while Stifel analysts reduced their target from $93 to $83, retaining a Hold rating. Both UBS and Stifel acknowledged the potential benefits of the Helly Hansen acquisition, with UBS projecting a rebound in EPS after fiscal year 2025. Kontoor’s Project Jeanius, aimed at cost savings and reinvestment in growth, is another significant initiative the company is focusing on, although its benefits are materializing more slowly than anticipated.

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