Kontoor Brands Inc (KTB)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	341,111	278,666	315,037	239,275	53,384
Revenue	US$ in thousands	2,620,280	2,579,340	2,604,520	2,434,200	2,097,840
Gross profit margin		13.02%	10.80%	12.10%	9.83%	2.54%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $341,111K ÷ $2,620,280K
= 13.02%

Based on the data provided, Kontoor Brands Inc's gross profit margin has shown a positive trend over the past five years. The margin increased steadily from 2.54% as of December 31, 2020, to 13.02% as of December 31, 2024. This improvement indicates that the company has been able to effectively manage its cost of goods sold and generate more profitability from its sales over the period.

The significant increase in the gross profit margin reflects enhanced efficiency in production or sourcing, better pricing strategies, or effective cost control measures implemented by Kontoor Brands Inc. This improvement also suggests that the company may have successfully optimized its supply chain or product mix to enhance profitability.

Overall, the rising trend in gross profit margin demonstrates Kontoor Brands Inc's ability to enhance its operational performance and generate higher profitability from its core business activities. It indicates the company's strength in managing its direct costs and maximizing the profitability of its products or services.