Kontoor Brands Inc (KTB)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	278,666	315,037	239,275	53,384	151,373
Revenue	US$ in thousands	2,579,340	2,604,520	2,434,200	2,097,840	2,548,840
Gross profit margin		10.80%	12.10%	9.83%	2.54%	5.94%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $278,666K ÷ $2,579,340K
= 10.80%

Kontoor Brands Inc's gross profit margin has fluctuated over the past five years. In 2019, the margin was at 5.94%, indicating that the company was able to generate a reasonable level of profit after accounting for the cost of goods sold. However, there was a significant increase in the gross profit margin to 12.10% in 2022, reflecting improved efficiency in production or potentially higher selling prices.

The margin dipped in 2023 to 10.80%, which could suggest slightly lower profitability compared to the prior year, but still represents a relatively healthy level of gross profit relative to revenue. In contrast, 2020 saw a notably low gross profit margin of 2.54%, pointing to challenges in managing production costs or pricing strategies during that period.

Overall, while there have been fluctuations in Kontoor Brands Inc's gross profit margin in recent years, it is essential for the company to continue monitoring and managing its cost structure and product pricing to ensure sustained profitability.