Kontoor Brands Inc (KTB)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	331,040	312,384	291,238	265,018	277,484	287,450	264,942	299,515	315,037	285,526	312,053	258,802	239,275	233,192	222,028	154,598	45,999	652,396	633,509	719,959
Revenue (ttm)	US$ in thousands	2,610,986	2,571,058	2,544,950	2,544,398	2,579,338	2,637,077	2,590,654	2,589,646	2,604,516	2,540,463	2,588,165	2,465,948	2,434,204	2,469,159	2,394,349	2,247,901	2,097,839	2,049,753	2,117,336	2,390,409
Gross profit margin		12.68%	12.15%	11.44%	10.42%	10.76%	10.90%	10.23%	11.57%	12.10%	11.24%	12.06%	10.50%	9.83%	9.44%	9.27%	6.88%	2.19%	31.83%	29.92%	30.12%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $331,040K ÷ $2,610,986K
= 12.68%

The gross profit margin of Kontoor Brands Inc has exhibited fluctuations over the periods provided. Starting at 30.12% in March 2020, the margin slightly decreased to 29.92% by June 2020 before experiencing a significant uptick to 31.83% by September 2020. However, there was a notable decline in gross profit margin to 2.19% by December 2020, which may raise concerns about the company's ability to efficiently manage its production costs.

Subsequently, there were gradual improvements in the gross profit margin from March 2021 (6.88%) to June 2022 (12.06%), indicating enhanced profitability. The margin dipped slightly in the following quarters but overall remained above the single-digit range, suggesting the company's ability to effectively control its production expenses and generate profit from its core operations.

The gross profit margin reached its peak of 12.68% by December 2024, indicating a positive trend towards maintaining healthy profitability levels. Overall, the fluctuation in Kontoor Brands Inc's gross profit margin highlights the company's ability to adapt to changing market conditions and optimize its production processes to enhance profitability.