Kontoor Brands Inc., the parent company of brands including Wrangler and Lee, has announced plans for a new share repurchasing program. Authorized by the company’s board of directors, Kontoor Brands will start a stock buyback program of up to 300 million US dollars of its common stock.
The newly implemented authorization, which notably carries no set expiry date, supersedes the previous 200 million US dollar initiative that commenced on August 5, 2021. Much of the share repurchases is expected to be funded by the strong cash flow generated by the company’s operations.
Scott Baxter, president, CEO, and chair of Kontoor Brands, said in a statement: “The announcement of a 300 million US dollar share repurchase program illustrates our enhanced capital allocation optionality and reflects the strong cash flow generation of our business while underscoring Kontoor’s unrelenting focus on delivering superior total shareholder return over time.”
It is not uncommon for publicly traded companies like Kontoor Brand to repurchase their shares from the market in a bid to decrease the total number of their outstanding stock shares.
The announcement for the share repurchase program comes a little over a month after Kontoor Brands reported a revenue of 655 million US dollars for its third quarter, up 8 percent.
