Kontoor Brands, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

EARNINGS PER SHARE

EARNINGS PER SHARE

6 Months Ended

Jul. 01, 2023

The calculations of basic and diluted earnings per share ("EPS") are based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding, respectively.

The following table presents the calculations of basic and diluted EPS:


	Three Months Ended June					Six Months Ended June

(In thousands, except per share amounts)		2023		2022			2023		2022
Net income		$	36,396	$	61,995		$	102,692	$	142,805
Basic weighted average shares outstanding		56,089		55,740			55,868		56,031
Dilutive effect of stock-based awards		757		971			1,025		1,284
Diluted weighted average shares outstanding		56,846		56,711			56,893		57,315
Earnings per share:
Basic earnings per common share		$	0.65	$	1.11		$	1.84	$	2.55
Diluted earnings per common share		$	0.64	$	1.09		$	1.80	$	2.49

For the three and six months ended June 2023 and June 2022, an immaterial number of shares were excluded from the dilutive earnings per share calculations because the effect of their inclusion would have been anti-dilutive.

For both the three and six months ended June 2023, a total of 0.6 million shares of performance-based restricted stock units ("PRSUs") were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares. For the three and six months ended June 2022, a total of 0.2 million and 0.1 million shares, respectively, of PRSUs were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares.