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

Quarterly report pursuant to Section 13 or 15(d)

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE

6 Months Ended

Jul. 03, 2021

The calculations of basic and diluted earnings (loss) per share ("EPS") is based on net income (loss) 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)	2021		2020		2021		2020
Net income (loss)	$	23,637	$	(33,262)	$	88,100	$	(35,974)
Basic weighted average shares outstanding	57,612		56,931		57,478		56,903
Dilutive effect of stock-based awards	1,744		—		1,651		—
Diluted weighted average shares outstanding	59,356		56,931		59,129		56,903
Earnings (loss) per share:
Basic earnings (loss) per common share	$	0.41	$	(0.58)	$	1.53	$	(0.63)
Diluted earnings (loss) per common share	$	0.40	$	(0.58)	$	1.49	$	(0.63)

For the three and six months ended June 2021, there were an immaterial number of anti-dilutive shares that were excluded from the dilutive loss per share calculation. A total of 2.1 million and 1.6 million of potentially dilutive shares were excluded from the diluted loss per share calculation for the three and six months ended June 2020, respectively, because the Company incurred a net loss for those periods.

For both the three and six months ended June 2021, a total of 0.2 million shares of PRSUs were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares. For both the three and six months ended June 2020, a total of 0.4 million shares of PRSUs were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares.