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

9 Months Ended

Sep. 30, 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 September					Nine Months Ended September

(In thousands, except per share amounts)		2023		2022			2023		2022
Net income		$	59,531	$	51,083		$	162,223	$	193,888
Basic weighted average shares outstanding		56,151		55,428			55,962		55,830
Dilutive effect of stock-based awards		805		1,122			952		1,230
Diluted weighted average shares outstanding		56,956		56,550			56,914		57,060
Earnings per share:
Basic earnings per common share		$	1.06	$	0.92		$	2.90	$	3.47
Diluted earnings per common share		$	1.05	$	0.90		$	2.85	$	3.40

For the three and nine months ended September 2023 and September 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 nine months ended September 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 nine months ended September 2022, a total of 0.4 million and 0.3 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.