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Levi’s vs. Wrangler’s August Update

Levi's vs. Wrangler's through AugustThings are starting to get interesting! These two have been trading in lock-step for a month, but Kontoor is now breaking out on a decent earnings release that is showing good results against their plan.

Excluding Sears, Wrangler U.S. wholesale revenue was up 2% in the first half of 2019, and the company expects global sales to improve in the second half.

Sears filed for Chapter 11 in October of last year. As I discussed in May, if Kontoor can grow their sales without exploding the budget, they are definitely going to enjoy a higher multiple on the price of their stock. Another tidbit that popped-up in July was that Kontoor declared a regular quarterly dividend of 56 cents per share (LEVI does not pay a dividend). That's a healthy 5.8% yield, at today's $33.82 close.

-- Scrib