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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.

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Both Levi Strauss & Co. and Kontoor Brands began trading this spring, so I thought it would be interesting to compare both companies, to see if the casual clothing segment is worthy of investment and whether one company has an edge over the other.

Right off the bat, this is a low-energy industry. The P/S (Price to Sales ratio) of the S&P 500 is right around 2, while the P/S of LEVI is 1.5 and .76 for KTB. It is also a labor-intensive industry. LEVI has 15,100 employees that generated $5,575,440,000 in revenue, last year. That’s just $369k per employee. KTB is even lower, with 17,000 employees responsible for its $2,763,998,000 in revenue, for just $163k per employee.

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