KTB
Kontoor Brands, Inc.
Is KTB Halal?
Denim and outdoor apparel (Wrangler, Helly Hansen) — selling clothing is permissible, but the debt taken on for the Helly Hansen acquisition keeps the leverage screen borderline.
What You Should Know
Kontoor Brands, Inc. is a global apparel company that designs and sells denim, casual, and outdoor/workwear under Wrangler, Lee and Helly Hansen. Selling clothing is generally permissible, and basic denim and outdoor apparel carry no modesty concern of the kind that affects intimate-apparel names. Its April 4, 2026 Form 10-Q reports $2,650.075 million of assets, $1,143.747 million of interest-bearing debt, $56.411 million of cash, $244.996 million of receivables and $613.322 million of quarterly net revenue. Debt/assets is 43.16%, above the displayed 33.333% limit; liquidity and receivables-plus-cash pass. The filing reports $2.184 million of interest income, or 0.36% of quarterly revenue.
⚠️ Concerns
- •Debt/assets is 43.16% ($1,143.747 million / $2,650.075 million), above the displayed 33.333% limit
- •Cash/assets is 2.13% and receivables-plus-cash/assets is 11.37%, below the displayed limits
- •The balance sheet includes debt taken on for the Helly Hansen acquisition and discontinued-operation balances
- •Interest income/revenue is 0.36%; follow the chosen purification guidance
- •Re-screen after debt paydown, brand divestitures or a newer filing
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-04; calculated 2026-07-15.
1,143.747 / 2,650.075
56.411 / 2,650.075
301.407 / 2,650.075
2.184 / 613.322
- Financial
- Fails
- Overall
- Fails
Debt/assets is 43.16%, above the examined 33.333% limit; liquidity/assets is 2.13%, receivables plus cash/assets is 11.37% and interest income/revenue is 0.36%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 43.16%, above the examined MSCI 33.33% limit; other known ratios are below the displayed limits.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 43.16%, above the examined Malaysia SAC financial limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based debt screen already fails.
Business-activity disclosure
Kontoor designs, procures, sells and licenses denim, casual and outdoor/workwear apparel under Wrangler, Lee and Helly Hansen. Clothing is generally permissible, while product presentation, licensing, sourcing, brand divestitures and end uses require qualitative review.
Limitation: The filing does not allocate every product, brand, customer or end use into a universal prohibited-activity numerator.
Purification
Kontoor discloses $2.184 million of interest income, but no scholar-approved fixed purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from Kontoor's April 4, 2026 Form 10-Q.
- Debt combines $13.125 million of current long-term debt and $1,130.622 million of long-term debt; operating leases are excluded.
- Cash and cash equivalents are $56.411 million; no separate interest-bearing securities balance is identified.
- Accounts receivable, net are $244.996 million and first-quarter net revenue is $613.322 million.
- Interest income is $2.184 million for the quarter and is used as the disclosed-income numerator.
- The balance sheet includes discontinued-operation balances as presented by the issuer.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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