KTB

Kontoor Brands, Inc.

DOUBTFUL — SCREEN DOES NOT PASSstock

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.

USD · millions
Interest-bearing debt / assets
43.16%Above limit
Below 33.333% under FTSE Yasaar

1,143.747 / 2,650.075

Cash + interest-bearing securities / assets
2.13%Within limit
Below 33.333% under FTSE Yasaar

56.411 / 2,650.075

Receivables + cash / assets
11.37%Within limit
Below 50% under FTSE Yasaar

301.407 / 2,650.075

Non-compliant income / revenue
0.36%Within limit
No more than 5% under FTSE Yasaar

2.184 / 613.322

FTSE Yasaar
v4.6, February 2026
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%.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt/assets is 43.16%, above the examined MSCI 33.33% limit; other known ratios are below the displayed limits.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Fails
Overall
Fails

Debt/assets is 43.16%, above the examined Malaysia SAC financial limit; this is not an official classification.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
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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