President, Chief Executive Officer and Chairman of the Board, Kontoor Brands, Wrangler (brand of Kontoor Brands, Inc.)
Make it Make Cent$ Ep 1 - Creating a Better Future Through Financial Literacy with Scott Baxter
Welcome to the first episode of Make It Make Cents, a podcast powered by Acclaim Federal Credit Union that breaks down the ...
About Scott Baxter
Scott Baxter, chairman, president and CEO of Kontoor Brands, discussed the company's acquisition of Helly Hansen for roughly $900 million in a February 2025 interview with Jim Cramer on "Mad Money." Baxter said the acquisition gave Kontoor both an outdoor and workwear brand, describing it as a "really nice fit" that offers a growth opportunity. He noted that the company had been patient in looking for deals and moved quickly when the Helly Hansen opportunity arose. Kontoor also preannounced fourth-quarter results that beat expectations on both revenue and earnings. In a separate October 2024 podcast focused on financial literacy, Baxter discussed personal finance strategies, including the importance of building a budget, establishing an investment pattern, and paying down debt. He recounted his experience during the 2008 financial crisis, saying it was a "real lesson" in how quickly a portfolio can lose value. Baxter has also emphasized Kontoor's commitment to Greensboro, North Carolina, stating in a 2019 interview that he was "100 percent committed" to keeping the company's headquarters there and investing in the community.
Transcript (20 segments)
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Narrator0:08
Have you ever heard financial terms or concepts and thought this doesn't make sense? Well, you're in luck. Welcome to Make It Make Sense, the podcast powered by Acclaim Federal Credit Union, where we break down the world of financial literacy. At Acclaim, our goal is to connect you to financial wellness, and this podcast is here to lead the way. Whether you're just starting out or looking to sharpen your financial skills, we've got you covered. Let's make it make sense together. Here's your host, Christy Smith.
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Christy Smith0:39
Welcome to the inaugural episode of Make It Make Sense, where we empower our listeners with financial concepts that are clear, practical, and easy to understand. Today we have the distinct honor of welcoming Scott Baxter, President and CEO of Kontoor Brands, as our very first guest. This choice is significant, not only because of Scott's impressive leadership, but also due to the deep-rooted connection between Kontoor Brands and Acclaim Federal Credit Union. This history exemplifies the credit union's mission to support the financial well-being of all our members, fostering a culture of empowerment and community growth. Together we'll take the essential topics that can help individuals take control of their financial futures, whether they're just starting out or looking to enhance their understanding of money management. So let's dive in and make financial concepts make sense. Scott, thank you so much for your time today, not only for your leadership at Kontoor Brands and your support of Acclaim Federal Credit Union. It's clear that Kontoor has had a lasting impact on our Greensboro community that we both love. And Acclaim Federal Credit Union's roots with Kontoor provide financial support and education to so many. I'd love to dive into a topic that's crucial to both of our missions: financial literacy.
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Scott Baxter2:24
I could not agree more. Thank you very much for having me on. I love the fact that we have a great history here together with our people. That's just terrific. Best of luck to you folks in everything you're doing and the mission you're on. But yeah, I think it's really important in the world that we live in now because so many people are making bad decisions that handicap them for a period of time. Those decisions have a snowballing effect that gets more difficult to reverse. That's why I think while you're in school, take financial courses, learn to build budgets. Even in high school with money from a part-time job, it's critical. Also, do your best to eliminate debt. The thing I learned most is that if you can build a budget and stick to it, it shows discipline and will help you in the future. Start an investment pattern, even as simple as saving $100 per paycheck. That breeds better things. As for debt, I came out of college with significant debt. I put a big piece of paper with Scotch tape on it showing the debt amount and crossed it out every time I paid more back. That helped discipline me to realize what an albatross debt can be. So I think it's really important.
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Christy Smith4:14
Yeah, thank you. Those are great tips. That's the reason we wanted to start this podcast: to empower our communities, our members, and the younger generation to understand how important financial literacy is and to connect to financial wellness. It's one of our biggest goals to help our members because when we teach them, that empowers them, and that can be generational. We appreciate the Kontoor connection with Acclaim Federal Credit Union, which has been supporting Kontoor employees for decades. Why do you believe financial literacy is so crucial, especially for young adults entering the fast-paced financial world?
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Scott Baxter5:04
I think it gives them options. That's the most important thing. When you're young, you don't want to get yourself in a position where you don't have options to buy a vehicle, buy a home, rent an apartment, move out on your own, or just for personal well-being. Debt carries a burden both financially and from a mental health standpoint. Managing your investments and personal financial well-being puts you in a much better place to have options and freedom. That's really what you want. To start that way when you're young and grow it is a powerful lesson.
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Christy Smith6:00
Yeah, I appreciate that you talked about mental health. There's such a connection between finances and mental health. One of the biggest stressors in life is finances. That's why we use the term 'financial wellness'. You've led some of the world's most recognized brands, congratulations. Reflecting on your personal journey, what's one financial lesson you wish you had learned earlier in your career, and how has that shaped how you view money management now?
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Scott Baxter6:52
It's absolutely the power of debt and the power of putting off purchases. I go back to high school and college. I paid for my own education, so it was expensive. I had to take student loans. If I could do it over, I would think that through because that debt limits your choices. The key for me was deciding I'm not going to carry any debt. I'll pay cash for things. I'm not going to want something so much that I go into debt for it. That was the biggest lesson: put off what you can't afford and pay your debt. It gives you options and frees your mind from worry.
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Christy Smith8:00
Yeah, that's a great point. As a society, we want things instantly. Making smart choices and delayed gratification is fantastic. Many people look to you as a business leader. We all experience moments that shape our financial outlook. Could you share a personal story of a financial mistake or victory that significantly influenced how you approach money today?
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Scott Baxter8:50
There are probably two. A victory was paying off all my student loans and credit card debt coming out of college. Instead of making more purchases, I hunkered down and paid down the debt. The other thing was I started watching financial news, got Money Magazine at an early age to learn about options. You need to know how an investment works before you make it. The scariest time was the Great Recession of 2008. It made me realize how quickly a portfolio can be gone. I told my wife to go to the bank and get a couple thousand dollars cash. She called back an hour later and said the bank had no cash left and closed for the day. That was a gut punch. You have to be really cautious.
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Christy Smith10:44
Yeah, that's a scary story. It reminds me of what happened with Silicon Valley Bank. I worked as a collection manager during the crisis and my heart went out to members who lost everything and had to rebuild. It's important to make wise choices, keep some cash available. Look at what happened in Western North Carolina. History repeats itself. As CEO of a company that helped form a credit union for its employees, Kontoor has been innovative. The working class formed Acclaim Federal Credit Union for better deposit rates and lower loan rates. We are so appreciative. Where would you suggest people go to improve their financial knowledge?
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Scott Baxter13:08
That's a great question. I think it's really important for people of any age. Take a class on financial well-being. Go to your company and speak with investment counselors. Read the Wall Street Journal, watch CNBC. Become knowledgeable because that knowledge gives you power to understand how an investment works and when to change it. Until you understand the inner workings, don't do it. Once you feel comfortable, you have real decision-making power.
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Christy Smith14:18
That's so true. We always say if it sounds too good to be true, it probably is. We see members who get into investments they don't understand and it never turns out well. In your experience, what's a common myth you'd like to debunk for those trying to gain better control over their money?
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Scott Baxter14:59
The myth that 'I'm too far in debt, I can't do it.' That's not true. You can develop a plan quickly if you buckle down and make good decisions. You may have to change lifestyle: quit the gym, cut Starbucks, skip a vacation. But the freedom you get after paying off debt is huge. Write down your plan and follow it. That's the most important goal.
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Christy Smith15:53
That's really important. We teach financial literacy and always say write it down. Track expenses like eating out and subscriptions that creep up. Many people have multiple streaming services they don't even watch. We go on autopilot. Write a plan. I'm going to sneak in a question: who was the best mentor for you when it comes to finances?
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Scott Baxter16:59
I think it was my wife, Donna. She's very rational. We were a good combination. I came into the marriage with debt, and we figured it out together from a young age. Having someone to hold you accountable is really important.
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Christy Smith17:35
No, that's great. I love that you said your wife. It shows a true partnership. That's really sweet. I'm excited to follow Kontoor. You're innovative. I saw you're starting a hall of fame. That's great to recognize employees.
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Scott Baxter18:13
Yeah, we did. Thank you. It's really fun. I told you I was a semi stalker. It's special to recognize employees who have been with you. It's a wonderful thing for the company.
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Christy Smith18:37
I truly appreciate you taking time to discuss financial literacy. It's near and dear to our heart. Your support of Acclaim Federal Credit Union uplifts our community in Greensboro. We're honored to have you and grateful for all you've done for our city. You've done a fantastic job making financial concepts make sense. We appreciate you.
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Scott Baxter19:29
Thank you very much for having me on. Best of luck to Acclaim. Appreciate everything you do for the community and our employees. Have a wonderful day.
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Narrator19:40
Scott, thank you for listening. Please visit us at acclaimfcu.org for more valuable resources. Remember to click the follow or subscribe button to make sure you don't miss future episodes.