This question is stated in a complicated way, but all the information we need is right there waiting to be untangled.
We'll start the clock when Todd arrives. At that time:
-- Kate has 5 done. Todd has none yet. Todd is 5 units behind.
From then on:
-- The clock is running. Kate adds 4 an hour to her total. Todd adds 5 an hour.
-- She started out 5 ahead of Todd when he arrived, but Todd does 1 more than Kate every hour.
-- So Kate's 'lead' shrinks by 1 every hour.
-- So Todd will catch up with Kate in 5 hours.
That's the answer to the question ... How long ? It doesn't ask us how many stockings have been filled, but that's easy for us to figure out:
-- Kate had 5 done when the clock started. She fills 4 every hour. After 5 hours, she has (5 x 4) = 20 more filled, and a total of 25 ready to sell.
-- Todd started out with none done. He fills 5 every hour. After 5 hours, he has (5 x 5) = 25 filled and ready to sell. He has caught up with Kate in 5 hours.