DivestmentMay 14, 2026, 02:52 PM
Kontoor Brands Q1 Net Income $92.4M; Plans Lee Divestment
AI Summary
Kontoor Brands reported strong financial results for Q1 FY26, with net income more than doubling to $92.4 million and net revenues increasing to $613.3 million. The company announced a planned divestiture of its global Lee® brand, which has been classified as held-for-sale and discontinued operations. Additionally, Kontoor Brands completed the sale of its Rock & Republic® brand in March 2026 and recognized a $53.7 million receivable for IEEPA tariff refunds, positively impacting cost of goods sold.
Key Highlights
- Planned divestiture of the global Lee® business, classified as held-for-sale and discontinued operations.
- Completed sale of the Rock & Republic® brand and associated business on March 3, 2026.
- Q1 FY26 Net Income increased to $92.4 million from $42.9 million in Q1 FY25.
- Q1 FY26 Net Revenues rose to $613.3 million from $423.0 million in Q1 FY25.
- Diluted EPS for Q1 FY26 was $1.65, up from $0.76 in Q1 FY25.
- Wrangler segment net revenues were $435.8 million, up from $420.2 million in Q1 FY25.
- Helly Hansen segment contributed $165.5 million in net revenues for Q1 FY26.
- Recognized a $53.7 million net receivable for IEEPA tariff refunds, reducing cost of goods sold by $49.0 million.
Price Impact
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