DivestmentMay 7, 2026, 06:57 AM
Kontoor Brands to Divest Lee, Announces $750M Buyback, Strong Q1
AI Summary
Kontoor Brands reported stronger first-quarter 2026 results, exceeding expectations, and raised its full-year outlook. The company announced plans to divest its Lee business to sharpen strategic focus on growth assets and enhance capital allocation. Concurrently, the Board authorized a new $750 million share repurchase program, replacing the existing one, reflecting confidence in the business and commitment to shareholder returns.
Key Highlights
- Board authorized new $750 million share repurchase program.
- Company initiated competitive process to divest Lee business.
- Q1 revenue from continuing operations $613 million, up 45% YoY.
- Q1 adjusted EPS from continuing operations $1.06.
- Full-year revenue outlook from continuing operations $2.66B to $2.71B.
- Full-year adjusted EPS outlook from continuing operations $5.15 to $5.25.
- Wrangler global revenue increased 4% to $436 million.
- Adjusted gross margin from continuing operations rose 470 bps to 50.6%.