Quarterly ResultAug 12, 2026, 05:13 PM
Kontoor Brands to Divest Lee® Business for up to $1.0B; Q2 Revenue Up 18.6%
AI Summary
Kontoor Brands entered a definitive agreement to sell its global Lee® business to ABG-Storm LLC for $750.0 million in cash at closing, with an additional $250.0 million earnout opportunity. For Q2 FY26, net revenues from continuing operations increased 18.6% to $584.3 million, while income from continuing operations slightly decreased 2.8% to $57.0 million. Diluted EPS from continuing operations was $1.03. The company also recognized a $15.4 million gain from the sale of a manufacturing facility and a $53.7 million net receivable for IEEPA tariff refunds.
Key Highlights
- Signed agreement to sell Lee® business for $750M cash + $250M earnout.
- Q2 FY26 Net revenues from continuing operations increased 18.6% to $584.3 million.
- Q2 FY26 Income from continuing operations decreased 2.8% to $57.0 million.
- Q2 FY26 Diluted EPS from continuing operations was $1.03.
- Recognized $15.4 million gain from sale of manufacturing facility assets.
- Identified $53.7 million net receivable for IEEPA tariff refunds.
- Repurchased $75.4 million of Common Stock in six months ended June 2026.
- Paid $58.5 million in dividends in six months ended June 2026.
Price Impact
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