| Metric | Value ($ M) | Q2 FY25 |
|---|---|---|
| Revenue | 613.32 | 6.8% |
| Total Income | 613.32 | 6.8% |
| Expenditure | 523.22 | 9.8% |
| PBT | 73.60 | 24.7% |
| Net Profit | 92.44 | 25.1% |
| OPM | 14.69% | 2.76pp |
| NPM | 15.07% | 3.85pp |
| EPS | 1.67 | 25.6% |
Kontoor Brands Reports Q2 2026 Results and Raises Full Year Outlook
12 Aug 2026 · 12 Aug, 4:27 pm
Summary
Kontoor Brands announced strong second quarter results, with revenue increasing 19 percent year-over-year to $584 million, boosted by Helly Hansen and Wrangler growth. The company achieved significant gross margin expansion, with adjusted gross margin rising 710 basis points to 53.8 percent. Management raised the full-year outlook for adjusted EPS to $5.25-$5.35 and adjusted gross margin to 49.8-50.0 percent, reflecting confidence in year-to-date performance and strategic initiatives. The company also plans to deploy $400 million into an Accelerated Share Repurchase agreement upon the closing of the Lee business divestiture.
Key Highlights
- 1
Kontoor Brands reported second quarter revenue of $584 million, a 19 percent increase compared to the prior year, driven by Helly Hansen revenue and 2 percent growth in Wrangler.
- 2
Reported gross margin from continuing operations was 56.2 percent, with adjusted gross margin increasing 710 basis points to 53.8 percent year-over-year.
- 3
Reported diluted EPS from continuing operations was $1.03, while adjusted EPS increased 13 percent to $1.06 compared to the prior year.
- 4
The company raised its full year 2026 adjusted EPS outlook to a range of $5.25 to $5.35, representing 27 to 29 percent growth.
- 5
Full year 2026 adjusted gross margin is now expected to be between 49.8 and 50.0 percent, an increase of 330 to 350 basis points compared to the prior year.
- 6
Kontoor Brands expects to return more than $900 million of capital in 2026 through share repurchases, dividends, and voluntary debt payments.
- 7
The Lee business divestiture is on track to close in the fourth quarter, with plans to deploy expected proceeds into a $400 million Accelerated Share Repurchase agreement.
Management Comments
Scott Baxter
Our second quarter results were driven by growth from Wrangler, a stronger-than-expected contribution from Helly Hansen and robust gross margin expansion. Wrangler delivered another quarter of diversified growth led by strong performance in female, direct-to-consumer and international, coupled with exceptional profitability and cash generation. Helly Hansen delivered a better-than-expected quarter and for the first half of 2026, delivered double-digit revenue growth on a pro-forma basis and significant profitability improvement fueled in part by the benefits of our multi-brand platform.
Joe Alkire
As we look ahead, we are sharpening our portfolio focus and increased investment on our largest growth opportunities. We are raising our full year outlook based on the strength we have seen in our year-to-date results, and our confidence and visibility as we enter the second half of the year. With the Lee divestiture on track to close in the fourth quarter, we intend to deploy $400 million of the expected proceeds into an Accelerated Share Repurchase agreement based on the confidence we have in our long-term strategy and value creation potential.
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