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Kontoor Brands Q2 earnings call highlights. August 12, 2026 Key points. * Kontoor raised its 2026 profitability outlook while maintaining revenue guidance of $2.66 billion to $2.71 billion. Adjusted EPS is now expected at $5.25 to $5.35, supported by a higher gross-margin forecast and stronger second-quarter results. * Wrangler and Helly Hansen delivered key growth: Wrangler's direct-to-consumer revenue rose 12% and the brand gained more than 100 basis points of market share, while Helly Hansen revenue reached $114 million and operating margins improved significantly. * The planned Lee divestiture to Authentic Brands Group remains on track for the fourth quarter. Kontoor expects to use most proceeds for a new $400 million accelerated share repurchase, debt reduction and broader capital returns exceeding $900 million in 2026. * Five stocks to consider instead of Kontoor Brands. Kontoor Brands NYSE: KTB raised portions of its 2026 outlook after reporting second-quarter adjusted earnings per share of $1.60, up 13% from the prior year, as stronger gross margin and contributions from Helly Hansen supported results. President and CFO Joe Alkire said the company's first-half revenue reached $1.2 billion, an increase of 31% from the prior year, while adjusted gross margin rose 590 basis points to 52.2%. First-half adjusted EPS increased 36% to $2.12. For the second quarter, adjusted gross margin increased 710 basis points year over year to 53.8%. Alkire attributed the improvement to Project Genius savings, Helly Hansen's higher gross-margin contribution, and favorable channel, product and pricing mix. SG&A expenses totaled $221 million, or 37.8% of revenue, reflecting a full quarter of Helly Hansen expenses and increased spending on direct-to-consumer, demand creation and technology initiatives. Wrangler posts DTC growth and market-share gains. Wrangler global revenue increased 1% in the second quarter, led by 12% growth in direct-to-consumer sales. U.S. revenue also increased 1%, with DTC revenue up 9% and wholesale revenue relatively flat. International revenue increased 8%, driven by 27% DTC growth and 4% wholesale growth. Scott Baxter, chief executive officer and chairman, said the brand gained more than 100 basis points of market share in its core bottoms business during the quarter, according to Circana. Alkire said Wrangler recorded its 17th consecutive quarter of market-share gains in men's and women's bottoms. Wrangler's first-half female revenue rose 20%, with growth accelerating in the second quarter, while Western revenue grew at a low-double-digit rate in the first half. Baxter said the company continues to invest in talent, design, product development and demand creation for the female business, which represents about 10% of Wrangler revenue despite females comprising more than half of the U.S. denim market, according to Alkire. The company also is expanding Wrangler's physical retail presence. After opening a full-price store in Fort Worth, Texas, Kontoor secured two additional Texas locations scheduled to open in early 2027. Alkire said the company plans to test and scale the retail concept while investing in digital capabilities, artificial intelligence, site experience and an expanded loyalty program. Discover more Stock split calculator Company Earnings Management expects Wrangler to generate mid-single-digit growth in the second half, excluding the effect of a 53rd week in 2025. Alkire said the outlook is supported largely by committed new distribution, including Lowe's Home Improvement, as well as continuing growth in female, DTC and Western categories. Retail partners, however, remain cautious about inventory commitments, management said. Helly Hansen exceeds expectations. Helly Hansen generated $114 million in second-quarter revenue, up 6% on a pro forma basis and above management's expectations. First-half pro forma reported revenue increased 12%, while underlying constant-currency growth was in the mid-single-digit range. Sport revenue totaled $70 million, with the strongest growth in the U.S., Nordic countries and the Alps region of Europe. Workwear revenue was $37 million, with growth in the U.S. and the Alps region. Management said workwear e-commerce, though still small, was particularly strong in the second quarter. Alkire said Helly Hansen produced positive operating profit during what he described as its seasonally smallest quarter, helped by sourcing, logistics, planning and procurement improvements, better inventory quality, more full-price selling, less promotional activity, pricing and synergies. Through the first half, Helly Hansen's operating margin expanded about 600 basis points to 7%, according to Baxter. The company remains committed to reaching a mid-teens operating-margin target for the brand. Management is separating Helly Hansen's sport and workwear commercial organizations and has hired a North America general manager for the sport business. Kontoor also plans incremental spending on demand creation during the second half, particularly in the U.S., where Alkire said Helly Hansen's aided brand awareness is about 30%. Helly Hansen will begin appearing in 18 Dick's Sporting Goods House of Sport locations in October, Baxter said. The company plans to provide further details on the brand's strategy at an investor day in Norway on Sept. 2. Lee divestiture and capital plans. Kontoor said its divestiture of the Lee brand to Authentic Brands Group remains on track to close in the fourth quarter. The company expects to use most of the net proceeds to fund a new $400 million accelerated share repurchase program, with the remainder directed toward voluntary debt repayment. Alkire said Kontoor expects to offset approximately $40 million of stranded costs over 12 to 18 months following the sale. He said the company expects the Lee divestiture to be immaterial to EPS over that period, supported by cost actions, the anticipated share repurchase and debt reduction. Kontoor repurchased $50 million of common stock in the second quarter and $75 million year to date at an average price of $75 per share. It ended the quarter with $700 million remaining under its existing repurchase authorization. The board also declared a quarterly cash dividend of $0.53 per share. Inventory declined 3% year over year to $526 million, primarily reflecting reductions at Helly Hansen. Net debt stood at $1.1 billion, with $58 million in cash and an undrawn $500 million revolver. Updated 2026 outlook. The company maintained its full-year revenue outlook of $2.66 billion to $2.71 billion but raised its adjusted gross-margin forecast to 49.8% to 50%, from a prior range of 48.3% to 48.5%. * Adjusted operating income is now expected to be $413 million to $420 million, compared with prior guidance of $411 million to $418 million. * Adjusted EPS is expected to be $5.25 to $5.35, up from prior guidance of $5.15 to $5.25. * The outlook includes about $25 million of incremental brand-building and other growth investments and approximately $0.36 per share of incremental investments relative to prior guidance. * Cash from operations is expected to approximate $450 million, including the Lee business contribution reported in discontinued operations. Kontoor expects to return more than $900 million of capital during 2026, including anticipated proceeds from the Lee sale, through share repurchases, dividends and voluntary debt payments. The company expects net leverage to fall below 1.5 times by year-end. About Kontoor Brands (NYSE:KTB). Kontoor Brands, Inc is a global apparel company best known for its Wrangler and Lee denim and lifestyle brands. Established as an independent, publicly traded company in May 2019 following a spin-off from VF Corporation, Kontoor leverages a legacy that dates back to 1889 with the founding of Lee and to 1947 with the introduction of the Wrangler brand. The company focuses on designing, manufacturing and distributing premium, casual and workwear apparel, including jeans, pants, shorts, shirts, jackets and complementary accessories. Kontoor Brands operates a diversified sales model that combines wholesale partnerships with leading retailers, distribution through e-commerce channels and select direct-to-consumer formats. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Continue following MarketBeat Before you consider Kontoor Brands, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Kontoor Brands wasn't on the list. While Kontoor Brands currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys. Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries. 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Wrangler to open more stores amid direct-to-consumer push. Owner Kontoor executives called the company's Helly Hansen outdoor brand its "growth engine," but some analysts aren't so sure. Published Aug. 12, 2026 Dive brief: * Thanks in part to $114 million from its Helly Hansen outdoor brand, acquired last year, Kontoor Brands' Q2 revenue rose 19% year over year to $584 million, the apparel maker said Wednesday. * Wrangler global revenue rose 2% to $469 million. The results don't include Lee, whose sale to Authentic Brands Group is expected to close in Q4, or tariff refunds. Gross margin expanded by 970 basis points to 56.2%, and net income declined 12% to $64.8 million. * Both Kontoor brands were flattered by foreign currency exchange rates, according to BNP Paribas Equity Research senior analyst Laurent Vasilescu. In constant currency, Wrangler rose 1% and Helly Hansen fell 1%, per BNP Paribas calculations. Dive insight: Add Kontoor's Wrangler to the apparel brands looking to boost direct-to-consumer sales. Early next year, Wrangler will open two more stores in Texas, based on the success of what CEO Scott Baxter called a "full-price store in the stockyards of Fort Worth." "We are beginning to develop a focused retail fleet in the heartland of Wrangler Country," he told analysts Wednesday morning. More generally at Wrangler, Baxter identified "incredible opportunities" in women's, DTC and non-denim categories, but said, "we will not lose sight of Wrangler's identity." Women's clothing grew 20% in the first half of the year, accelerating in Q2. Also in the period, the denim brand's core bottoms business expanded its market share by more than 100 basis points, he said, citing Circana. Companies like Nike and Levi's have followed a similar path in DTC, with mixed results. Nike pulled back its effort after executives realized the tactic went too far. Companies like Crocs and Levi's continue with their work to boost DTC but have also maintained strong wholesale operations. Regardless of the channel, questions are emerging about just how much Kontoor will grow once the Helly Hansen acquisition, completed in late May 2025, laps its first full year of quarterly results. Wrangler has been a low-single-digit growth brand since before the pandemic, and Helly Hansen's financial filings demonstrate that it is "also a no growth brand," Vasilescu said in a Wednesday client note. That's not how Kontoor sees it. Revenue is projected to increase in the mid-single digit range during the second half of the year for both Helly Hanson and Wrangler, excluding the impact of the 53rd week. For the full year, Kontoor maintained its revenue outlook, expecting year-over-year growth between 12% and 13%. Baxter called Helly Hansen the company's "growth engine," but sales there could suffer from a warmer winter due to El Niño, Vasilescu warned. In addition to its Q2 results, Kontoor reported that it has expanded Chief Financial Officer Joseph Alkire's duties, and he has been named president of the company as well. Alkire, who has been CFO for three years, will maintain global responsibilities for Helly Hansen and will add oversight of the Wrangler brand, according to a press release.

Kontoor Brands Board of Directors elects Tom Waldron as new Director. * Business Wire * 1 hr ago * 0 GREENSBORO, N.C.-(BUSINESS WIRE)-Jul 22, 2026- Kontoor Brands, Inc. (NYSE: KTB) (the "Company" or "Kontoor"), today announced that Tom Waldron has been elected to the Company's Board of Directors effective immediately. Additionally, the Company announced an increase in the size of the Board from six to seven directors. "We're excited to welcome Tom to Kontoor's Board of Directors," said Scott Baxter, President, Chief Executive Officer and Chairman of the Board of Directors. "Tom's deep expertise of the Wrangler(R) brand and Kontoor's broader business will bring valuable perspective to our Board as we continue to strengthen our multi-brand platform and focus on driving long-term growth." Mr. Waldron, 58, previously served as Executive Vice President and Chief Operating Officer of Kontoor, where he led the Wrangler(R) and Lee(R) brands globally and oversaw the Company's supply chain, product development and innovation. Prior to that role, he served as EVP, Co-Chief Operating Officer and Global Brand President of Wrangler(R), following roles of increasing responsibility in brand, merchandising, sales and operations at VF Corporation. Mr. Waldron also serves as a board member at The LYCRA Company. The LYCRA Company innovates and produces fiber and technology solutions for the apparel and personal care industries. Mr. Waldron earned a bachelor's degree in Management from the University of North Carolina at Greensboro's Bryan School of Business. About Kontoor Brands Kontoor Brands, Inc. (NYSE: KTB) is a portfolio of three of the world's most iconic lifestyle, outdoor and workwear brands: Wrangler(R), Lee(R) and Helly Hansen(R). Kontoor is a purpose-led organization focused on leveraging its global platform, strategic sourcing model and best-in-class supply chain to drive brand growth and deliver long-term value for its stakeholders. For more information about Kontoor Brands, please visit www.KontoorBrands.com. Michael Karapetian, (336) 332-4263 Vice President, Global Brand & Operations Finance and Corporate Investor Relations Julia Burge, (336) 332-5122 Senior Director, Corporate Communications KEYWORD: NORTH CAROLINA UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: FASHION LIFESTYLE RETAIL SPORTS CONSUMER OUTDOORS PUB: 07/22/2026 04:30 PM/DISC: 07/22/2026 04:30 PM 00:00/01:39