Kontoor revenue rockets 19% to $584 million

• Kontoor Brands reported Q2 2026 revenue of $584 million, up 19% year-over-year, supported by $114 million from Helly Hansen and 2% Wrangler growth.
• Adjusted EPS increased 13% to $1.06, while adjusted gross margin expanded 710 basis points to 53.8%.
• Kontoor raised its 2026 adjusted EPS outlook to $5.25–$5.35 and plans additional capital returns following its Lee divestiture.

Kontoor Brands (NYSE:KTB) reported second-quarter 2026 revenue of $584 million, up 19% year-over-year, driven by $114 million in Helly Hansen revenue and 2% growth from Wrangler.

The company’s revenue increase exceeded expectations, while adjusted gross margin improved to 53.8% from the prior year due to higher profitability across continuing operations.

Kontoor reported operating income from continuing operations of $91 million, adjusted operating income of $94 million, diluted EPS of $1.03, and adjusted EPS of $1.06 for the quarter.

Following the announcement, the Kontoor Brands share price was unchanged at $78.08.

Kontoor said full-year 2026 adjusted EPS is now expected to be between $5.25 and $5.35, compared with its previous outlook of $5.15 to $5.25, while adjusted gross margin is expected at 49.8% to 50.0%.

Meanwhile, the company repurchased $50 million of common stock during Q2 at an average price of $74 per share and expects the Lee business divestiture to close in the fourth quarter.

Kontoor also plans to use proceeds from the Lee divestiture for a $400 million accelerated share repurchase agreement and voluntary debt payments, with the company expecting to return more than $900 million of capital in 2026 through buybacks, dividends and debt reduction.