Kontoor Brands (NYSE:KTB) posted a sharp increase in fourth-quarter revenue on Tuesday, clearing the $1 billion threshold as the company reaps the benefits of its 2025 acquisition of Helly Hansen and continued momentum in its core denim business.
The Greensboro, North Carolina-based parent of Wrangler and Lee reported revenue of $1.02 billion for the quarter ended January 3, 2026, a 46% increase over the same period last year.
The results reflect a transformational year for the firm, which has successfully integrated the Helly Hansen outdoor brand into its portfolio while navigating a volatile global supply chain.
Profitability metrics also saw significant expansion.
The company reported an adjusted gross margin of 46.8%, up 210 basis points from the prior year.
Adjusted operating income climbed 48% to $150 million, a figure that includes $8 million in incremental "demand creation" investments—capital the company deployed late in the year to fuel brand heat and market share gains.
The company’s focus on balance sheet health was a central theme of the report.
Kontoor made a $200 million voluntary term loan payment during the quarter and reduced its inventory levels by 26% compared to the third quarter.
This aggressive deleveraging and inventory management provided the company with the flexibility to return capital to shareholders, including $25 million in share repurchases and a quarterly dividend of $0.53 per share.
Meanwhile, reported earnings per share (EPS) stood at $1.31, while adjusted EPS reached $1.73—a 26% year-over-year increase.
The adjusted figure includes a $0.10 per share impact from the company's decision to reinvest in marketing and brand awareness during the holiday season.
As Kontoor enters 2026, the company is positioning itself as a diversified apparel powerhouse.
While Wrangler remains the primary revenue driver, the addition of Helly Hansen has provided a high-margin growth engine in the outdoor and workwear categories.