Kontoor Brands raises 2026 earnings outlook on strong results

Greensboro, North Carolina - Fibers company Kontoor Brands (NYSE: KTB) announced an uplift to its earnings expectations for 2026 due to robust performance. The company's second quarter revenue surged 19 percent year-over-year to $584 million, with adjusted earnings per share reaching $1.06, a 13 percent increase over the previous year.

Wrangler brand sales grew by 2 percent to $469 million, while Helly Hansen contributed $114 million. Adjusted gross margin expanded by 710 basis points to 53.8 percent, fueled by Project Jeanius, the Helly Hansen acquisition, and a favorable mix of channels and products. Operating income rose 19 percent to $94 million. Kontoor repurchased $50 million of common stock at an average price of $74 per share during the quarter, and has now repurchased a total of $75 million at $75 per share year-to-date.

The company has increased its 2026 earnings per share outlook to a range of $5.25 to $5.35, reflecting 27 to 29 percent growth compared to the prior year. Adjusted gross margin expectations have also risen to 49.8 to 50.0 percent, a 330 to 350 basis point increase from the prior year. The company anticipates full-year revenue to fall within $2.66 to $2.71 billion.

The sale of the Lee business is slated to conclude in the fourth quarter, with $400 million from the expected proceeds to be reinvested in an accelerated share repurchase, while the remainder will be used for voluntary debt payments. Kontoor expects to return over $900 million in capital to shareholders in 2026 through share repurchases, dividends, and debt payments, including funds from the Lee divestiture.