Kontoor Brands Q2 profit tops estimates, lifts 2026 adjusted EPS outlook

Kontoor Brands

12/08/2026 12:01

Overview
U.S. apparel maker's fiscal Q2 revenue rose 19% yr/yr but missed analyst expectations
Adjusted EPS for fiscal Q2 increased 13% yr/yr and beat analyst expectations
Company repurchased $50 mln in stock, plans $400 mln accelerated share repurchase post-Lee divestiture

Outlook
Kontoor Brands raises 2026 adjusted EPS outlook to $5.25-$5.35 from $5.15-$5.25
Company maintains 2026 revenue outlook at $2.66-$2.71 bln, up 12-13% vs prior year
Adjusted gross margin for 2026 now seen at 49.8-50.0%, up from 48.3-48.5% prior outlook

Result Drivers
HELLY HANSEN ACQUISITION - Helly Hansen contributed $114 mln in Q2 revenue, exceeding expectations and driving overall growth
WRANGLER SEGMENT - Wrangler delivered diversified growth led by female, direct-to-consumer and international, with exceptional profitability and cash generation
GROSS MARGIN EXPANSION - Adjusted gross margin rose 710 basis points, attributed to Project Jeanius, Helly Hansen acquisition, and favorable channel mix, product mix and pricing

Company press release: ID:nBw7z5nP6a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$584.29 mln
$605.72 mln (9 Analysts)
Q2 Adjusted EPS
Beat
$1.06
$1.04 (9 Analysts)
Q2 Gross Margin
 
56.20%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for Kontoor Brands, Inc. is $96.00, about 28.1% above its August 11 closing price of $74.96
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)