Kontoor Brands Q4 revenue beats estimates, helped by Helly Hansen acquisition

Kontoor Brands

03/03/2026 12:02

Overview

Lifestyle apparel firm's Q4 revenue grew 46%, beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company repurchased $25 mln of shares and made $200 mln term loan payment

Outlook

Kontoor Brands expects 2026 revenue between $3.40 bln and $3.45 bln

Adjusted EPS for 2026 expected between $6.40 and $6.50

Company anticipates cash from operations of approximately $425 mln in 2026

Result Drivers

HELLY HANSEN ACQUISITION - Revenue increased 46% with a 36 percentage point benefit from Helly Hansen acquisition

PROJECT JEANIUS - Adjusted gross margin improved due to benefits from Project Jeanius and product mix

DEMAND CREATION INVESTMENTS - Incremental demand creation investments contributed to adjusted operating income growth

Company press release: ID:nBw20yySna

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$1.02 bln
$979.05 mln (8 Analysts)
Q4 Adjusted EPS
Beat
$1.73
$1.65 (8 Analysts)
Q4 EPS
$1.31
Q4 Gross Margin
46.20%
Q4 Operating Income
$121 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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 $84.00, about 29.6% above its March 2 closing price of $64.82

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

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.)