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Get filing alertsKontoor Brands beats Q2, raises full-year EPS to $5.25-$5.35, plans $400M buyback
Filed August 12, 2026 · Period ending August 12, 2026 · ~1 min read
Key Changes
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high
Q2 revenue rose 19% to $584M on Helly Hansen acquisition ($114M) and 2% Wrangler organic growth; adjusted EPS of $1.06 up 13% year-over-year with gross margin expanding 710 basis points to 53.8%.
Exhibit 99.1 view on EDGAR → -
high
Raised full-year adjusted EPS guidance to $5.25-$5.35 (from $5.15-$5.25), representing 27-29% growth; gross margin outlook increased to 49.8-50.0%, up 330-350 basis points versus prior year.
Exhibit 99.1 view on EDGAR → -
high
Plans $400M accelerated share repurchase upon closing Lee divestiture (expected Q4 2026), with remaining proceeds for voluntary debt payments; expects to return over $900M capital in 2026 total.
Exhibit 99.1 view on EDGAR → -
medium
Exhibit 99.1 view on EDGAR →
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medium
Lee divestiture remains on track for Q4 2026 close; company expects transaction to be immaterial to EPS over 12-18 months through capital deployment and overhead mitigation via restructuring.
Exhibit 99.1 view on EDGAR →
Summary
Kontoor Brands reported strong second-quarter results and raised its full-year outlook, driven by the Helly Hansen acquisition and operational improvements. Revenue grew 19% to $584 million, with Helly Hansen contributing $114 million and Wrangler posting 2% organic growth.
Adjusted EPS of $1.06 beat expectations and rose 13% year-over-year, supported by 710 basis points of gross margin expansion from Project Jeanius benefits and favorable mix. Management raised full-year adjusted EPS guidance by $0.10 at the midpoint to $5.25-$5.35, reflecting 27-29% growth, and increased gross margin guidance to 49.8-50.0%, up 330-350 basis points.
The company plans to deploy $400 million of proceeds from the pending Lee divestiture (expected to close in Q4 2026) into an accelerated share repurchase, with remaining proceeds allocated to voluntary debt reduction. Total capital returns in 2026 are expected to exceed $900 million through buybacks, dividends, and debt payments. Additionally, the company recognized a $54 million receivable for IEEPA tariff refunds following a Supreme Court ruling, with $23 million received to date and the balance expected by year-end. The combination of strong operating performance, margin expansion, and substantial capital return positions the company favorably as it transitions to a Wrangler-and-Helly-Hansen portfolio.
Section-by-Section Diff
Event · Exhibit 99.1
Kontoor Brands reported Q2 2026 results with 19% revenue growth, raised full-year EPS guidance to $5.25-$5.35, and announced plans for a $400M accelerated share repurchase upon closing the Lee divestiture.
Added in current filing · view on EDGAR →
Full year 2026 adjusted earnings per share from continuing operations is now expected to be in the range of $5.25 to $5.35, reflecting 27 to 29 percent growth compared to prior year (prior outlook range $5.15 to $5.25) ... Full year 2026 adjusted gross margin from continuing operations has strengthened and is now expected to be in the range of 49.8 to 50.0 percent, reflecting an increase of 330 to 350 basis points compared to prior year
The company raised its full-year 2026 adjusted EPS guidance from a range of $5.15-$5.25 to $5.25-$5.35, representing 27-29% growth versus prior year. Adjusted gross margin guidance was also raised to 49.8-50.0%, up 330-350 basis points year-over-year, compared to the prior outlook of 48.3-48.5%. The updated outlook includes approximately $25 million of incremental brand-building and growth-enabling investments and approximately $0.36 per share of incremental investments versus the prior outlook.
Added in current filing · view on EDGAR →
Upon closing of the Lee business divestiture, the Company intends to deploy the expected proceeds into a $400 million Accelerated Share Repurchase agreement, with the remaining proceeds allocated towards voluntary debt payments ... Expect to return more than $900 million of capital in 2026 through share repurchases, dividends and voluntary debt payments, including the proceeds from the Lee divestiture
Upon closing the Lee business divestiture (expected in Q4 2026), Kontoor Brands intends to deploy $400 million of the proceeds into an accelerated share repurchase agreement, with remaining proceeds allocated to voluntary debt payments. The company expects to return more than $900 million of capital in 2026 through share repurchases, dividends, and voluntary debt payments. During Q2 2026, the company repurchased $50 million of common stock at $74 per share.
Added in current filing · view on EDGAR →
The Lee business divestiture is on track to close in the fourth quarter ... The Company continues to expect the divestiture of Lee to be immaterial to earnings per share over a 12-to-18-month period. The earnings contribution of the Lee business will be offset through capital deployment of expected proceeds from the divestiture, and mitigation of overhead and other expenses that were previously allocated to the Lee business, through restructuring and other cost actions.
The divestiture of the Lee business remains on track to close in the fourth quarter of 2026. The company expects the divestiture to be immaterial to earnings per share over a 12-to-18-month period, as the earnings contribution of Lee will be offset by capital deployment of proceeds and mitigation of overhead and other expenses previously allocated to Lee through restructuring and other cost actions.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 13, 2026 · How we verify