Kontoor revenue +18.6% to $584.3M; net income -12.3% on higher taxes as Lee sale nears

Filed August 12, 2026 · Period ending July 4, 2026 · Compared to 10-Q Aug 7, 2025 · ~2 min read

Key Changes

• high

  Net income fell 12.3% to $64.8M despite operating income rising 59.0% to $90.5M, reflecting higher below-the-line deductions (taxes/interest/other) that offset operational gains. The divergence signals earnings quality concerns as bottom-line growth did not track operating performance.

  MD&A: Operating Results verify on EDGAR →
• high

  Company signed definitive agreement to sell Lee® business for $750M cash plus up to $250M earnout, with proceeds earmarked for share buybacks and debt repayment. Transaction subject to regulatory approvals and February 2027 outside date; Lee now classified as discontinued operations.

  Notes: Discontinued Operations verify on EDGAR →
• high

  Recognized $53.7M receivable for IEEPA tariff refunds following Supreme Court invalidation, reducing Q1 cost of goods sold by $49M (including $29M from 2025 tariffs). Company began receiving refunds in Q3 and expects full collection by year-end.

  MD&A: Tariff Refund verify on EDGAR →