Kontoor Brands (KTB) Q1 2025

Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025

Earnings

Kontoor Brands delivered a steady if measured first quarter, posting revenue of $622.90 million, down 1% year-over-year but flat on a constant currency basis, while adjusted EPS rose 3% to $1.20, underscoring disciplined execution in a difficult macr… Read more Kontoor Brands delivered a steady if measured first quarter, posting revenue of $622.90 million, down 1% year-over-year but flat on a constant currency basis, while adjusted EPS rose 3% to $1.20, underscoring disciplined execution in a difficult macro environment. The real story was margin expansion: adjusted gross margin climbed 200 basis points to 47.7%, fueled by lower product costs, supply chain efficiencies, and favorable direct-to-consumer mix, helping adjusted operating income grow 4% to $96.13 million even as the company absorbed $8.00 million in acquisition-related stock compensation tied to the pending Helly Hansen deal. Brand performance diverged sharply, with Wrangler growing global revenue 3% to $420.25 million while Lee slipped 9% to $199.90 million as expected. Looking ahead, Kontoor's updated 2025 outlook targets revenue of $3.06 billion to $3.09 billion and adjusted EPS of $5.40 to $5.50, with Helly Hansen, on track to close by end of May, seen contributing roughly $425.00 million in revenue, though a $50.00 million unmitigated tariff headwind remains a watchpoint management expects to begin addressing in Q3.