Kontoor Brands Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.60%.
Did KTB Beat Earnings? Q4 2025 Results
Kontoor Brands closed out fiscal 2025 with a strong beat on both the top and bottom lines, as the Helly Hansen acquisition reshaped the company's financial profile in a single quarter. For Q4 2025, the Winston-Salem apparel maker posted revenue of $1.02 billion — up 45.6% year-over-year and ahead of the $975.76 million consensus — while adjusted EPS of $1.73 cleared the $1.65 estimate by 4.85%, rising 26% from the prior-year period. The Helly Hansen deal was the dominant driver, contributing $254 million in quarterly revenue and 36 percentage points of the year-over-year growth, while Wrangler delivered its own momentum with global revenue climbing 12%. Adjusted gross margin expanded 210 basis points to 46.8%, with Helly Hansen accounting for the bulk of that improvement. The company's <a href="https://247wallst.com/investing/2026/03/03/kontoor-crosses-1b-revenue-mark-as-profitability-slips/">milestone billion-dollar quarter</a> came alongside forward guidance calling for fiscal 2026 revenue of $3.40 to $3.45 billion and adjusted EPS of $6.40 to $6.50, though tariff headwinds are expected to weigh more heavily in the first half of the year.
- Helly Hansen acquisition contributing 36 percentage points of revenue growth and $0.44 EPS contribution
- Wrangler U.S. direct-to-consumer growth of 16% and wholesale growth of 11%
- Project Jeanius benefits driving gross margin expansion and SG&A discipline
- 53rd fiscal week contributing approximately 8 percentage points to Wrangler growth and 6 percentage points to Lee growth
- Record cash generation of $455.8 million from operations, including $100 million from Helly Hansen
- Adjusted gross margin expansion of 210 basis points to 46.8% driven by Helly Hansen mix benefit
“We had a strong finish to the year driven by better-than-expected revenue, earnings and cash generation. 2025 was a transformational year for Kontoor, highlighted by the acquisition of Helly Hansen, strong growth in Wrangler and disciplined execution.”
Kontoor Brands CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, Kontoor expects revenue of $3.40 to $3.45 billion (approximately 9% growth), adjusted gross margin of 47.2% to 47.4% (60-80 bps improvement), adjusted operating income of $506 to $512 million (8-9% growth), and adjusted EPS of $6.40 to $6.50 (15-16% growth). Cash from operations is expected to be approximately $425 million. Capital expenditures are expected to be approximately $45 million. The company expects to make $225 million in voluntary term loan payments and achieve a net leverage ratio below 1.5x by year-end. The outlook incorporates tariff impacts including a 15% reciprocal tariff rate on applicable inventory receipts effective February 24, 2026, and at least 20% on pre-existing inventory, with Mexico imports exempt under USMCA. Tariff headwinds are expected to be larger in the first half. For H1 2026, revenue is expected at $1.56-$1.57 billion, adjusted operating income of $195-$198 million, and adjusted EPS of $2.25-$2.30. Interest expense is expected to be approximately $55 million, effective tax rate approximately 20%, and average shares outstanding approximately 56 million. No share repurchases are contemplated in the outlook.
KTB YoY Financials
KTB Revenue by Segment
KTB Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.