Kontoor Brands (KTB) Q1 2026 Earnings
How Did KTB Stock React to Q1 2026 Earnings?
S&P 500 over the same 30 days: +0.75%.
Did KTB Beat Earnings? Q1 2026 Results
Yes. Kontoor Brands reported Q1 2026 earnings of $1.55 a share on May 7, 2026, beating the $1.14 consensus estimate by 35.9%. Revenue was $807.6M against a $784.8M estimate.
Kontoor Brands delivered a standout first quarter for fiscal 2026, posting adjusted EPS of $1.55 against a consensus estimate of $1.14, a beat of 35.92%, while revenue of $807.61 million cleared Wall Street's $784.76 million forecast by 2.91%, even as total sales slipped 1.5% year over year. The headline driver was a portfolio in transition: the company announced the planned divestiture of its Lee brand and formally reclassified it as a discontinued operation, allowing the Helly Hansen acquisition, completed in Q2 2025, to take center stage, contributing $176.01 million in revenue and $0.26 to adjusted EPS. Adjusted gross margin from continuing operations expanded 470 basis points to 50.6%, reflecting Helly Hansen's favorable mix and Project Jeanius cost savings, while adjusted operating income surged 60% to $86.80 million. Investors had been watching closely whether Helly Hansen could offset seasonal and tariff headwinds, and the quarter answered that question decisively. Looking ahead, Kontoor raised its full-year adjusted EPS outlook to $6.60 to $6.70 and guided for continuing-operations revenue of $2.66 billion to $2.71 billion.
- Wrangler broad-based growth and market share gains
- Helly Hansen better-than-expected revenue and profitability contribution
- Wrangler international revenue increased 20% with DTC up 38%
- Project Jeanius cost optimization benefits improving gross margin
- Adjusted gross margin expanded 470 basis points to 50.6%
- Channel mix and Helly Hansen mix benefit
- U.S. Supreme Court ruling invalidating IEEPA tariffs resulting in $54 million receivable recognition
“Our strong first quarter results reflect the power of our operating model combined with strong execution. Wrangler drove another quarter of broad-based growth and market share gains, and Helly Hansen delivered better-than-expected revenue and profitability. Our decision to divest Lee enables sharper focus on the opportunities with greatest potential to maximize shareholder returns as we align the Kontoor brand portfolio to a higher growth profile.”
Kontoor Brands CEO, on the earnings call
What Was Kontoor Brands's Outlook in Q1 2026?
Full year 2026 revenue including discontinued operations is expected to be $3.41 to $3.46 billion (raised from $3.40 to $3.45 billion prior). Lee revenue of approximately $750 million is now in discontinued operations. Revenue from continuing operations is expected to be $2.66 to $2.71 billion. Adjusted EPS including discontinued operations is expected to be $6.60 to $6.70 (raised from $6.40 to $6.50 prior). Adjusted EPS from continuing operations is expected to be $5.15 to $5.25. Adjusted gross margin from continuing operations expected to increase 180 to 200 basis points. Adjusted operating income from continuing operations expected to be $411 to $418 million. Capital expenditures expected at approximately $40 million. Effective tax rate approximately 20% on adjusted earnings. Interest expense approximately $55 million. Cash from operations approximately $450 million including Lee contribution. The outlook assumes a 15% reciprocal tariff rate on applicable inventory for the remainder of 2026, with Mexico exempt under USMCA. The company expects to achieve net leverage below 1.5x on a continuing operations basis by year-end.
KTB YoY Financials
| Metric | Q1 2026 | Q1 2025 | Year over year |
|---|---|---|---|
| Revenue | $613.3M | $622.9M | −1.5% |
| Gross Profit | $329.4M | $295.6M | +11.4% |
| Operating Income | $90.1M | $73.3M | +22.9% |
| Net Income | $92.4M | $42.9M | +115.6% |
KTB Revenue by Segment
KTB Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.