Q1 26 EPS
$1.55
BEAT +35.92%
Est. $1.14
Q1 26 Revenue
$807.6M
BEAT +2.91%
Est. $784.8M
vs S&P Since Q1 26
+8.8%
BEATING MARKET
KTB +12.0% vs S&P +3.2%
Market Reaction
Did KTB Beat Earnings? Q1 2026 Results
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 a… Read more 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.
Key Takeaways
- • 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
KTB Forward Guidance & Outlook
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
Q1 2026 vs Q1 2025, source: SEC Filings
KTB Revenue by Segment
With YoY comparisons, source: SEC Filings
KTB Revenue by Geography
With YoY comparisons, source: SEC Filings
“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.”
— Scott Baxter, Q1 2026 Earnings Press Release
KTB Earnings Trends
KTB vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KTB EPS Trend
Earnings per share: estimate vs actual
KTB Revenue Trend
Quarterly revenue: estimate vs actual
KTB Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $1.14 | $1.55 | +35.92% | $807.6M | +2.91% |
| Q4 25 BEAT FY | $1.64 | $1.73 | +5.23% | $1.02B | +4.29% |
| FY Full Year | $5.50 | $5.59 | +1.71% | $3.15B | +1.36% |
| Q3 25 BEAT | $1.40 | $1.44 | +3.17% | $853.2M | -2.14% |
| Q2 25 BEAT | $0.83 | $1.21 | +46.14% | $658.3M | +3.88% |
| Q1 25 BEAT | $1.16 | $1.20 | +3.13% | $622.9M | -0.55% |