Kontoor Brands Boosts 2026 Outlook on Wrangler, Helly Hansen Strength

Kontoor Brands raised its full-year outlook aft a beardown Q2 2026.

On Wednesday, the Wrangler and Helly Hansen proprietor raised its full-year outlook, forecasting gross successful the scope of $2.66 cardinal to $2.71 billion, representing maturation of astir 12 to 13 percent from the anterior year.

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Adjusted EPS is present expected to beryllium successful the scope of $5.25 to $5.35, an summation from anterior outlook scope $5.15 to $5.25. This includes the interaction of astir $0.55 of unmitigated overhead and different expenses that were antecedently allocated to the Lee business. In May, Authentic Brands Group signed a definitive statement with Kontoor Brands to get Lee successful a woody valued astatine up to $1 billion.

Kontoor said it expects the divestiture of Lee to beryllium immaterial to net per stock implicit a 12-to-18-month period.

Upon closing of the Lee concern divestiture, Kontoor said it intends to deploy the expected proceeds into a $400 cardinal Accelerated Share Repurchase agreement, with the remaining proceeds allocated towards voluntary indebtedness payments. The institution expects to instrumentality much than $900 cardinal of superior successful 2026 done stock repurchases, dividends and voluntary indebtedness payments, including the proceeds from the Lee divestiture.

Q2 2026 gross was $584 million, a 19 percent summation compared to anterior year, including the publication from the acquisition of Helly Hansen completed successful the 2nd 4th of 2025.

Scott Baxter, Kontoor Brands CEO and president of the committee of directors, said Q2 results were driven by maturation from Wrangler, a stronger-than-expected publication from Helly Hansen and robust gross borderline expansion.

Wrangler marque planetary gross was $469 million, up 2 percent compared to anterior year. Baxter noted that Wrangler's "diversified growth" was led by beardown show successful women's, direct-to-consumer and international, coupled with exceptional profitability and currency generation.

The practice denim brand's U.S. gross accrued 1 percent, driven by a 9 percent summation successful direct-to-consumer. U.S. wholesale was level compared to anterior year. Wrangler planetary gross accrued 10 percent compared to anterior year, driven by a 31 percent summation successful direct-to-consumer and a 7 percent summation successful wholesale.

Helly Hansen delivered a better-than-expected 4th and for the archetypal fractional of 2026. Helly Hansen planetary gross was $114 million. Sport and Workwear gross was $70 cardinal and $37 million, respectively. Musto marque gross was $7 million.