EarningsQ2 2026 Earnings Report
DE:3KO Q2 2026 EPS Results
Actual EPS€0.95
Consensus EPS€0.94
Beat/MissBeat by +<€0.01
One Year Ago EPS€1.08
DE:3KO Q2 2026 Revenue Results
Actual Revenue€519.67M
Expected Revenue€523.80M
Beat/MissMissed by -€4.13M
YoY Revenue Growth-11.56%
Earnings Announcement Details
QuarterQ2 2026
Date08/12/2026
TimeBefore Open
Conference CallWednesday, August 12, 2026
DE:3KO Upcoming Earnings
Kontoor Brands's next earnings date is estimated for March 2, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
DE:3KO Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Q2 2026
Earnings Call Date:Aug 12, 2026|
% Change Since:
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Earnings Call Sentiment|Positive
The call presents a constructive and optimistic picture: strong top-line and margin performance in the first half, raised full-year margin and EPS guidance, Helly Hansen performing ahead of acquisition plan and showing early profitability improvements, Wrangler showing market-share gains and DTC momentum, and Project Genius delivering material savings. The primary negatives are transitional and execution risks tied to the Lee divestiture reclassification (~$0.55 in stranded costs), elevated SG&A as the company invests behind growth, trade/tariff uncertainty, and short-term wholesale/retail inventory caution. Management provided clear mitigation plans (cost actions, ASR, debt paydown) and reiterated confidence in achieving targets within 12–18 months.Company Guidance
Strong First Half Revenue and EPS
Revenue of $1.2 billion in the first half, at the high end of prior outlook, representing a 31% increase versus prior year; adjusted EPS of $2.12 in the first half, up 36% versus prior year.
Material Gross Margin Expansion
Adjusted gross margin expanded to 52.2% in the first half (up ~590 basis points year-over-year); second quarter adjusted gross margin rose to 53.8% (up ~710 basis points year-over-year). Full-year gross margin guidance raised to 49.8%–50.0%, +330–350 bps versus prior year.
Helly Hansen Acquisition Outperforming Plan
Helly Hansen pro forma reported revenue grew low double-digits in H1 (exceeding expectations); Q2 global pro forma revenue of $114 million, +6% year-over-year and +12% reported pro forma YTD; including China JV, Helly pro forma revenue grew in the mid-teens; Helly generated ~$100 million cash from operations last year and showed positive operating profit in seasonally small Q2.
Operating Margin Improvement and Project Genius
Controlling operations: consolidated operating margin expanded ~600 basis points to ~7% in H1 driven by gross margin expansion and expense synergies; Project Genius on track to exceed $100 million in gross savings and cited as a key driver of margin expansion.
Wrangler Momentum — Market Share and Category Growth
Wrangler first half global revenue up ~3% reported; Q2 global +1% with DTC growth +12%; first half female revenue +20% and Western business grew low double-digits; drove 100+ basis points of share gains in core bottoms (Circana) and marked 17th consecutive quarter of POS share gains in men’s and women’s bottoms.
DTC Strength and Retail Rollout Plans
DTC strength: Wrangler DTC up 9% in the U.S. (Q2) and international DTC +27% in Wrangler International; plan to expand a focused Wrangler full-price retail fleet (two additional Texas locations secured, openings early 2027) and invest in digital capabilities (AI, site, loyalty).
Capital Allocation and Share Repurchases
Year-to-date return of >$130 million to shareholders including $75 million of repurchases; Q2 repurchases $50 million; $700 million remaining under current buyback authorization; plan to use majority of Lee divestiture proceeds to fund a new $400 million ASR and the remainder for voluntary debt paydown; expect >$900 million of capital returned in full-year 2026 (repurchases, dividends, debt repayment) including Lee proceeds.
Balance Sheet and Cash Generation
Net debt of $1.1 billion with $58 million cash and an undrawn $500 million revolver; continued strong cash generation expected with total cash from operations ~ $450 million for the full year and plans for $225 million voluntary term loan payments.
Raised Full-Year Profitability and EPS Outlook
Updated full-year guidance: adjusted operating income $413M–$420M (+15%–17% YoY) and adjusted EPS $5.25–$5.35 (up 27%–29% YoY), while funding ~$25M of incremental brand-building investments into 2026.
DE:3KO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed