Kontoor Brands (KTB)
NYSE:KTB
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Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.1Last Year’s EPS
1.21Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Q1 2026
Earnings Call Date:May 07, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call presents strong operational and financial momentum: robust margin expansion, double-digit adjusted EPS growth, clear growth trajectories for Wrangler and Helly Hansen, a defensible capital allocation plan (large buyback authorization) and disciplined deleveraging. Near-term headwinds include elevated SG&A from Helly integration and growth investments, approximately $40 million of unmitigated costs shifted to continuing operations due to the Lee divestiture, tariff/input cost uncertainty and reliance on the timing of the Lee sale to fully realize capital deployment plans. On balance, the positive developments (margin expansion, EPS acceleration, brand momentum, buyback authorization and debt paydown progress) outweigh the near-term challenges.Company Guidance
Strategic Portfolio Move — Lee Divestiture
Announced initiation of a competitive sales process to divest the Lee brand to sharpen focus on Wrangler and Helly Hansen; Lee will be reported as discontinued operations and management expects proceeds to increase capital allocation optionality (majority earmarked for share repurchases).
Wrangler Revenue and Market Share Gains
Wrangler global revenue increased 2% in Q1 with DTC up 9% and wholesale up 2%; U.S. revenue +1% (DTC +6%); Wrangler gained over 100 basis points of market share in men's and women's bottoms and achieved its 16th consecutive quarter of market share gains (Circana).
Helly Hansen Strong Start and Scale Opportunity
Helly Hansen pro forma global revenue was $176 million, up 16% reported (high-single-digit constant currency); including China JV, pro forma growth exceeded 20%; China JV revenue roughly doubled (~100% increase) with improved profitability; management expects Helly to reach double-digit growth in the U.S. and mid-teens operating margin over time.
Major Gross Margin Expansion
Adjusted gross margin expanded 470 basis points to 50.6% in Q1, driven by Project Genius, Helly Hansen contribution (~200 bps of the margin expansion) and favorable channel/product mix.
Adjusted EPS and Profitability Momentum
Adjusted EPS was $1.06 in Q1, up 67% year-over-year; Helly Hansen contributed approximately $0.26 per share. Including discontinued operations, adjusted EPS was $1.55.
Stronger Full-Year and H1 Outlook
Full-year revenue including discontinued operations raised to $3.41B–$3.46B (prior $3.40B–$3.45B); continuing operations revenue now expected $2.66B–$2.71B. First-half continuing ops revenue guidance of $1.19B–$1.20B (implying ~3% Wrangler growth and high-single-digit Helly pro forma growth).
Capital Allocation & Share Repurchase Authorization
Board approved a new $750 million share repurchase authorization; company repurchased $25 million in the quarter and plans to use a majority of expected Lee proceeds to accelerate buybacks while targeting net leverage ≤1.5x by year-end 2026.
Balance Sheet Progress and Cash Generation
Inventory at quarter-end $464 million; net debt $1.1 billion with $56 million cash on hand; voluntary term loan repayments of $250 million already made since Helly closing; free cash flow expected to approximate $450 million for 2026 (including Lee).
Tariff Recovery and One-Time Benefit
Recognized a probable net receivable of $54 million for IEPA tariffs after court rulings and reduced GAAP cost of goods sold by ~$49 million in Q1 (including $29 million related to 2025), with an updated tariff assumption of 15% reciprocal rate for applicable receipts for remainder of 2026 (10% applied from Feb 24 onward).
KTB 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
KTB Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $74.94 | $78.07 | +4.18% |
Mar 03, 2026 | $64.35 | $77.61 | +20.61% |
Nov 03, 2025 | $79.77 | $72.41 | -9.23% |
Aug 07, 2025 | $55.55 | $62.67 | +12.82% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Kontoor Brands (KTB) report earnings?
Kontoor Brands (KTB) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Kontoor Brands (KTB) earnings time?
Kontoor Brands (KTB) earnings time is at Jul 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is KTB EPS forecast?
KTB EPS forecast for the fiscal quarter 2026 (Q2) is 1.1.
