Kontoor Brands Raises 2026 Earnings Outlook After Q3 Profit Exceeds Estimates

Kontoor Brands Inc. (NYSE:KTB) reported third-quarter adjusted earnings above analysts’ expectations and raised its full-year profit guidance, while announcing plans to repurchase $450 million of common stock in the fourth quarter.

The apparel company’s shares rose 3.3% following the announcement.

Adjusted earnings reached $1.50 per share, exceeding the consensus estimate of $1.36. Revenue increased 3% year over year to $685 million from $666 million, although it fell below analysts’ expectations of $692.97 million.

Wrangler and Helly Hansen Record Revenue Growth

Kontoor reported revenue growth of 3% for both its Wrangler and Helly Hansen brands.

Wrangler generated $485 million in quarterly revenue, while Helly Hansen contributed $191 million.

Adjusted gross margin expanded 230 basis points to 48.1%, supported by benefits from the company’s Project Jeanius initiative and changes in business mix.

“Our third quarter results were driven by growth in both Wrangler and Helly Hansen, strong earnings and gross margin expansion,” said Scott Baxter, Chief Executive Officer and Chairman.

Full-Year Earnings Guidance Increased

Kontoor raised its 2026 adjusted earnings per share forecast to $5.40, compared with its previous guidance range of $5.25 to $5.35.

The updated projection also exceeds analysts’ consensus estimate of $5.29.

The company expects full-year revenue of approximately $2.68 billion, representing growth of around 12% year over year, although slightly below the consensus forecast of $2.7 billion.

Adjusted gross margin is projected to reach 50.0% to 50.2%, above the company’s previous outlook.

Kontoor also introduced preliminary guidance for 2027, forecasting adjusted earnings of at least $6.60 per share, representing growth of more than 20% compared with its revised 2026 projection.

Share Repurchases Planned Following Lee Divestiture

Kontoor expects to repurchase $450 million of common stock during the fourth quarter, including $400 million through an accelerated share repurchase programme.

The announcement follows the completion of the Lee brand divestiture, which generated $698 million in net proceeds.

The company enters the final quarter of 2026 with higher adjusted earnings expectations, supported by revenue growth across its remaining brands and an expanded share repurchase programme.

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