Kontoor Brands (NYSE:KTB – Get Free Report) issued its earnings results on Wednesday. The company reported $1.06 earnings per share for the quarter, topping analysts’ consensus estimates of $1.05 by $0.01, Briefing.com reports. The firm had revenue of $584.29 million during the quarter, compared to analyst estimates of $586.95 million. Kontoor Brands had a net margin of 8.21% and a return on equity of 60.94%. Kontoor Brands’s revenue for the quarter was down 11.2% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.33 earnings per share. Kontoor Brands updated its FY 2026 guidance to 5.250-5.350 EPS.
Here are the key takeaways from Kontoor Brands’ conference call:
- Second-quarter performance exceeded expectations: revenue rose 31% in the first half to $1.2 billion, adjusted gross margin expanded 590 basis points to 52.2%, and adjusted EPS increased 36% to $2.12.
- Helly Hansen is progressing ahead of plan, with pro forma revenue up 12% in the first half and operating margin expanding to approximately 7%; the brand also generated positive operating profit in its seasonally smallest quarter for the first time in the company’s recent history.
- Kontoor raised its 2026 adjusted gross margin outlook to 49.8%-50.0% and EPS outlook to $5.25-$5.35, while expecting more than $900 million in total capital returns, including a planned $400 million accelerated share repurchase after the Lee divestiture closes.
- Wrangler continued to gain market share, with 17 consecutive quarters of share gains, 20% first-half growth in female, strong Western performance, and 12% second-quarter DTC growth; management expects mid-single-digit growth in the second half.
- Retail partners remain cautious, with Wrangler retail inventories down high-single to low-double digits in some areas, while tariff assumptions remain conservative and the company still must eliminate roughly $40 million of stranded Lee-related costs over 12 to 18 months.
Kontoor Brands Trading Up 3.2%
KTB opened at $84.17 on Friday. The stock has a 50-day moving average of $81.78 and a 200 day moving average of $73.58. The company has a current ratio of 1.87, a quick ratio of 1.10 and a debt-to-equity ratio of 1.83. Kontoor Brands has a 12 month low of $56.19 and a 12 month high of $88.96. The firm has a market cap of $4.65 billion, a P/E ratio of 17.57 and a beta of 0.88.
Kontoor Brands Dividend Announcement
Wall Street Analyst Weigh In
KTB has been the topic of several research analyst reports. Weiss Ratings cut shares of Kontoor Brands from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, August 5th. Barclays boosted their target price on Kontoor Brands from $96.00 to $99.00 and gave the stock an “overweight” rating in a research report on Thursday. Wells Fargo & Company increased their price target on Kontoor Brands from $100.00 to $110.00 and gave the company an “overweight” rating in a research note on Wednesday. BTIG Research restated a “buy” rating on shares of Kontoor Brands in a report on Friday. Finally, Wall Street Zen downgraded Kontoor Brands from a “strong-buy” rating to a “hold” rating in a research note on Saturday, May 9th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $94.50.
Read Our Latest Stock Analysis on KTB
Insider Transactions at Kontoor Brands
In other news, EVP Jennifer H. Broyles sold 4,000 shares of the firm’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $81.02, for a total value of $324,080.00. Following the completion of the sale, the executive vice president directly owned 40,261 shares of the company’s stock, valued at $3,261,946.22. This trade represents a 9.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 1.80% of the stock is currently owned by company insiders.
Institutional Trading of Kontoor Brands
Several hedge funds and other institutional investors have recently bought and sold shares of KTB. JPMorgan Chase & Co. boosted its stake in Kontoor Brands by 15.8% during the fourth quarter. JPMorgan Chase & Co. now owns 3,019,204 shares of the company’s stock worth $184,443,000 after buying an additional 413,005 shares during the period. Morgan Stanley lifted its stake in Kontoor Brands by 8.8% in the fourth quarter. Morgan Stanley now owns 1,283,592 shares of the company’s stock worth $78,415,000 after purchasing an additional 104,296 shares during the last quarter. Dimensional Fund Advisors LP boosted its position in shares of Kontoor Brands by 1.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,261,859 shares of the company’s stock valued at $77,088,000 after buying an additional 15,213 shares during the period. T. Rowe Price Investment Management Inc. boosted its position in shares of Kontoor Brands by 23.4% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,136,443 shares of the company’s stock valued at $69,426,000 after buying an additional 215,621 shares during the period. Finally, Man Group plc grew its stake in shares of Kontoor Brands by 23.7% during the second quarter. Man Group plc now owns 765,512 shares of the company’s stock valued at $50,501,000 after buying an additional 146,858 shares during the last quarter. Hedge funds and other institutional investors own 93.06% of the company’s stock.
Trending Headlines about Kontoor Brands
Here are the key news stories impacting Kontoor Brands this week:
- Positive Sentiment: UBS sees substantial upside: UBS highlighted Kontoor’s strong performance and projected nearly 70% potential upside, citing momentum at the Wrangler brand and expectations for continued operational improvement. CNBC UBS analyst outlook
- Positive Sentiment: Full-year outlook raised: Kontoor increased fiscal 2026 adjusted EPS guidance to $5.25-$5.35, above the approximately $5.22 analyst consensus. Revenue guidance remained around $2.7 billion. Kontoor Brands second-quarter results
- Positive Sentiment: Share repurchase supports per-share value: The planned $400 million accelerated share repurchase could reduce the share count and boost EPS, while signaling management’s confidence in the company’s cash generation and valuation. Kontoor Brands share repurchase announcement
- Positive Sentiment: Quarterly earnings beat expectations: Kontoor reported approximately $1.06 in EPS versus the $1.05 consensus. Management cited Wrangler growth, a stronger-than-expected Helly Hansen contribution, and significant gross-margin expansion. Kontoor Brands raises profit guidance
- Neutral Sentiment: Leadership expanded: Joseph Alkire was appointed president in addition to chief financial officer, with broader oversight of Wrangler, Helly Hansen, and global operations. The move is intended to accelerate growth but adds an execution responsibility for the company. Joseph Alkire appointment
- Negative Sentiment: Revenue remains under pressure: Quarterly revenue of $584.3 million was slightly below expectations and declined 11.2% year over year, while EPS was below the prior-year period. This limits the upside from the earnings beat and keeps demand trends a key risk.
About Kontoor Brands
Kontoor Brands, Inc is a global apparel company best known for its Wrangler and Lee denim and lifestyle brands. Established as an independent, publicly traded company in May 2019 following a spin-off from VF Corporation, Kontoor leverages a legacy that dates back to 1889 with the founding of Lee and to 1947 with the introduction of the Wrangler brand. The company focuses on designing, manufacturing and distributing premium, casual and workwear apparel, including jeans, pants, shorts, shirts, jackets and complementary accessories.
Kontoor Brands operates a diversified sales model that combines wholesale partnerships with leading retailers, distribution through e-commerce channels and select direct-to-consumer formats.
Featured Stories
- Five stocks we like better than Kontoor Brands
- Why Are Analysts Freaking Out About Apple’s All-Glass iPhone?
- Asian Market Circuit Breakers Hit Stocks, Not AI Demand
- Riot Platforms Re-Wires the Ledger for a $9B AI Power Play
- Nebius Just Exploded 34% on Blowout Earnings—Is It Time to Buy?
Receive News & Ratings for Kontoor Brands Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kontoor Brands and related companies with MarketBeat.com's FREE daily email newsletter.
