NEW YORK, March 4, 2026, 09:44 EST
- Kontoor Brands expects adjusted EPS for 2026 in the $6.40 to $6.50 range, and is projecting revenue of $3.40 billion to $3.45 billion.
- The stock surged roughly 21% Tuesday following the company’s latest outlook and quarterly numbers.
- The company’s 2026 plan accounts for increased U.S. import tariffs, but Mexico remains exempt thanks to USMCA.
Kontoor Brands dropped around 1% Wednesday morning, pulling back after a 21% jump the previous session. The Wrangler and Lee parent projected a profit boost by 2026, even as it faces steeper tariff expenses.
This guidance marks one of the earliest full-year looks at Kontoor’s strategy for the expanded business following its acquisition of outdoor and workwear brand Helly Hansen. Investors are busy sizing up whether the move can sustain momentum, especially as the company ramps up marketing and navigates challenges in wholesale orders.
Apparel makers have been wrestling with unpredictable retailer orders and new trade regulations, and these results arrive right in the thick of it. Kontoor, for its part, has pointed to price hikes, supply chain tweaks, and trimming costs as ways to cushion the blow. Even so, management hasn’t shied away from saying how quickly things could shift.
Kontoor on Tuesday projected 2026 revenue between $3.40 billion and $3.45 billion, with adjusted earnings per share coming in at $6.40 to $6.50. The “adjusted” figure excludes specified restructuring and transformation expenses, according to the company. Kontoor Brands, Inc.
During the earnings call, finance chief Joseph A. Alkire described trade policy as “rapidly evolving,” warning that tariffs remain “uncertain and difficult to predict.” He put the gross tariff cost for 2026 at over $100 million. The company’s plan? Offset that impact within 12 to 18 months, relying on price changes, sourcing tweaks, and supplier moves. The Motley Fool
The plan hinges on shoppers staying resilient and retailers maintaining consistent orders. According to management, retail inventory levels are still “suboptimal”—and partners are hesitant. Meanwhile, the turnaround effort at Lee rolls on, with the company calling this a transition period as they look ahead to 2026.
Fourth-quarter revenue jumped 46% to $1.02 billion, much of that driven by the Helly Hansen acquisition. Adjusted EPS landed at $1.73. Inventory closed out the quarter at $567 million, following a sharp drop from the previous period, according to the company.
Wrangler’s revenue jumped 12% to $562 million in the quarter. Lee brought in $198 million, up 2%. Kontoor also reported Helly Hansen revenue at $254 million for the period.
Kontoor flagged its continued balance-sheet tightening, noting a $200 million voluntary term-loan payment during the quarter. The company is projecting another $225 million in voluntary term-loan payments for 2026, aiming to bring its net leverage ratio under 1.5 times by the end of the year—a key debt-to-earnings benchmark for investors.
The company announced a quarterly dividend of $0.53 per share and bought back $25 million worth of its own stock during the quarter. Looking ahead to 2026, management isn’t factoring in any share repurchases, despite still having $190 million left in its buyback authorization.
Kontoor announced it’s planning a Helly Hansen investor day in Oslo on Sept. 2. CEO Scott Baxter, Alkire, and Helly Hansen Global Brand President Børre Hegbom are scheduled to deliver presentations, along with others.
Kontoor’s denim battle with Levi Strauss is well known, but it squares off with VF Corp in outdoor and workwear, too, depending on the segment. Lately, management has leaned hard on Helly Hansen as their bet to push past jeans, aiming for broader exposure—without giving up their edge on pricing in the mainstays.
