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Kontoor Brands Lifts 2026 Guidance, Sharpens Focus on Wrangler Growth

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Kontoor Brands Lifts 2026 Guidance, Sharpens Focus on Wrangler Growth

Kontoor Brands reported 2026 Q3 earnings on Thursday, just days after the Greensboro, N.C. company completed the divestiture of Lee and received $698 million in net proceeds.

Q3 revenue rose 3 percent to $685 million from the prior year. Gross margin on a reported basis increased 830 basis points to 48.3 percent. On an adjusted basis, gross margin increased 230 basis points to 48.1 percent compared to the prior year, driven by supply chain optimization and a favorable business mix, the company said.

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Wrangler brand global revenue was $485 million, up 3 percent compared to the prior year. U.S. revenue rose 2 percent, driven by a 7 percent increase in direct-to-consumer. U.S. wholesale rose 2 percent. International revenue increased 6 percent, driven by a 25 percent increase in direct-to-consumer and a 4 percent increase in wholesale.

Helly Hansen brand global revenue rose 3 percent to $191 million from the prior year. Sport revenue was $147 million and increased 2 percent versus the prior year. Workwear revenue was $44 million and increased 5 percent compared to the prior year.

Scott Baxter, Kontoor CEO and chairman of the board of directors, said the divestiture of Lee is one of several intentional moves Kontoor has made to simplify its portfolio and shift the organization towards a more growth-oriented mindset. He also named the sale of non-core assets like Rock & Republic to Montana West Inc.


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