Kontoor Brands Earnings Call Transcripts
Fiscal Year 2026
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Second quarter results showed strong revenue and margin growth, with both Wrangler and Helly Hansen outperforming expectations. The Lee divestiture is on track, supporting significant capital returns and further deleveraging. Full-year guidance was raised on the back of robust first-half performance.
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Announced Lee brand divestiture to focus on Wrangler and Helly Hansen, driving higher growth and profitability. Q1 saw strong revenue and margin expansion, with robust guidance for 2026 and a new $750M share repurchase plan. Majority of Lee sale proceeds will fund buybacks.
Fiscal Year 2025
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Record 2025 results driven by Helly Hansen acquisition and Wrangler growth, with strong cash flow and margin expansion. 2026 guidance calls for 9% revenue growth, higher EPS, and continued deleveraging, despite tariff headwinds.
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Q3 saw strong revenue and margin growth, led by Helly Hansen and continued Wrangler share gains, while Lee's digital and brand efforts showed early promise. Full-year guidance was raised for revenue, margin, and EPS, with deleveraging and Project Genius savings on track.
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Second quarter revenue grew 8% year-over-year, led by Wrangler's continued market share gains and strong Helly Hansen integration. Full-year revenue outlook was raised to 19%–20% growth, with adjusted EPS expected at $5.45 despite tariff headwinds.
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Regulatory approval for the Helly Hansen acquisition sets the stage for accelerated growth, with Q1 results exceeding expectations on margin and earnings. Wrangler showed strong momentum, Lee's repositioning is progressing, and 2025 guidance was raised for revenue, margin, and EPS.
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The acquisition of a leading Outdoor and Workwear brand for $900 million is set to accelerate growth, diversify revenue, and unlock significant synergies, especially in the U.S. and China. Integration will leverage technology and operational strengths, with rapid deleveraging expected within two years.
Fiscal Year 2024
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Revenue and profitability exceeded expectations in 2024, led by Wrangler's strong growth and Project Genius savings. Lee is undergoing a strategic reset, while the Helly Hansen acquisition is set to enhance future earnings. 2025 guidance reflects cautious optimism amid macro uncertainty.
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Third quarter results surpassed expectations with 2% revenue growth, 150 bps gross margin expansion, and strong cash generation. Wrangler continued its market share gains, Lee showed improvement, and Project Jeanius is on track to deliver $100M in savings by 2026.
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Q2 results exceeded expectations with strong gross margin expansion and earnings growth. Full-year guidance for gross margin, EPS, and cash flow was raised, supported by market share gains, new product launches, and Project Jeanius savings.