Kontoor Brands Boosts 2026 Outlook on Wrangler, Helly Hansen Strength

Kontoor Brands Boosts 2026 Outlook on Wrangler, Helly Hansen Strength

Angela Velasquez

Wed, August 12, 2026 at 7:08 PM GMT+3 3 min read

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Kontoor Brands raised its full-year outlook after a strong Q2 2026.

On Wednesday, the Wrangler and Helly Hansen owner raised its full-year outlook, forecasting revenue in the range of $2.66 billion to $2.71 billion, representing growth of approximately 12 to 13 percent from the prior year.

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Adjusted EPS is now expected to be in the range of $5.25 to $5.35, an increase from prior outlook range $5.15 to $5.25. This includes the impact of approximately $0.55 of unmitigated overhead and other expenses that were previously allocated to the Lee business. In May, Authentic Brands Group signed a definitive agreement with Kontoor Brands to acquire Lee in a deal valued at up to $1 billion.

Kontoor said it expects the divestiture of Lee to be immaterial to earnings per share over a 12-to-18-month period.

Upon closing of the Lee business divestiture, Kontoor said it intends to deploy the expected proceeds into a $400 million Accelerated Share Repurchase agreement, with the remaining proceeds allocated towards voluntary debt payments. The company expects to return more than $900 million of capital in 2026 through share repurchases, dividends and voluntary debt payments, including the proceeds from the Lee divestiture.

Q2 2026 revenue was $584 million, a 19 percent increase compared to prior year, including the contribution from the acquisition of Helly Hansen completed in the second quarter of 2025.

Scott Baxter, Kontoor Brands CEO and chairman of the board of directors, said Q2 results were driven by growth from Wrangler, a stronger-than-expected contribution from Helly Hansen and robust gross margin expansion.

Wrangler brand global revenue was $469 million, up 2 percent compared to prior year. Baxter noted that Wrangler's "diversified growth" was led by strong performance in women's, direct-to-consumer and international, coupled with exceptional profitability and cash generation.

The heritage denim brand's U.S. revenue increased 1 percent, driven by a 9 percent increase in direct-to-consumer. U.S. wholesale was flat compared to prior year. Wrangler international revenue increased 10 percent compared to prior year, driven by a 31 percent increase in direct-to-consumer and a 7 percent increase in wholesale.

Helly Hansen delivered a better-than-expected quarter and for the first half of 2026. Helly Hansen global revenue was $114 million. Sport and Workwear revenue was $70 million and $37 million, respectively. Musto brand revenue was $7 million.

The Greensboro, N.C.-based company ended the second quarter with $58 million in cash and cash equivalents, and $1.1 billion in long-term debt. Inventory was $526 million at the end of the quarter, down 3 percent compared to prior year driven primarily by a reduction in inventory in the Helly Hansen business.

Kontoor also announced that Joseph Alkire has been appointed to president and chief financial officer effective immediately. In his expanded role, he will maintain global responsibilities for the Helly Hansen brand and will expand his oversight to also include the Wrangler brand. He will also continue in his role as chief financial officer and maintain oversight over Kontoor's global operations.

"As we look ahead, we are sharpening our portfolio focus and increased investment on our largest growth opportunities. We are raising our full year outlook based on the strength we have seen in our year-to-date results, and our confidence and visibility as we enter the second half of the year," said Alkire said.

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