Kontoor Brands Inc (KTB)

Jeans, Beer & Music: Coors Banquet® and Wrangler® Announce Encore With Second Apparel Collection for Festival SeasonMay 28, 2026 9:34 AM
Business Wire Launching just in time for summer, this music-inspired collection celebrates two iconic brands We’re plugging in the amps in preparation for the second Coors Banquet® and Wrangler® collaboration, this time celebrating a summer of music. Coming on the heels of a successful Coors Banquet x Wrangler Collection that launched last fall, this new lineup features festival favorites: shorts, shirts, vests, sets, outerwear, and caps that will turn heads on and off stage. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260528785337/en/Coors Banquet x Wrangler This collaboration marks a natural evolution for two brands that have spent decades on the main stage. Both Coors Banquet and Wrangler share a storied history in the music scene, with both brands having a longstanding history of working directly with country music artists. From the dusty campgrounds to the front row of the stadium, this collection celebrates a shared heritage of supporting the artists and the fans who define the soundtrack of summer with iconic denim, ice cold Banquet, and music on repeat. Available starting May 28th, the Coors Banquet x Wrangler Collection will feature 23 unique pieces, including men’s and women’s apparel and co-branded caps. Highlights include: Denim Jersey: A classic baseball style with Western heritage, this light, beer-inspired denim wash jersey has pearl snaps and Wrangler and Coors Banquet logos embroidered in yellow across the front Brushpopper Cowboy Cut Work Shirt: This Wrangler staple gets reimagined in a Coors Banquet stripe, featuring the W stitching on the front pockets, pearl snaps, and the Coors Banquet logo tag Men’s Wrangler 13MWZ Cowboy Cut® Jeans: Wrangler’s time tested jeans will come in a beer-inspired denim wash and ecru for this line and include Coors embroidery at the coin pocket as well as a Coors Banquet and a Wrangler patch on each back pocket (the jeans also have matching vests and co-branded, embroidered jackets) Women’s Reworked Short: These popular Wrangler women’s shorts will be available in two options — a beer-inspired denim wash with Rocky Mountain-inspired detailing along the back yoke, and a striped pattern in Coors Banquet’s iconic colorways Women’s Printed Vest and Bailey Flare Jeans: A women’s set that sets itself apart with all over red and white brand logos and iconography. The Bailey Jeans (which also come in a beer-inspired wash in this collection) are fitted in the hip and flare for freedom “Wrangler has been the unofficial uniform of country music for decades, seen on the legends on stage as well as the fans in the front row,” said Holly Wheeler, Vice President of Global Brand Marketing at Kontoor Brands. “Our partnership with Coors Banquet honors that heritage, blending festival style with rugged functionality. This collection is for those who live for the music and the Western lifestyle, designed to withstand the energy of a summer crowd and the grit of the open range alike.” The collection also features a special appearance by longtime Coors Banquet fan Chase Rice, who is sharing the chords of his unreleased song, 'Connie Lou,' on a limited-edition pair of jeans. Printed in Coors Banquet beer-infused ink, these 'Beer Chords' jeans give fans a first look at the track before it officially drops at midnight tonight. “Coors Banquet has always been deeply rooted in the moments and stories that shape country culture,” said Matt Carpenter, Vice President Marketing, Coors Family of Brands. “This collaboration with Wrangler and Chase Rice brings that spirit to life, turning an authentic personal story into something fans can connect with on a deeper level, from the music itself to the craftsmanship behind the ‘Beer Chords.’” Fans can bring home a piece of the Coors Banquet x Wrangler collection via a Wrangler store, or online at shop.coors.com or wrangler.com beginning on May 28, 2026. Prices will range from $24.99 for the caps to $124.99 for the Embroidery Jackets. You can find flatlay and lifestyle imagery of the collection here. ABOUT MOLSON COORS BEVERAGE COMPANY For more than two centuries, Molson Coors has brewed beverages that unite people to celebrate all life's moments. From our core power brands Coors Light, Miller Lite, Coors Banquet, Molson Canadian, Carling and Ožujsko to our above premium brands including Madrí Excepcional, Staropramen, Blue Moon Belgian White and Leinenkugel's Summer Shandy, to our economy and value brands like Miller High Life and Keystone Light, we produce many beloved and iconic beers. While Molson Coors’ history is rooted in beer, we offer a modern portfolio that expands beyond the beer aisle as well, including flavored beverages like Vizzy Hard Seltzer, spirits like Five Trail whiskey and non-alcoholic beverages like ZOA Energy. As a business, our ambition is to be the first choice for our people, our consumers and our customers, and our success depends on our ability to make our products available to meet a wide range of consumer segments and occasions. Molson Coors Beverage Company is a publicly traded company that operates through its Americas and EMEA & APAC reporting segments and is traded on the New York Stock Exchange and Toronto Stock Exchange. To learn more about Molson Coors Beverage Company, visit molsoncoors.com. ABOUT WRANGLER Wrangler®, of Kontoor Brands (NYSE: KTB), has been an icon in authentic American style for 75 years. With a rich legacy rooted in the Western lifestyle, Wrangler is committed to offering superior quality and timeless design. Its collections for men, women, and children look and feel great, inspiring all those who wear them to be strong and ready for everyday life. Wrangler is available in retail stores worldwide, including flagship stores in Fort Worth and Greensboro, department stores, mass-market retailers, specialty shops, top western outfitters, and online. For more information, visit Wrangler.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260528785337/en/ For more information, contact:
Ashley Lutzker
AMP3 PR
ashley@amp3pr.com Original: Jeans, Beer & Music: Coors Banquet® and Wrangler® Announce Encore With Second Apparel Collection for Festival Season

Authentic Brands Group Signs Definitive Agreement to Acquire Lee®May 21, 2026 7:00 AM
PR Newswire (US) NEW YORK, May 21, 2026 /PRNewswire/ -- Authentic Brands Group (Authentic), a global brand and entertainment platform, today announced a definitive agreement to acquire Lee, one of the most recognized and enduring names in global denim, from Kontoor Brands, Inc. (NYSE: KTB). As the owner of some of the most iconic and beloved sports, fashion, media and entertainment intellectual property in the world, Authentic sees Lee as a natural fit for its global platform. Lee is a pioneer in denim and workwear with more than a century of cultural influence, innovation and craftsmanship behind it. Today, the brand generates approximately $1.5 billion in annual retail-equivalent sales across 73 countries, with nearly 40% coming from outside the US and Canada."What makes Lee so compelling is its legacy," said Jamie Salter, Founder and Executive Chairman of Authentic. "It's one of the most important names in denim, with more than a century of heritage, consumer awareness and cultural relevance already built in. At Authentic, we focus on preserving what consumers love about their favorite brands while putting the right partners, distribution and marketing strategies behind them to drive long-term growth. Lee is exactly the kind of brand we are built for."Upon closing of the transaction, Authentic plans to convert the Lee business into a licensing model, leveraging its brand-building expertise, network of more than 1,700 best-in-class partners and powerful marketing and storytelling platform. The Company is in discussions with leading brand operators to support Lee's existing business and expand it across content, experiences and heritage-driven lifestyle categories.The transaction is subject to certain standard closing conditions, including regulatory approval, and is expected to close in the second half of 2026.Kirkland & Ellis LLP is acting as legal advisor to Authentic. Morgan Stanley is acting as financial advisor, and Foley & Lardner LLP is acting as legal advisor to Kontoor Brands, Inc.Kontoor Brands, Inc. has also issued a separate press release regarding the transaction, available here.About Authentic Brands Group
Authentic Brands Group (Authentic) is a leading sports, media, entertainment and lifestyle platform. As the owner of some of the most iconic and beloved intellectual property in the world, Authentic acquires and invests in brands to create long-term value for all of its stakeholders.A digital-first, asset-light platform, Authentic sits at the intersection of culture, commerce and technology. It brings brands to life and cultivates fandom through powerful storytelling, premium content and unforgettable live experiences. Together with more than 1,700 best-in-class licensing partners across 150 countries and an expansive distribution network, Authentic's brands drive more than $36 billion in annual systemwide retail sales worldwide.Authentic's diversified portfolio spans more than 50 brands and reaches nearly one billion social media followers. Its roster includes Reebok, Champion, Shaquille O'Neal, David Beckham, Kevin Hart, Sports Illustrated, Elvis Presley, Muhammad Ali, Marilyn Monroe, GUESS, Aéropostale, Nautica, Eddie Bauer, Lucky Brand, Nine West, Brooks Brothers, Juicy Couture, Vince Camuto, Izod, Van Heusen, Dockers, Ted Baker, Hart Schaffner Marx, Vince, Barneys New York, Judith Leiber, Quiksilver, Spyder, Billabong, Volcom, Roxy, RVCA, DC Shoes, Prince, Sperry and Hunter.For more information, visit corporate.authentic.com. Follow Authentic on LinkedIn, Instagram and WeChat.About Lee
Founded in 1889, Lee is one of the world's most iconic denim and casual apparel brands. Known for its heritage craftsmanship, innovation and timeless style, Lee has shaped generations of culture and self-expression through authentic American design.Contact:
Haley Steinberg
hsteinberg@authentic.com View original content to download multimedia:https://www.prnewswire.com/news-releases/authentic-brands-group-signs-definitive-agreement-to-acquire-lee-302778878.htmlSOURCE Authentic Brands Group Original: Authentic Brands Group Signs Definitive Agreement to Acquire Lee®

Kontoor Brands Enters Into Definitive Agreement to Sell Lee® Business to Authentic Brands GroupMay 21, 2026 6:50 AM
Business Wire Transaction Valued at up to $1 Billion, including $750 Million Initial Transaction Value
Portfolio Transformation Enables Kontoor to Shift Focus to Higher Growth Brands within Attractive Addressable Markets Kontoor Brands, Inc. (NYSE: KTB) today announced it has signed a definitive agreement to sell the Lee® business to Authentic Brands Group (Authentic) for up to $1 billion, including an initial transaction value of $750 million and a $250 million earnout opportunity in future years based on the performance of Lee under Authentic’s ownership. The transaction is subject to required regulatory approvals and customary closing conditions. “The Lee transaction is a deliberate step to sharpen our brand portfolio and unlock investment capacity to fuel accelerated growth for the future of Kontoor,” said Scott Baxter, President, Chief Executive Officer and Chairman of the Board of Kontoor Brands. “By increasing our focus on Wrangler and Helly Hansen, two iconic brands with significant white space opportunities, we are better positioned to fuel a higher growth profile and create even greater value for our shareholders.” “I want to reinforce our commitment to support Lee through the sale process and to personally thank the Lee team for getting us to where we are today. We believe this is a great outcome for Kontoor, the Lee business and Authentic,” added Baxter. Transaction Highlights The divestiture of the Lee business builds on Kontoor’s success and advances the Company’s strategic and financial growth agenda. Highlights include the following: Streamlined Brand Portfolio Architecture Allows for Greater Investment in High-Performing, Strategically Aligned Brands Brand portfolio with deep heritage, authenticity and category authority in denim, outdoor and workwear Sharpens focus on Wrangler® and Helly Hansen®, two iconic brands with significant global growth potential Enables more concentrated brand investment and improved execution Improves returns on strategic initiatives by aligning resources behind the Company’s higher-performing assets Favorably Shifts Kontoor’s Portfolio Towards Higher Growth Categories, Channels, Geographies and Consumers Repositions the portfolio towards structurally higher-growth segments anchored in denim, outdoor and workwear Enhances Kontoor’s long-term growth and profitability profile, reinforcing its commitment to delivering long-term value for shareholders Increases Capital Allocation Optionality Reinforces Kontoor’s commitment to a shareholder-focused capital allocation framework, including strategic and disciplined portfolio management and capital stewardship Transaction proceeds are anticipated to be deployed through increased share repurchases under our $750 million authorization as well as voluntary term loan payments Creates capacity for disciplined reinvestment behind significant organic growth opportunities Strengthens the balance sheet and enhances financial flexibility Transaction Details The transaction was unanimously approved by the Board of Directors of Kontoor. The transaction is expected to close in the second half of 2026, subject to the receipt of required regulatory approvals and customary closing conditions. Kontoor has published further details in a presentation accessible at https://www.kontoorbrands.com/investors. Advisors Morgan Stanley & Co. LLC is serving as Kontoor Brands’ exclusive financial advisor and Foley & Lardner LLP as its legal advisor. About Kontoor Brands Kontoor Brands, Inc. (NYSE: KTB) is a portfolio of three of the world’s most iconic lifestyle, outdoor and workwear brands: Wrangler®, Lee® and Helly Hansen®. Kontoor Brands is a purpose-led organization focused on leveraging its global platform, strategic sourcing model and best-in-class supply chain to drive brand growth and deliver long-term value for its stakeholders. For more information about Kontoor Brands, please visit www.KontoorBrands.com. Forward-Looking Statements Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “should,” “may” and other words and terms of similar meaning, including statements herein regarding the expected benefits, financial impact and timing of the sale of the Lee business, including the use of proceeds therefrom for debt reduction or share purchases, or use of future dates. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as required under the U.S. federal securities laws. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to, such things as, whether and when the required regulatory approvals for the proposed sale of the Lee business will be obtained, whether and when the closing conditions will be satisfied and whether and when the proposed sale of the Lee business will close, if at all; our ability to execute, and realize benefits, successfully, or at all, from, the proposed sale of the Lee business; macroeconomic conditions, including inconsistent consumer demand despite recent declines in interest rates, fluctuating foreign currency exchange rates, moderating inflation and global supply chain issues, as well as the ongoing impact of tariffs and uncertainty regarding the outcome of trade negotiations, import/export regulations and tariff policies, continue to adversely impact global economic conditions and have had, and may continue to have, a negative impact on the Company's business, results of operations, financial condition and cash flows (including future uncertain impacts); our ability to deleverage on the anticipated time frame or at all; the level of consumer demand for apparel; reliance on a small number of large customers; potential difficulty in integrating Helly Hansen and/or in achieving the expected growth, cost savings and/or synergies from the acquisition; potential risks and uncertainties in completing the sale of the Lee business, if at all, and potential risks in segregating and disposing of the Lee business and the Company’s ability to mitigate any stranded costs from the potential disposition; supply chain and shipping disruptions, which could continue to result in shipping delays, an increase in transportation costs and increased product costs or lost sales; intense industry competition; the ability to accurately forecast demand for products; the Company’s ability to gauge consumer preferences and product trends, and to respond to constantly changing markets; the Company’s ability to maintain the images of its brands; disruption and volatility in the global capital and credit markets and its impact on the Company's ability to obtain short-term or long-term financing on favorable terms; the Company maintaining satisfactory credit ratings; restrictions on the Company’s business relating to its debt obligations; increasing pressure on margins; e-commerce operations through the Company’s direct-to-consumer business; the financial difficulty experienced by the retail industry; possible goodwill and other asset impairment; the ability to implement the Company’s business strategy; the stability of manufacturing facilities and foreign suppliers; fluctuations in wage rates and the price, availability and quality of raw materials and contracted products, including as a result of tariffs and reciprocal tariffs; the reliance on a limited number of suppliers for raw material sourcing and the ability to obtain raw materials on a timely basis or in sufficient quantity or quality; disruption to distribution systems; seasonality; unseasonal or severe weather conditions; potential challenges with the Company’s implementation of Project Jeanius; the Company's and its vendors’ ability to maintain the strength and security of information technology systems; the risk that facilities and systems and those of third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss or maintain operational performance; ability to properly collect, use, manage and secure consumer and employee data; legal, regulatory, political and economic risks; the impact of climate change and related legislative and regulatory responses; stakeholder response to sustainability issues, including those related to climate change; compliance with anti-bribery, anti-corruption and anti-money laundering laws by the Company and third-party suppliers and manufacturers; changes in tax laws and liabilities; our ability to successfully utilize our share repurchase program; the costs of compliance with or the violation of national, state and local laws and regulations for environmental, consumer protection, employment, privacy, safety and other matters; continuity of members of management; labor relations; the ability to protect trademarks and other intellectual property rights; the ability of the Company’s licensees to generate expected sales and maintain the value of the Company’s brands; volatility in the price and trading volume of the Company’s common stock; anti-takeover provisions in the Company’s organizational documents; and fluctuations in the amount and frequency of our share repurchases. Many of the foregoing risks and uncertainties will be exacerbated by any worsening of the global business and economic environment. More information on potential factors that could affect the Company's financial results are described in detail in the Company’s most recent Annual Report on Form 10-K and in other reports and statements that the Company files with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20260521532973/en/ Investors:
Michael Karapetian, (336) 332-4263
Vice President, Global Brand & Operations Finance and Corporate Investor Relations
Michael.Karapetian@kontoorbrands.com or Media:
Julia Burge, (336) 332-5122
Senior Director, Corporate Communications
Julia.Burge@kontoorbrands.com Original: Kontoor Brands Enters Into Definitive Agreement to Sell Lee® Business to Authentic Brands Group

Kontoor Brands Reports Stronger 2026 First Quarter Results and Raises Full Year Outlook; Announces Planned Divestiture of Lee and $750 Million Share Repurchase ProgramMay 7, 2026 6:50 AM
Business Wire During the first quarter, the Company initiated a competitive process to divest the Lee business. As a result, the Company’s first quarter results and updated 2026 outlook reflect the presentation of the Lee business as discontinued operations. Key Highlights First quarter revenue including the contribution from discontinued operations was $808 million. Revenue from Lee of $195 million now reported in discontinued operations. First quarter revenue from continuing operations of $613 million exceeded expectations driven by 4 percent growth in Wrangler and 16 percent growth in Helly Hansen on a pro-forma basis First quarter reported EPS including the contribution from discontinued operations was $1.65. First quarter adjusted EPS including the contribution from discontinued operations was $1.55. First quarter adjusted EPS from continuing operations was $1.06 Full year revenue outlook including the contribution from discontinued operations is now expected to be in the range of $3.41 to $3.46 billion ($3.40 to $3.45 billion prior). Expected revenue from Lee of approximately $750 million now reported in discontinued operations. Full year revenue outlook from continuing operations is now expected to be in the range of $2.66 to $2.71 billion driven by growth in Wrangler and Helly Hansen Full year adjusted EPS outlook including the contribution from discontinued operations is now expected to be in the range of $6.60 to $6.70 ($6.40 to $6.50 prior) The Company announced plans to divest the Lee business to sharpen strategic focus on its largest growth assets and enhance capital allocation optionality The Company’s Board of Directors approved a new $750 million share repurchase authorization Kontoor Brands, Inc. (NYSE: KTB) today reported financial results for its first quarter ended April 4, 2026. “Our strong first quarter results reflect the power of our operating model combined with strong execution,” said Scott Baxter, President, Chief Executive Officer and Chairman of the Board of Directors. “Wrangler drove another quarter of broad-based growth and market share gains, and Helly Hansen delivered better-than-expected revenue and profitability. Our decision to divest Lee enables sharper focus on the opportunities with greatest potential to maximize shareholder returns as we align the Kontoor brand portfolio to a higher growth profile.” “Our updated outlook reflects better than expected first quarter results and improving visibility for Wrangler and Helly Hansen,” added Joe Alkire, Kontoor Brands’ Executive Vice President, Chief Financial Officer and Global Head of Operations. “Our planned divestiture of the Lee business is in an advanced state and has attracted interest from multiple parties. We are confident in our ability to successfully complete a transaction this year, resulting in significantly more capital allocation optionality and accelerated growth as we drive enhanced shareholder returns into 2027 and beyond.” Planned Divestiture of the Lee Business During the first quarter of 2026, the Company initiated a competitive process to divest the Lee business. The process has attracted interest from multiple parties and the Company anticipates entering into a definitive agreement to divest the Lee business in 2026. As a result, the Company has reported the results of the Lee business in discontinued operations. The Company expects the divestiture of Lee to be immaterial to earnings per share over a 12-to-18-month period. The earnings contribution of the Lee business will be offset through strong capital deployment and mitigation of overhead and other expenses through restructuring and other mitigating cost actions to offset the costs that were previously allocated to the Lee business. First Quarter 2026 Income Statement from Continuing Operations Review Revenue from continuing operations was $613 million and increased 45 percent compared to prior year, including the contribution from the acquisition of Helly Hansen completed in the second quarter of 2025. Wrangler brand global revenue was $436 million and increased 4 percent compared to prior year. Wrangler U.S. revenue increased 1 percent, driven by a 6 percent increase in direct-to-consumer and a 1 percent increase in wholesale. Wrangler international revenue increased 20 percent compared to prior year, driven by a 38 percent increase in direct-to-consumer and a 17 percent increase in wholesale. Helly Hansen global revenue was $176 million. Sport and Workwear revenue was $120 million and $45 million, respectively. Musto brand revenue was $11 million. Gross margin from continuing operations on a reported basis increased 810 basis points to 53.7 percent. On an adjusted basis, gross margin from continuing operations increased 470 basis points to 50.6 percent compared to prior year, driven by the impact of Helly Hansen, the benefits of Project Jeanius and channel mix, partially offset by increased product costs, net of pricing actions. Adjusted gross margin includes $1 million of overhead and other expenses that were previously allocated to the Lee business. Selling, General & Administrative (SG&A) expenses from continuing operations were $239 million, or 39.0 percent of revenue on a reported basis. On an adjusted basis, SG&A expenses from continuing operations were $224 million, or 36.5 percent of revenue. The increase in SG&A expenses was driven by the impact of Helly Hansen, higher demand creation and direct-to-consumer investments and volume-based variable expenses, partially offset by the benefits from Project Jeanius. Adjusted SG&A expenses include $7 million of overhead and other expenses that were previously allocated to the Lee business. Operating income from continuing operations was $90 million on a reported basis. On an adjusted basis, operating income from continuing operations was $87 million and increased 60 percent compared to prior year. Operating income includes $8 million of overhead and other expenses that were previously allocated to the Lee business. Earnings per share (EPS) from continuing operations was $1.09 on a reported basis. On an adjusted basis, EPS from continuing operations was $1.06, including a $0.26 contribution from Helly Hansen. Adjusted EPS includes $0.11 of overhead and other expenses that were previously allocated to the Lee business. Balance Sheet and Liquidity from Continuing Operations Review The Company ended the first quarter with $56 million in cash and cash equivalents, and $1.14 billion in long-term debt. At the end of the first quarter, the Company had no outstanding borrowings under the Revolving Credit Facility and $493 million available for borrowing against this facility. Inventory at the end of the first quarter was $464 million, including the contribution of inventory from Helly Hansen. As previously announced, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.53 per share, payable on June 18, 2026, to shareholders of record at the close of business on June 8, 2026. The Company returned $54 million to shareholders through dividends and share repurchases during the first quarter, including the repurchase of $25 million of common stock. Share Repurchase Authorization The Company’s Board of Directors has authorized a share repurchase program of up to $750 million of the Company’s common stock. The new repurchase authorization replaces the existing share repurchase program announced on December 11, 2023. “Our $750 million share repurchase program reflects the confidence we have in our business moving forward and the opportunities to generate significant value from our sharper brand portfolio,” said Scott Baxter, President, Chief Executive Officer and Chairman of Kontoor Brands. “We remain committed to returning cash to shareholders while maintaining an unrelenting focus on delivering superior total shareholder return over time.” The timing and amount of repurchases will be determined by the Company based on its evaluation of market conditions, continued compliance with its debt covenants and other factors. The program does not have an expiration date but may be suspended, modified or terminated at any time without prior notice. The Company expects to fund repurchases through cash flow generated from operations and expected proceeds from the planned divestiture of the Lee brand. Tariff Update Following the U.S. Supreme Court’s decision that the International Emergency Economic Powers Act (“IEEPA”) does not authorize tariffs, the U.S. Court of International Trade has ordered U.S. Customs and Border Protection to refund IEEPA duties. The Company believes it is probable that it will recover the IEEPA tariffs previously paid and therefore has recognized a net receivable of $54 million as of March 2026. As a result, during the first quarter of 2026, the Company reduced cost of goods sold by approximately $49 million on a reported basis, representing the reversal of expense for IEEPA tariffs on inventory previously sold. Of the $49 million reduction in cost of goods sold, $29 million was related to tariffs expensed in 2025. On an adjusted basis, the Company has excluded the impact of the reversal of expense for 2025-related IEEPA tariffs on first quarter results and in the updated 2026 outlook. The Company’s outlook assumes a 15 percent reciprocal tariff rate on applicable inventory receipts for the remainder of 2026. For applicable inventory receipts effective February 24, 2026, a 10 percent reciprocal tariff rate applied, which remains in effect. Applicable inventory owned prior to February 24, 2026 is exempt from reciprocal tariffs. The Company’s updated outlook includes the impact from increases in tariffs on all countries from which the Company sources product, with the exception of Mexico. Based on currently available information, the Company’s imports from Mexico to the U.S. remain exempt under USMCA. The Company is evaluating the impact of the United States and Bangladesh reciprocal trade framework. The Company utilizes U.S. grown cotton in more than 80 percent of products sourced from Bangladesh which may qualify for a duty exemption under the trade framework. Updated Full Year 2026 Outlook from Continuing Operations The Company’s updated full year 2026 outlook reflects the impact of the planned divestiture of the Lee business, which is now reported in discontinued operations. Revenue including the expected contribution from discontinued operations is now anticipated to be in the range of $3.41 to $3.46 billion. This compares to the prior outlook range of $3.40 to $3.45 billion. Lee revenue is expected to approximate $750 million and is now reported in discontinued operations. Revenue from continuing operations is expected to be in the range of $2.66 to $2.71 billion. Adjusted EPS including the expected contribution from discontinued operations is now anticipated to be in the range of $6.60 to $6.70. This compares to the prior outlook range of $6.40 to $6.50. The expected EPS contribution from the Lee business now reported in discontinued operations is approximately $0.90, or approximately $1.45 including the impact of $0.55 of overhead and other expenses previously allocated to the Lee business that were reported in continuing operations. Adjusted EPS from continuing operations is expected to be in the range of $5.15 to $5.25, including the impact of approximately $0.55 of unmitigated overhead and other expenses that were previously allocated to the Lee business. The Company expects the divestiture of Lee to be immaterial to earnings per share over a 12-to-18-month period. The earnings contribution of the Lee business will be offset through strong capital deployment and mitigation of overhead and other expenses, through restructuring and other mitigating cost actions to offset the costs that were previously allocated to the Lee business.   Prior 2026 Outlook Updated 2026 Outlook Revenue including discontinued operations $3.40 to $3.45 billion $3.41 to $3.46 billion Lee revenue reported in discontinued operations $0.75 billion $0.75 billion Revenue from continuing operations $2.65 to $2.70 billion $2.66 to $2.71 billion Adjusted EPS including discontinued operations $6.40 to $6.50 $6.60 to $6.70 Less: EPS of discontinued operations before reclass of allocated expenses   $0.90 Adjusted EPS from continuing operations before reclass of allocated expenses   $5.70 to $5.80 Less: EPS impact of reclass of allocated expenses   $0.55 Adjusted EPS from continuing operations   $5.15 to $5.25 The Company’s full year 2026 outlook from continuing operations also includes the following assumptions. Adjusted gross margin is expected to be in the range of 48.3 percent to 48.5 percent, representing an increase of 180 to 200 basis points compared to prior year. The benefits from Project Jeanius, channel and product mix, and the mix benefit from Helly Hansen are expected to more than offset the impact from increases in product costs, net of pricing actions. Adjusted SG&A expenses, including the unmitigated impact of expenses previously allocated to the Lee business, are expected to increase approximately 18 percent compared to prior year, including the annualization of Helly Hansen expenses and an increase in investment in demand creation and other strategic growth initiatives, offset by the benefits of Project Jeanius and the impact of the 53rd week in prior year. Adjusted operating income, including the unmitigated impact of expenses previously allocated to the Lee business, is expected to be in the range of $411 to $418 million, representing an increase of 15 percent to 17 percent compared to prior year. Capital expenditures are expected to be approximately $40 million. The Company expects an effective tax rate of approximately 20 percent on adjusted earnings, including the benefit of synergies from Helly Hansen. For the first half of 2026, the Company expects an effective tax rate of approximately 25 percent. Interest expense is expected to be approximately $55 million. The outlook for interest expense does not include the impact of potential additional voluntary debt repayments with a portion of the expected proceeds from the planned divestiture of the Lee business. Other expense is expected to be approximately $15 million. Average shares outstanding are expected to be approximately 56 million. The outlook for average shares outstanding does not include the impact of potential additional share repurchases from the expected proceeds from the planned divestiture of the Lee business. The Company now expects cash from operations of approximately $450 million, including the expected contribution from the Lee business which is reported in discontinued operations. The Company expects to make voluntary term loan payments of $225 million, excluding the impact of potential additional voluntary debt repayments with a portion of the expected proceeds from the planned divestiture of the Lee business. The Company expects to achieve a net leverage ratio below 1.5 times on a continuing operations basis by year-end. Webcast Information Kontoor Brands will host its first quarter 2026 conference call beginning at 8:30 a.m. Eastern Time today, May 7, 2026. The conference will be broadcast live via the Internet, accessible at https://www.kontoorbrands.com/investors. For those unable to listen to the live broadcast, an archived version will be available at the same location. Non-GAAP Financial Measures This release refers to “adjusted”, “organic” and “constant currency” amounts from 2026 and 2025, which are further described in the sections below. All per share amounts are presented on a diluted basis. Amounts as presented herein may not recalculate due to the use of unrounded numbers. Adjusted Amounts - This release refers to “adjusted” amounts. Adjustments during 2026 represent (i) business optimization activities associated with the continued execution of Project Jeanius, (ii) acquisition and integration-related costs associated with the Helly Hansen acquisition and, (iii) excluding the impact of the reversal of expense for 2025 IEEPA-related tariffs on first quarter of 2026 results. Adjustments during 2025 represent (i) restructuring and transformation costs related to business optimization activities associated with Project Jeanius, (ii) actions to streamline and transfer select production within our internal manufacturing network and, (iii) acquisition and integration-related costs associated with the Helly Hansen acquisition. Additional information regarding adjusted amounts is provided in notes to the supplemental financial information included with this release. Organic Amounts - This release refers to “organic” amounts, which represent operating results excluding contributions from the Helly Hansen® and Musto® brands. Constant Currency - This release refers to “reported” amounts in accordance with GAAP, which include translation and transactional impacts from changes in foreign currency exchange rates. This release also refers to “constant currency” amounts, which exclude the translation impact of changes in foreign currency exchange rates. Reconciliations of these non-GAAP measures to the most comparable GAAP measures are presented in the supplemental financial information included with this release that identifies and quantifies all reconciling adjustments and provides management's view of why this non-GAAP information is useful to investors. While management believes that these non-GAAP measures are useful in evaluating the business, this information should be viewed in addition to, and not as an alternate for, reported results under GAAP. The non-GAAP measures used by the Company in this release may be different from similarly titled measures used by other companies. For forward-looking non-GAAP measures included in this filing, the Company does not provide a reconciliation to the most comparable GAAP financial measures because the information needed to reconcile these measures is unavailable due to the inherent difficulty of forecasting the timing and/or amount of various items that have not yet occurred and have been excluded from adjusted measures. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with the Company’s accounting policies for future periods requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort. About Kontoor Brands Kontoor Brands, Inc. (NYSE: KTB) is a portfolio of three of the world’s most iconic lifestyle, outdoor and workwear brands: Wrangler®, Lee® and Helly Hansen®. Kontoor Brands is a purpose-led organization focused on leveraging its global platform, strategic sourcing model and best-in-class supply chain to drive brand growth and deliver long-term value for its stakeholders. For more information about Kontoor Brands, please visit www.KontoorBrands.com. Forward-Looking Statements Certain statements included in this release and attachments are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “should,” “may” and other words and terms of similar meaning or use of future dates. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as required under the U.S. federal securities laws. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to: macroeconomic conditions, including inconsistent consumer demand despite recent declines in interest rates, fluctuating foreign currency exchange rates, moderating inflation and global supply chain issues, as well as the ongoing impact of tariffs and uncertainty regarding the outcome of trade negotiations, import/export regulations and tariff policies, continue to adversely impact global economic conditions and have had, and may continue to have, a negative impact on the Company's business, results of operations, financial condition and cash flows (including future uncertain impacts); the level of consumer demand for apparel; reliance on a small number of large customers; potential difficulty in integrating Helly Hansen and/or in achieving the expected growth, cost savings and/or synergies from the acquisition; potential risks and uncertainties in completing the sale of the Lee business, if at all, and potential risks in segregating and disposing of the Lee business and the Company’s ability to mitigate any stranded costs from the potential disposition; supply chain and shipping disruptions, which could continue to result in shipping delays, an increase in transportation costs and increased product costs or lost sales; intense industry competition; the ability to accurately forecast demand for products; the Company’s ability to gauge consumer preferences and product trends, and to respond to constantly changing markets; the Company’s ability to maintain the images of its brands; disruption and volatility in the global capital and credit markets and its impact on the Company's ability to obtain short-term or long-term financing on favorable terms; the Company maintaining satisfactory credit ratings; restrictions on the Company’s business relating to its debt obligations; increasing pressure on margins; e-commerce operations through the Company’s direct-to-consumer business; the financial difficulty experienced by the retail industry; possible goodwill and other asset impairment; the ability to implement the Company’s business strategy; the stability of manufacturing facilities and foreign suppliers; fluctuations in wage rates and the price, availability and quality of raw materials and contracted products, including as a result of tariffs and reciprocal tariffs; the reliance on a limited number of suppliers for raw material sourcing and the ability to obtain raw materials on a timely basis or in sufficient quantity or quality; disruption to distribution systems; seasonality; unseasonal or severe weather conditions; potential challenges with the Company’s implementation of Project Jeanius; the Company's and its vendors’ ability to maintain the strength and security of information technology systems; the risk that facilities and systems and those of third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss or maintain operational performance; ability to properly collect, use, manage and secure consumer and employee data; legal, regulatory, political and economic risks; the impact of climate change and related legislative and regulatory responses; stakeholder response to sustainability issues, including those related to climate change; compliance with anti-bribery, anti-corruption and anti-money laundering laws by the Company and third-party suppliers and manufacturers; changes in tax laws and liabilities; the costs of compliance with or the violation of national, state and local laws and regulations for environmental, consumer protection, employment, privacy, safety and other matters; continuity of members of management; labor relations; the ability to protect trademarks and other intellectual property rights; the ability of the Company’s licensees to generate expected sales and maintain the value of the Company’s brands; volatility in the price and trading volume of the Company’s common stock; anti-takeover provisions in the Company’s organizational documents; and fluctuations in the amount and frequency of our share repurchases. Many of the foregoing risks and uncertainties will be exacerbated by any worsening of the global business and economic environment. More information on potential factors that could affect the Company's financial results are described in detail in the Company’s most recent Annual Report on Form 10-K and in other reports and statements that the Company files with the SEC.   KONTOOR BRANDS, INC. Condensed Consolidated Statements of Operations (Unaudited)         Three Months Ended March   % (Dollars and shares in thousands, except per share amounts)   2026   2025   Change Net revenues   $ 613,322     $ 423,001     45% Costs and operating expenses             Cost of goods sold     283,948       230,267     23% Selling, general and administrative expenses     239,269       161,365     48% Total costs and operating expenses     523,217       391,632     34% Operating income     90,105       31,369     187% Interest expense     (16,084 )     (9,808 )   64% Interest income     2,184       3,319     (34)% Other expense, net     (2,602 )     (10,293 )   (75)% Income from continuing operations before income taxes     73,603       14,587     405% Income taxes     (17,964 )     (4,338 )   314% Income from equity method investment     5,399       —     * Income from continuing operations     61,038       10,249     496% Income from discontinued operations, net of tax     31,401       32,633     (4)% Net income   $ 92,439     $ 42,882     116%               Earnings per common share - basic             Continuing operations   $ 1.10     $ 0.18       Discontinued operations   $ 0.57     $ 0.59       Total earnings per common share - basic   $ 1.67     $ 0.77                     Earnings per common share - diluted             Continuing operations   $ 1.09     $ 0.18       Discontinued operations   $ 0.56     $ 0.58       Total earnings per common share - diluted   $ 1.65     $ 0.76                     Weighted average shares outstanding             Basic     55,222       55,355       Diluted     55,996       56,059       * Calculation not meaningful. Basis of presentation for all financial tables within this release: The Company operates and reports using a 52/53-week fiscal year ending on the Saturday closest to December 31 each year. For presentation purposes herein, all references to periods ended March 2026 and March 2025 correspond to the 13-week fiscal periods ended April 4, 2026 and March 29, 2025, respectively. References to March 2026, December 2025 and March 2025 relate to the balance sheets as of April 4, 2026, January 3, 2026 and March 29, 2025, respectively. Amounts herein may not recalculate due to the use of unrounded numbers. KONTOOR BRANDS, INC. Condensed Consolidated Balance Sheets (Unaudited)     (In thousands)   March 2026   December 2025   March 2025 ASSETS             Current assets             Cash and cash equivalents   $ 56,411   $ 77,215   $ 320,790 Accounts receivable, net     244,996     209,419     131,958 Inventories     463,501     435,945     298,810 Prepaid expenses and other current assets     99,156     102,056     57,371 Current assets of discontinued operations     259,335     256,481     278,849 Total current assets     1,123,399     1,081,116     1,087,778 Property, plant and equipment, net     112,657     113,285     82,955 Operating lease assets     124,193     110,330     18,931 Intangible assets, net     450,206     445,584     6,791 Goodwill     459,211     451,006     129,034 Other assets     215,292     212,294     176,045 Other assets of discontinued operations     165,117     169,057     174,145 TOTAL ASSETS   $ 2,650,075   $ 2,582,672   $ 1,675,679 LIABILITIES AND EQUITY             Current liabilities             Current portion of long-term debt   $ 13,125   $ 8,750   $ — Accounts payable     240,111     195,560   $ 161,240 Accrued and other current liabilities     192,209     237,864     112,481 Operating lease liabilities, current     29,763     22,418     10,328 Current liabilities of discontinued operations     125,808     129,035     107,091 Total current liabilities     601,016     593,627     391,140 Operating lease liabilities, noncurrent     101,865     95,422     10,464 Other liabilities     168,091     164,431     77,484 Long-term debt     1,130,622     1,134,579     735,640 Other liabilities of discontinued operations     29,612     29,746     34,279 Total liabilities     2,031,206     2,017,805     1,249,007 Commitments and contingencies             Total equity     618,869     564,867     426,672 TOTAL LIABILITIES AND EQUITY   $ 2,650,075   $ 2,582,672   $ 1,675,679   KONTOOR BRANDS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited)                         Three Months Ended March (in thousands) 2026 2025 OPERATING ACTIVITIES                 Net income $ 92,439 $ 42,882 Adjustments to reconcile net income to cash provided by operating activities:                 Depreciation and amortization     15,338       9,637   Stock-based compensation     6,571       14,462   Other, including working capital changes     (68,087 )     10,644   Cash provided by operating activities     46,261       77,625   INVESTING ACTIVITIES                 Property, plant and equipment expenditures     (5,963 )     (2,732 ) Capitalized computer software     (2,383 )     (1,503 ) Proceeds from sale of assets     7,242       —   Proceeds from deferred purchase price settlements     5,601       —   Other     (592 )     (527 ) Cash provided (used) by investing activities     3,905       (4,762 ) FINANCING ACTIVITIES                 Borrowings under revolving credit facility     22,500       —   Repayments under revolving credit facility     (22,500 )     —   Repayments of term loan     —       (5,000 ) Repurchases of Common Stock     (25,000 )     —   Dividends paid     (29,339 )     (28,824 ) Shares withheld for taxes, net of proceeds from issuance of Common Stock     (15,154 )     (4,052 ) Cash used by financing activities     (69,493 )     (37,876 ) Effect of foreign currency rate changes on cash and cash equivalents     (2,009 )     (12,343 ) Net change in cash and cash equivalents     (21,336 )     22,644   Cash and cash equivalents – beginning of period     108,442       334,066   Cash and cash equivalents – end of period   $ 87,106     $ 356,710     KONTOOR BRANDS, INC. Supplemental Financial Information Business Segment Information (Unaudited)                                 Three Months Ended March     % Change
Constant
Currency (a) (Dollars in thousands)   2026   2025   % Change   Segment revenues:                         Wrangler   $ 435,839     $ 420,246     4%   2% Helly Hansen     165,480       —     *   * Total reportable segment revenues     601,319       420,246     43%   37% Other revenues (b)     12,003       2,755     336%   289% Total net revenues   $ 613,322     $ 423,001     45%   39% Segment profit                         Wrangler   $ 121,769     $ 86,848     40%     Helly Hansen     19,653       —     *     Reconciliation to income before income taxes:                         Corporate and other expenses     (53,704 )     (65,555 )   (18)%     Interest expense     (16,084 )     (9,808 )   64%     Interest income     2,184       3,319     (37)%     Loss related to other revenues (b)     (215 )     (217 )   *     Income from continuing operations before income taxes   $ 73,603     $ 14,587     405%     (a) Refer to constant currency definition on the following pages. (b) We report an “Other” category to reconcile segment revenues to total net revenues and segment profit to income before income taxes, but the Other category does not meet the criteria to be considered a reportable segment. Other includes sales and licensing of the Musto® and Chic® brands, as well as other company-owned brands and private label apparel, and the associated costs. * Calculation not meaningful. KONTOOR BRANDS, INC. Supplemental Financial Information Business Segment Information – Continuing Operations - Constant Currency Basis (Non-GAAP) (Unaudited)         Three Months Ended March 2026 (In thousands)   As Reported
under GAAP   Adjust for Foreign
Currency Exchange   Constant Currency Segment revenues:             Wrangler   $ 435,839   $ (5,443 )   $ 430,396 Helly Hansen     165,480     (20,417 )     145,063 Total reportable segment revenues     601,319     (25,860 )     575,459 Other revenues     12,003     (1,278 )     10,725 Total net revenues   $ 613,322   $ (27,138 )   $ 586,184 Constant Currency Financial Information The Company is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by the Company from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses. To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period). These constant currency performance measures should be viewed in addition to, and not as an alternative for, reported results under GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.   KONTOOR BRANDS, INC. Supplemental Financial Information Reconciliation of Adjusted Financial Measures - Quarter-to-Date (Non-GAAP) (Unaudited)                     Three Months Ended March (Dollars in thousands, except per share amounts) 2026   2025                 Net revenues - as reported under GAAP $ 613,322     $ 423,001   Contribution from Helly Hansen (a)   176,010       —   Organic net revenues $ 437,312     $ 423,001                                   Cost of goods sold - as reported under GAAP $ 283,948     $ 230,267   Restructuring and transformation costs (b)   (2,828 )     (1,348 ) U.S. Customs 2025 tariffs (c)   21,696       —   Adjusted cost of goods sold   302,816       228,919   Contribution from Helly Hansen (a)   77,951       —   Adjusted organic cost of goods sold $ 224,865     $ 228,919                                   Selling, general and administrative expenses - as reported under GAAP $ 239,269     $ 161,365   Restructuring and transformation costs (b)   (2,858 )     (11,156 ) Acquisition and integration-related costs (d)   (12,708 )     (10,326 ) Adjusted selling, general and administrative expenses   223,703       139,883   Contribution from Helly Hansen (a)   79,033       —   Adjusted organic selling, general and administrative expenses $ 144,670     $ 139,883                                   Other expense, net - as reported under GAAP $ (2,602 )   $ (10,293 ) Acquisition and integration-related costs (d)   60       8,865   Adjusted other expense, net $ (2,542 )   $ (1,428 )                                 Diluted earnings per share from continuing operations - as reported under GAAP $ 1.09     $ 0.18   Restructuring and transformation costs (b)   0.05       0.18   U.S. Customs 2025 tariffs (c)   (0.20 )     —   Acquisition and integration-related costs (d)   0.12       0.26   Adjusted diluted earnings per share from continuing operations $ 1.06     $ 0.62   Contribution from Helly Hansen (a)   0.26       —   Adjusted organic diluted earnings per share from continuing operations $ 0.80     $ 0.62                   Adjusted diluted earnings per share from continuing operations $ 1.06     $ 0.62   Adjusted contribution from discontinued operations   0.49       0.58   Adjusted diluted earnings per share $ 1.55     $ 1.20                   Net income from continuing operations - as reported under GAAP $ 61,038     $ 10,249   Income taxes   17,964       4,338   Interest expense   16,084       9,808   Interest income   (2,184 )     (3,319 ) EBIT from continuing operations $ 92,902     $ 21,076   Depreciation and amortization   13,752       7,349   EBITDA from continuing operations $ 106,654     $ 28,425   Restructuring and transformation costs (b)   5,686       12,504   U.S. Customs 2025 tariffs (c)   (21,696 )     —   Acquisition and integration-related costs (d)   12,768       19,191   Adjusted EBITDA from continuing operations $ 103,412     $ 60,120   As a percentage of total net revenues   16.9 %     14.2 % Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis, on an adjusted basis and on an adjusted organic basis, which excludes the operating results from the Helly Hansen acquisition. EBIT, EBITDA and adjusted presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers. (a) Contribution from Helly Hansen represents the adjusted operating results from the Helly Hansen® and Musto® brands. (b) See Note 1 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document. (c) See Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document. (d) See Note 3 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document. KONTOOR BRANDS, INC. Supplemental Financial Information Summary of Select GAAP and Non-GAAP Measures (Unaudited)         Three Months Ended March     2026   2025 (Dollars in thousands, except per share amounts)   GAAP   Adjusted   Adjusted Organic   GAAP   Adjusted                       Net revenues   $ 613,322     $ 613,322     $ 437,312     $ 423,001     $ 423,001                         Gross margin   $ 329,374     $ 310,506     $ 212,447     $ 192,734     $ 194,082   As a percentage of total net revenues     53.7 %     50.6 %     48.6 %     45.6 %     45.9 %                       Selling, general and administrative expenses   $ 239,269     $ 223,703     $ 144,670     $ 161,365     $ 139,883   As a percentage of total net revenues     39.0 %     36.5 %     33.1 %     38.1 %     33.1 %                       Operating income from continuing operations   $ 90,105     $ 86,803     $ 67,777     $ 31,369     $ 54,199   As a percentage of total net revenues     14.7 %     14.2 %     15.5 %     7.4 %     12.8 % Diluted earnings per share from continuing operations   $ 1.09     $ 1.06     $ 0.80     $ 0.18     $ 0.62   Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis, on an adjusted basis and on an adjusted organic basis, which excludes the operating results from the Helly Hansen acquisition. These adjusted and adjusted organic presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document.   KONTOOR BRANDS, INC. Supplemental Financial Information Disaggregation of Revenue - Continuing Operations (Unaudited)                                 Three Months Ended March 2026     Revenues - As Reported (In thousands)   Wrangler   Helly Hansen   Other   Total Channel revenues                         U.S. Wholesale   $ 339,098   $ 16,840   $ 1,605   $ 357,543 International Wholesale     52,843     100,972     8,265     162,080 Direct-to-Consumer     43,898     47,668     2,133     93,699 Total   $ 435,839   $ 165,480   $ 12,003   $ 613,322                           Geographic revenues                         U.S.   $ 373,749   $ 36,154   $ 1,876   $ 411,779 International     62,090     129,326     10,127     201,543 Total   $ 435,839   $ 165,480   $ 12,003   $ 613,322   Three Months Ended March 2025     Revenues - As Reported (In thousands)   Wrangler   Helly Hansen   Other   Total Channel revenues                         U.S. Wholesale   $ 335,504   $ —   $ 2,609   $ 338,113 International Wholesale     45,225     —     —     45,225 Direct-to-Consumer     39,517     —     146     39,663 Total   $ 420,246   $ —   $ 2,755   $ 423,001                           Geographic revenues                         U.S.   $ 368,302   $ —   $ 2,755   $ 371,057 International     51,944     —     —     51,944 Total   $ 420,246   $ —   $ 2,755   $ 423,001 KONTOOR BRANDS, INC. Supplemental Financial Information Summary of Select Revenue Information - Continuing Operations (Unaudited)       Three Months Ended March             2026   2025   2026 to 2025 (Dollars in thousands)   As Reported under GAAP   % Change
Reported   % Change
Constant
Currency Wrangler U.S.   $ 373,749   $ 368,302   1%   1% Helly Hansen U.S.     36,154     —   *   * Other U.S.     1,876     2,755   (32)%   (32)% Total U.S. revenues   $ 411,779   $ 371,057   11%   11%                   Wrangler International   $ 62,090   $ 51,944   20%   9% Helly Hansen International     129,326     —   *   * Other International     10,127     —   *   * Total International revenues   $ 201,543   $ 51,944   288%   236%                   Global Wrangler   $ 435,839   $ 420,246   4%   2% Global Helly Hansen     165,480     —   *   * Global Other     12,003     2,755   336%   289% Total revenues   $ 613,322   $ 423,001   45%   39% KONTOOR BRANDS, INC. Supplemental Financial Information Revenue from Continuing and Discontinued Operations (Unaudited)     Three Months Ended March   2026   2025         (Dollars in thousands)       Revenue - continuing operations $ 613,322   $ 423,001 Revenue - discontinued operations   194,288     199,900 Total $ 807,610   $ 622,901 KONTOOR BRANDS, INC. Supplemental Financial Information Reconciliation of Adjusted and Adjusted Organic Financial Measures - Notes (Non-GAAP) (Unaudited)   Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures   Management uses non-GAAP financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. In addition, adjusted EBITDA is a key financial measure for the Company's shareholders and financial leaders, as the Company's debt financing agreements require the measurement of adjusted EBITDA, along with other measures, in connection with the Company's compliance with debt covenants. While management believes that these non-GAAP measures are useful in evaluating the business, this information should be considered supplemental in nature and should be viewed in addition to, and not as an alternate for, reported results under GAAP. In addition, these non-GAAP measures may be different from similarly titled measures used by other companies.   (1) During the three months ended March 2026, restructuring and transformation costs included $2.8 million related to the closure of a portion of our manufacturing facilities which was recorded to "cost of goods sold", and $2.9 million related to business optimization activities associated with Project Jeanius recorded to "selling, general and administrative expenses." Total restructuring and transformation costs resulted in a corresponding tax impact of $1.3 million for the three months ended March 2026.   During the three months ended March 2025, restructuring and transformation costs included $11.6 million related to business optimization activities and $0.9 million related to streamlining and transferring select production within our internal manufacturing network. Total restructuring and transformation costs resulted in a corresponding tax impact of $2.9 million for the three months ended March 2025.   (2) In February 2026, the U.S. Supreme Court issued a ruling that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the United States were unauthorized, effectively invalidating IEEPA-based tariffs that had been in effect since the second quarter of 2025. We concluded it is probable that we will recover the IEEPA tariffs previously paid and therefore have recognized a net receivable of $53.7 million as of March 2026. As a result, during the three months ended March 2026, we reduced cost of goods sold by approximately $49.0 million, representing the expense for IEEPA tariffs on inventory previously sold to customers since the time the tariffs were enacted in the second quarter of 2025. Additionally, we reduced inventory by $4.7 million for tariffs that were remaining in inventory costs. The expected refund amount of $21.7 million associated with IEEPA tariffs previously expensed in 2025 has been adjusted from the three months ended March 2026 results, and resulted in a corresponding tax impact of $5.1 million.   (3) During the three months ended March 2026, integration-related costs associated with Helly Hansen included $12.8 million of professional and other fees. Integration-related costs resulted in a corresponding tax impact of $3.0 million for the three months ended March 2026.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260507061035/en/ Investors:
Michael Karapetian, (336) 332-4263
Vice President, Global Brand & Operations Finance and Corporate Investor Relations
Michael.Karapetian@kontoorbrands.com or Media:
Julia Burge, (336) 332-5122
Senior Director, Corporate Communications
Julia.Burge@kontoorbrands.com Original: Kontoor Brands Reports Stronger 2026 First Quarter Results and Raises Full Year Outlook; Announces Planned Divestiture of Lee and $750 Million Share Repurchase Program

Kontoor Brands Declares Quarterly DividendApril 24, 2026 6:50 AM
Business Wire
Kontoor Brands, Inc. (NYSE: KTB) today announced that its Board of Directors has declared a regular quarterly cash dividend of $0.53 per share of its common stock. The cash dividend will be payable on June 18, 2026, to shareholders of record at the close of business June 8, 2026.


About Kontoor Brands


Kontoor Brands, Inc. (NYSE: KTB) is a portfolio of three of the world’s most iconic lifestyle, outdoor and workwear brands: Wrangler®, Lee® and Helly Hansen®. Kontoor Brands is a purpose-led organization focused on leveraging its global platform, strategic sourcing model and best-in-class supply chain to drive brand growth and deliver long-term value for its stakeholders. For more information about Kontoor Brands, please visit www.KontoorBrands.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260424083321/en/
Investors:

Michael Karapetian, (336) 332-4263

Vice President, Global Brand & Operations Finance and Corporate Investor Relations

Michael.Karapetian@kontoorbrands.com


or


Media:

Julia Burge, (336) 332-5122

Senior Director, Corporate Communications

Julia.Burge@kontoorbrands.com


Original: Kontoor Brands Declares Quarterly Dividend

Kontoor Brands Announces First Quarter 2026 Earnings and Conference Call DateApril 16, 2026 6:50 AM
Business Wire
Kontoor Brands, Inc. (NYSE: KTB) today announced plans to release its first quarter 2026 financial results on Thursday, May 7, 2026, at approximately 6:50 a.m. ET.


Following the news release, Kontoor management will host a conference call at approximately 8:30 a.m. ET to review results.


The conference call will be broadcast live and accessible at kontoorbrands.com/investors. For those unable to listen to the live broadcast, an archived version will be available at the same location.


About Kontoor Brands


Kontoor Brands, Inc. (NYSE: KTB) is a portfolio of three of the world’s most iconic lifestyle, outdoor and workwear brands: Wrangler®, Lee® and Helly Hansen®. Kontoor Brands is a purpose-led organization focused on leveraging its global platform, strategic sourcing model and best-in-class supply chain to drive brand growth and deliver long-term value for its stakeholders. For more information about Kontoor Brands, please visit www.KontoorBrands.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260416711586/en/
Investors:

Michael Karapetian, (336) 332-4263

Vice President, Global Brand & Operations Finance and Corporate Investor Relations

Michael.Karapetian@kontoorbrands.com

or

Media:

Julia Burge, (336) 332-5122

Senior Director, Corporate Communications

Julia.Burge@kontoorbrands.com


Original: Kontoor Brands Announces First Quarter 2026 Earnings and Conference Call Date

Kontoor Brands Appoints Erinn Murphy as Vice President, Global Head of Finance and Operations, Helly Hansen and Corporate Investor RelationsApril 9, 2026 6:50 AM
Business Wire
Kontoor Brands, Inc. (NYSE: KTB), today announced that Erinn Murphy will join Kontoor Brands as Vice President, Global Head of Finance and Operations, Helly Hansen and Corporate Investor Relations in early May. Murphy will take an international assignment in Oslo, Norway as a member of the Helly Hansen leadership team as well as oversee corporate investor relations.


“We are thrilled to welcome Erinn Murphy to Kontoor Brands,” said Executive Vice President, Chief Financial Officer & Global Head of Operations, Joe Alkire. “Having led investor relations and corporate strategy from within a high-growth consumer brand and nearly twenty years of experience covering global lifestyle brands as a respected senior equity analyst, she understands what drives long-term value creation from every angle. Her perspective will expand the operational and strategic depth of the Helly Hansen leadership team as we focus on accelerating growth and expanding the brand's global reach, while also strengthening how Kontoor engages with the investment community.”


Murphy joins Kontoor from Crocs, Inc., a global leader in innovative casual footwear, where she served as Senior Vice President, Investor Relations and Corporate Strategy. Prior to that, she served as Managing Director of Consumer Equity Capital Markets for leading investment bank, Piper Sandler. She was recently appointed as a member of the board of directors for Revolve Group, Inc. (NYSE: RVLV).


Murphy's appointment coincides with an expanded role for Michael Karapetian, who will serve as Vice President, Global Brand & Operations Finance and Corporate Investor Relations, with responsibility for all aspects of global brand and supply chain finance and corporate investor relations. Karapetian will return from his international assignment at Helly Hansen in the third quarter of 2026 to allow for a transition period.


About Kontoor Brands


Kontoor Brands, Inc. (NYSE: KTB) is a portfolio of three of the world’s most iconic lifestyle, outdoor and workwear brands: Wrangler®, Lee® and Helly Hansen®. Kontoor Brands is a purpose-led organization focused on leveraging its global platform, strategic sourcing model and best-in-class supply chain to drive brand growth and deliver long-term value for its stakeholders. For more information about Kontoor Brands, please visit www.KontoorBrands.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260409345852/en/
Investors:

Michael Karapetian, (336) 332-4263

Vice President, Corporate Development, Strategy, and Investor Relations

Michael.Karapetian@kontoorbrands.com


or


Media:

Julia Burge, (336) 332-5122

Senior Director, Corporate Communications

Julia.Burge@kontoorbrands.com


Original: Kontoor Brands Appoints Erinn Murphy as Vice President, Global Head of Finance and Operations, Helly Hansen and Corporate Investor Relations

Kontoor Brands Announces Expanded Global Leadership Role for Joseph AlkireApril 8, 2026 6:50 AM
Business Wire
Kontoor Brands, Inc. (NYSE: KTB), today announced that Joseph Alkire will assume an expanded role on Kontoor’s Executive Leadership Team, effective immediately. In addition to his responsibilities as Chief Financial Officer and Global Head of Operations, Alkire will assume global responsibilities for the Helly Hansen brand.


“Joe has been my strategic partner since the early stages of the acquisition, leveraging our collective experience in the outdoor category to shape the role Helly Hansen will play in Kontoor's next phase of growth," said Scott Baxter, President, Chief Executive Officer and Chairman of the Board of Directors. "There is no one better positioned to guide the Helly Hansen brand forward as we focus on creating broad-based momentum, positioning the brand to deliver strong revenue and profit growth over time.”


“Under Børre Hegbom's leadership as SVP and Global Head of Helly Hansen, the team has built tremendous momentum,” said Joseph Alkire, Chief Financial Officer and Global Head of Operations, Kontoor Brands. “I look forward to partnering closely with him and the entire team to ensure the brand has the resources, operational support and strategic focus it needs to accelerate growth and profitability. Together, we are focused on expanding our reach and leadership position in the global outdoor and workwear categories.”


About Kontoor Brands


Kontoor Brands, Inc. (NYSE: KTB) is a portfolio of three of the world’s most iconic lifestyle, outdoor and workwear brands: Wrangler®, Lee® and Helly Hansen®. Kontoor Brands is a purpose-led organization focused on leveraging its global platform, strategic sourcing model and best-in-class supply chain to drive brand growth and deliver long-term value for its stakeholders. For more information about Kontoor Brands, please visit www.KontoorBrands.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260408757312/en/
Investors:

Michael Karapetian, (336) 332-4263

Vice President, Corporate Development, Strategy, and Investor Relations

Michael.Karapetian@kontoorbrands.com


or


Media:

Julia Burge, (336) 332-5122

Senior Director, Corporate Communications

Julia.Burge@kontoorbrands.com


Original: Kontoor Brands Announces Expanded Global Leadership Role for Joseph Alkire

J.Crew and Lee® Announce First-Ever Collaboration Rooted in American Denim HeritageMarch 19, 2026 9:26 AM
Business Wire
Two American icons unite to reimagine heritage denim through a modern prep lens


Two legends of American style come together for the very first time. J.Crew and Lee®, the iconic heritage denim brand founded in 1889, introduce an exclusive collaboration that reimagines Lee’s most historic denim styles through the lens of J.Crew’s prep heritage.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260318923310/en/J.Crew and Lee® introduce an exclusive collaboration that reimagines Lee’s most historic denim styles through the lens of J.Crew’s prep heritage.
The Lee X J.Crew capsule collection brings together two distinct points of view with one shared story in denim. Drawing from Lee’s legacy of timeless style and J.Crew’s East Coast sensibility, the collection offers a modern take on American classics across women’s, men’s, and kids’ categories.


“This collaboration felt incredibly natural,” said Olympia Gayot, Creative Director of J.Crew Women’s & Kids. “Lee represents an essential part of American denim heritage. At J.Crew, my goal was to honor that legacy while refining it through our lens — polished but relaxed, thoughtful but unfussy. We focused on pieces that feel authentic and enduring, the kind of wardrobe staples you reach for instinctively and keep for years. It’s about respecting heritage while making it feel relevant now.”


The collection reinterprets iconic Lee silhouettes, including the Storm Rider™ jacket, western shirts, straight-leg jeans, skirts, and overalls. Each piece is crafted from premium materials such as Japanese selvedge denim sourced from renowned mills like Kaihara and Kurabo, with details including custom hardware, embossed brass finishes, and vintage-inspired labels referencing early 1970s Lee imagery. Thoughtful fabrications, from garment-dyed cottons to perfect-rib knits to a J.Crew plaid created for the Storm Rider jacket, ensure every style feels both authentic and modern.


”This will be the first collaboration available on Lee.com that encompasses men, women and kids’ apparel, and we couldn’t have a better partner than J. Crew,” said Joe Broyles, Vice President of Collaborations at Lee. “They are a master at product storytelling, and we’re thrilled with the outcome. This capsule amplifies Lee’s new global ‘Built Like Lee’ platform – highlighting how we’re showing up in new ways for today’s consumer.”


Designed to evolve with wear, the collection reflects the enduring appeal of American style that gets better over time.


A Narrative Celebration


Drawing inspiration directly from Lee’s rich advertising archives, the creative teams tapped into the shared visual history of both brands, reworking the language of classic Americana, prep, and denim through a fresh, contemporary lens. The campaign imagery and collection design pay homage to Lee’s vintage ads while introducing a renewed sense of optimism and effortless style. Grounded in heritage yet designed for today, the collaboration reflects a thoughtful evolution rather than a reinvention.


The collaboration was celebrated with a brand experience in Los Angeles alongside friends of the brand.


Collection Availability


The Lee® X J.Crew collection will launch online on March 19th at jcrew.com and lee.com and will be available in select J.Crew stores. Prices range from $45 to $268.


Two American icons. Two distinct perspectives. One shared story told in denim.


About J.Crew


Founded in 1983, J.Crew is an iconic American brand and internationally recognized omnichannel retailer known for its timeless style, quality craftsmanship, and fresh approach to classic design. With a deep connection to personal style and self-expression, J.Crew offers thoughtfully designed women’s, men’s, and kids’ collections that blend heritage with a point of view that feels relevant today.


J.Crew serves as a destination for everyday essentials and statement pieces alike, creating clothing that fits seamlessly into real life, from work to weekend, city to coast. Through compelling storytelling, meaningful partnerships, and a commitment to quality, the brand continues to evolve while staying true to its American roots.


As of March 9, 2026, J.Crew operates 114 retail stores across the United States and maintains a robust e-commerce presence, serving customers globally. For more information, visit jcrew.com.


About Lee


Lee®, a Kontoor Brands (NYSE: KTB) brand, is an iconic American brand that’s been designing to a higher standard for 135 years. From its foundation of iconic denim and workwear, Lee has built a global following with products sold in more than 100 countries and 900+ branded retail locations. The brand’s attention to trend-right and timeless styles and balance between denim and casual apparel appeals to male and female customers. Meanwhile, Lee’s integration in pop culture with global collaborations, expanded lifestyle offerings and ‘Built Like Lee’ platform is attracting a new generation of fans worldwide. For more information, visit www.lee.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260318923310/en/
For media enquiries:

lee@scenariopr.com

j.crew@karlaotto.com


Original: J.Crew and Lee® Announce First-Ever Collaboration Rooted in American Denim Heritage

Kontoor Brands Tops Q4 Forecasts on Helly Hansen BoostMarch 3, 2026 9:34 AM
IH Market News
Kontoor Brands Inc. (NYSE:KTB) posted stronger-than-expected fourth-quarter results on Tuesday, with adjusted earnings and revenue both beating Wall Street projections, helped significantly by the addition of Helly Hansen.Adjusted earnings per share came in at $1.73, topping the consensus estimate of $1.65 by $0.08. Revenue rose to $1.02 billion, ahead of analyst expectations of $975.09 million and up 46% from the same period a year earlier.Shares gained 1.67% in premarket trading following the earnings announcement.The sharp increase in sales was largely fueled by the Helly Hansen acquisition, which accounted for 36 percentage points of the overall growth. Stripping out the impact of Helly Hansen and the benefit of a 53rd trading week, revenue advanced 2% year over year.By brand, Wrangler delivered a 12% increase in revenue to $562 million, while Lee posted a 2% rise to $198 million. Helly Hansen generated $254 million in quarterly sales.Profitability also improved. Adjusted gross margin expanded by 210 basis points to 46.8%, including a 180-basis-point contribution from Helly Hansen. Adjusted operating income climbed 48% to $150 million, or 14.8% of revenue, marking a 30-basis-point improvement from a year earlier.“We had a strong finish to the year driven by better-than-expected revenue, earnings and cash generation,” said Scott Baxter, President, CEO and Chairman. “2025 was a transformational year for Kontoor, highlighted by the acquisition of Helly Hansen, strong growth in Wrangler and disciplined execution.”Looking ahead to fiscal 2026, Kontoor issued guidance that exceeded earnings expectations. The company forecasts adjusted EPS of $6.40 to $6.50, with a midpoint of $6.45 well above the analyst consensus of $5.96. Revenue is projected between $3.40 billion and $3.45 billion, with the midpoint of $3.425 billion slightly below the $3.45 billion consensus estimate.The outlook reflects the anticipated impact of higher tariffs on sourcing countries, with the exception of Mexico, which remains exempt under the USMCA trade agreement. For fiscal 2026, Kontoor expects adjusted gross margin in the range of 47.2% to 47.4% and adjusted operating income of $506 million to $512 million.Kontoor Brands stock price

Original: Kontoor Brands Tops Q4 Forecasts on Helly Hansen Boost

Kontoor Brands Reports 2025 Fourth Quarter and Full Year Results; Provides Initial 2026 OutlookMarch 3, 2026 6:50 AM
Business Wire
Fourth Quarter 2025 Highlights



Revenue of $1.02 billion increased 46 percent compared to prior year



Reported gross margin was 46.2 percent. Adjusted gross margin of 46.8 percent increased 210 basis points compared to prior year



Reported operating income was $121 million. Adjusted operating income of $150 million increased 48 percent compared to prior year. Adjusted operating income includes $8 million of incremental demand creation and brand investments relative to the Company’s prior outlook



Reported EPS was $1.31. Adjusted EPS of $1.73 increased 26 percent compared to prior year. Adjusted EPS includes $0.10 of incremental demand creation and brand investments relative to the Company’s prior outlook



Inventory of $567 million decreased $198 million from the third quarter, representing a 26 percent decrease from the third quarter



The Company made a $200 million voluntary term loan payment



The Company repurchased $25 million of shares



As previously announced, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.53 per share



Full Year 2026 Outlook



Revenue expected to be in the range of $3.40 to $3.45 billion, representing an increase of approximately 9 percent compared to prior year



Adjusted gross margin expected to be in the range of 47.2 percent to 47.4 percent, representing an increase of 60 to 80 basis points compared to prior year



Adjusted operating income expected to be in the range of $506 million to $512 million, representing an increase of 8 percent to 9 percent compared to prior year



Adjusted EPS expected to be in the range of $6.40 to $6.50, representing an increase of 15 percent to 16 percent compared to prior year



Cash from operations expected to be approximately $425 million



The Company expects to make voluntary term loan payments of $225 million and to achieve a net leverage ratio below 1.5 times by year-end



The Company’s outlook includes the impact from increases in tariffs on all countries from which the Company sources product with the exception of Mexico, which is exempt under USMCA. The Company is evaluating the impact of the recent U.S. Supreme Court ruling on tariffs and trade agreement with Bangladesh. The Company utilizes U.S.-grown cotton in more than 80 percent of products sourced from Bangladesh which may qualify for a duty exemption under the trade agreement



Kontoor Brands, Inc. (NYSE: KTB) today reported financial results for its fourth quarter and full year ended January 3, 2026.


“We had a strong finish to the year driven by better-than-expected revenue, earnings and cash generation,” said Scott Baxter, President, Chief Executive Officer and Chairman of the Board of Directors. “2025 was a transformational year for Kontoor, highlighted by the acquisition of Helly Hansen, strong growth in Wrangler and disciplined execution.”


“Our results highlight the strength and resiliency of our expanded brand portfolio as well as the impact from our transformation initiatives,” added Baxter. “Supported by record cash generation, including a $100 million contribution from Helly Hansen, we are ahead of our planned deleverage path, allowing us to capitalize on opportunistic share repurchases in the fourth quarter. I want to thank our colleagues around the globe for positioning us to deliver strong returns for our shareholders in the years ahead.”


Fourth Quarter 2025 Income Statement Review


Revenue was $1.02 billion and increased 46 percent compared to prior year, including a 36 percentage point benefit from the acquisition of Helly Hansen. Excluding the revenue contribution from Helly Hansen and the 53rd week of 2025, revenue increased 2 percent.


Wrangler brand global revenue was $562 million and increased 12 percent compared to prior year. Revenue growth benefitted by approximately 8 percentage points from the 53rd week. Wrangler U.S. revenue increased 12 percent, driven by a 16 percent increase in direct-to-consumer and an 11 percent increase in wholesale. Wrangler international revenue increased 10 percent compared to prior year, driven by a 35 percent increase in direct-to-consumer and a 6 percent increase in wholesale.


Lee brand global revenue was $198 million and increased 2 percent compared to prior year. Revenue growth benefitted by approximately 6 percentage points from the 53rd week. Lee U.S. revenue increased 9 percent driven by a 9 percent increase in wholesale and an 8 percent increase in direct-to-consumer. Lee international revenue decreased 6 percent driven by a decline in wholesale partially offset by an increase in direct-to-consumer.


Helly Hansen global revenue was $254 million. Revenue benefitted by approximately $3 million from the 53rd week. Sport and Workwear revenue was $194 million and $54 million, respectively. Musto brand revenue was $7 million. U.S. revenue was $68 million and international revenue was $186 million.


Gross margin increased 250 basis points to 46.2 percent on a reported basis and increased 210 basis points to 46.8 percent on an adjusted basis compared to prior year, including a 180 basis point benefit from the acquisition of Helly Hansen. Excluding Helly Hansen, adjusted gross margin increased 30 basis points driven by the benefits from Project Jeanius, and channel and product mix, partially offset by increased product costs and the impact from previously enacted increases in tariffs, net of pricing actions.


Selling, General & Administrative (SG&A) expenses were $350 million, or 34.3 percent of revenue on a reported basis. On an adjusted basis, SG&A expenses were $326 million, or 32.0 percent of revenue. Excluding Helly Hansen, adjusted SG&A expenses were $234 million representing an increase of 11 percent driven primarily by an increase in demand creation investments and volume-based variable expenses, including the impact of the 53rd week, partially offset by the benefits from Project Jeanius.


Operating income was $121 million on a reported basis. On an adjusted basis, operating income was $150 million and increased 48 percent compared to prior year. Adjusted operating income includes $8 million of incremental demand creation and brand investments relative to the Company’s prior outlook. Adjusted operating margin of 14.8 percent increased 30 basis points compared to prior year. Excluding Helly Hansen, adjusted operating income was $110 million and increased 9 percent compared to prior year.


Earnings per share (EPS) was $1.31 on a reported basis. On an adjusted basis, EPS was $1.73, representing an increase of 26 percent, including a $0.44 contribution from Helly Hansen. Adjusted EPS includes $0.10 of incremental demand creation and brand investments relative to the Company’s prior outlook.


Full Year 2025 Income Statement Review


Revenue was $3.15 billion and increased 21 percent compared to prior year, including an 18 percentage point benefit from the acquisition of Helly Hansen. Excluding the revenue contribution from Helly Hansen and the 53rd week, revenue increased 1 percent.


Wrangler brand global revenue was $1.91 billion and increased 6 percent compared to prior year. Revenue growth benefitted by approximately 2 percentage points from the 53rd week. Wrangler U.S. revenue increased 6 percent, driven by a 14 percent increase in direct-to-consumer and a 6 percent increase in wholesale. Wrangler international revenue increased 3 percent compared to prior year, driven by a 10 percent increase in direct-to-consumer and a 2 percent increase in wholesale.


Lee brand global revenue was $750 million and decreased 5 percent compared to prior year. Revenue growth benefitted by approximately 1 percentage point from the 53rd week. Lee U.S. revenue decreased 4 percent driven by a 5 percent decrease in wholesale partially offset by a 5 percent increase in direct-to-consumer. Lee international revenue decreased 7 percent driven by a decline in wholesale partially offset by an increase in direct-to-consumer.


Helly Hansen global revenue was $475 million for the June through December period. Revenue benefitted by approximately $3 million from the 53rd week. Sport and Workwear revenue was $354 million and $105 million, respectively. Musto brand revenue was $16 million. U.S. revenue was $113 million and international revenue was $362 million.


Gross margin increased 70 basis points to 45.2 percent on a reported basis and increased 150 basis points to 46.6 percent on an adjusted basis compared to prior year, including a 40 basis point benefit from the acquisition of Helly Hansen. Excluding Helly Hansen, adjusted gross margin increased 110 basis points driven by the benefits from Project Jeanius, and channel and product mix, partially offset by increased product costs and the impact from previously enacted increases in tariffs, net of pricing actions.


Selling, General & Administrative (SG&A) expenses were $1.09 billion, or 34.5 percent of revenue on a reported basis. On an adjusted basis, SG&A expenses were $1.00 billion, or 31.8 percent of revenue. Excluding Helly Hansen, adjusted SG&A expenses were $815 million representing an increase of 2 percent driven by an increase in demand creation investments and volume-based variable expenses, including the impact of the 53rd week, partially offset by the benefits from Project Jeanius.


Operating income was $337 million on a reported basis. On an adjusted basis, operating income was $468 million and increased 23 percent compared to prior year. Adjusted operating margin of 14.9 percent increased 30 basis points compared to prior year. Excluding Helly Hansen, adjusted operating income was $423 million and increased 11 percent compared to prior year, resulting in a 120 basis point increase in adjusted operating margin to 15.8 percent of revenue.


Earnings per share (EPS) was $4.05 on a reported basis. On an adjusted basis, EPS was $5.59, representing an increase of 14 percent, including a $0.35 contribution from Helly Hansen.


Balance Sheet and Liquidity Review


The Company ended the fourth quarter with $108 million in cash and cash equivalents, and $1.13 billion in long-term debt. During the quarter, the Company made a $200 million voluntary term loan payment.


At the end of the fourth quarter, the Company had no outstanding borrowings under the Revolving Credit Facility and $493 million available for borrowing against this facility. At the end of the fourth quarter, the Company’s pro-forma net leverage ratio was 2.0 times.


Inventory at the end of the fourth quarter was $567 million, including inventory from the acquisition of Helly Hansen. Total inventory at the end of the fourth quarter decreased $198 million on a sequential basis from the third quarter.


As previously announced, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.53 per share, payable on March 20, 2026, to shareholders of record at the close of business on March 10, 2026.


The Company returned $54 million to shareholders through dividends and share repurchases during the fourth quarter, including the repurchase of $25 million of common stock. For the full year, the Company returned approximately $140 million to shareholders through dividends and share repurchases. The Company has $190 million remaining under its authorized share repurchase program.


Full Year 2026 Outlook


The Company’s outlook includes the impact from increases in tariffs on all countries from which the Company sources product, with the exception of Mexico. Based on currently available information, the Company’s imports from Mexico to the U.S. remain exempt under USMCA.


The Company’s outlook assumes a 15 percent reciprocal tariff rate on applicable inventory receipts effective February 24, 2026. The Company’s outlook assumes at least a 20 percent reciprocal tariff rate on applicable inventory owned prior to February 24, 2026.


The Company is evaluating the impact of the recent U.S. Supreme Court ruling on tariffs and trade agreement with Bangladesh. The Company utilizes U.S.-grown cotton in more than 80 percent of products sourced from Bangladesh which may qualify for a duty exemption under the trade agreement.


“We are entering 2026 from a position of strength, with sharp strategic clarity and a relentless focus on execution,” said Scott Baxter, President, Chief Executive Officer and Chairman of the Board of Directors. “We have the team and platforms in place to drive another year of record revenue and earnings, cash generation, and investment behind our brands. The strength and resiliency of our model provides significant capital allocation optionality to deliver superior returns for our shareholders.”


The Company’s outlook includes the full year expected contribution from Helly Hansen as well as the impact from increases in tariffs. The Helly Hansen business exhibits revenue and earnings seasonality, specifically in the second quarter, Helly Hansen’s smallest revenue quarter of the year. Further, the Company expects the negative impact from tariffs to be larger in the first half of the year due to the timing of inventory flows at higher costs and other mitigating actions, including the expected benefits from Project Jeanius.


The Company’s full year 2026 outlook includes the following assumptions:



Revenue is expected to be in the range of $3.40 to $3.45 billion, representing growth of approximately 9 percent compared to prior year, including an approximate 2 percent impact from the 53rd week in the prior year.
For the first half of 2026, revenue is expected to be in the range of $1.56 to $1.57 billion, reflecting growth of between 22 and 23 percent compared to prior year, including the contribution from Helly Hansen.




Adjusted gross margin is expected to be in the range of 47.2 percent to 47.4 percent, representing an increase of 60 to 80 basis points compared to prior year. The benefits from Project Jeanius, channel and product mix, and the contribution from Helly Hansen are expected to offset the impact from increases in tariffs, net of pricing actions.
For the first half of 2026, adjusted gross margin is expected to be in the range of 47.1 percent to 47.3 percent.




Adjusted SG&A expenses are expected to increase approximately 12 percent compared to prior year. Excluding Helly Hansen, SG&A expenses are expected to be consistent with prior year, including an increase in investment in demand creation and other strategic growth initiatives, offset by disciplined expense management, Project Jeanius and the impact of the 53rd week in prior year.
For the first half of 2026, SG&A is expected to increase approximately 33 percent, primarily reflecting the impact of Helly Hansen.




Adjusted operating income is expected to be in the range of $506 to $512 million, representing an increase of 8 percent to 9 percent compared to prior year, including the impact from increases in tariffs.
For the first half of 2026, adjusted operating income is expected to be in the range of $195 to $198 million.




Adjusted EPS is expected to be in the range of $6.40 to $6.50, representing an increase of 15 percent to 16 percent compared to prior year, including the impact from increases in tariffs.
For the first half of 2026, adjusted EPS is expected in the range of $2.25 to $2.30.




Capital expenditures are expected to be approximately $45 million.




The Company expects an effective tax rate of approximately 20 percent on adjusted earnings, including the benefit of synergies from Helly Hansen. For the first half of 2026, the Company expects an effective tax rate of approximately 23 percent.




Interest expense is expected to be approximately $55 million. Other expense is expected to be approximately $15 million. Average shares outstanding are expected to be approximately 56 million. There are no share repurchases contemplated in the Company’s outlook.




The Company expects cash from operations of approximately $425 million.




The Company expects to make voluntary term loan payments of $225 million, and to achieve a net leverage ratio below 1.5 times by year-end.



Webcast Information


Kontoor Brands will host its fourth quarter and full year 2025 conference call beginning at 8:30 a.m. Eastern Time today, March 3, 2026. The conference will be broadcast live via the Internet, accessible at https://www.kontoorbrands.com/investors. For those unable to listen to the live broadcast, an archived version will be available at the same location.


Non-GAAP Financial Measures


This release refers to “adjusted”, “organic” and “constant currency” amounts from 2025 and 2024, which are further described in the sections below. All per share amounts are presented on a diluted basis. Amounts as presented herein may not recalculate due to the use of unrounded numbers.


Adjusted Amounts - This release refers to “adjusted” amounts. Adjustments during 2025 represent (i) charges related to the closure of a portion of our manufacturing facilities and (ii) business optimization activities associated with the continued execution of Project Jeanius. Adjustments during 2024 represent restructuring and transformation costs related to business optimization activities associated with Project Jeanius and actions to streamline and transfer select production within our internal manufacturing network. Additional information regarding adjusted amounts is provided in notes to the supplemental financial information included with this release.


Organic Amounts - This release refers to “organic” amounts, which represent operating results excluding contributions from the Helly Hansen® and Musto® brands.


Constant Currency - This release refers to “reported” amounts in accordance with GAAP, which include translation and transactional impacts from changes in foreign currency exchange rates. This release also refers to “constant currency” amounts, which exclude the translation impact of changes in foreign currency exchange rates.


Reconciliations of these non-GAAP measures to the most comparable GAAP measures are presented in the supplemental financial information included with this release that identifies and quantifies all reconciling adjustments and provides management's view of why this non-GAAP information is useful to investors. While management believes that these non-GAAP measures are useful in evaluating the business, this information should be viewed in addition to, and not as an alternate for, reported results under GAAP. The non-GAAP measures used by the Company in this release may be different from similarly titled measures used by other companies.


For forward-looking non-GAAP measures included in this filing, the Company does not provide a reconciliation to the most comparable GAAP financial measures because the information needed to reconcile these measures is unavailable due to the inherent difficulty of forecasting the timing and/or amount of various items that have not yet occurred and have been excluded from adjusted measures. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with the Company’s accounting policies for future periods requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort.


About Kontoor Brands


Kontoor Brands, Inc. (NYSE: KTB) is a portfolio of three of the world’s most iconic lifestyle, outdoor and workwear brands: Wrangler®, Lee® and Helly Hansen®. Kontoor Brands is a purpose-led organization focused on leveraging its global platform, strategic sourcing model and best-in-class supply chain to drive brand growth and deliver long-term value for its stakeholders. For more information about Kontoor Brands, please visit www.KontoorBrands.com.


Forward-Looking Statements


Certain statements included in this release and attachments are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “should,” “may” and other words and terms of similar meaning or use of future dates. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as required under the U.S. federal securities laws. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to: macroeconomic conditions, including inconsistent consumer demand despite recent declines in interest rates, fluctuating foreign currency exchange rates, moderating inflation and global supply chain issues, as well as the ongoing impact of tariffs and uncertainty regarding the outcome of trade negotiations, import/export regulations and tariff policies, continue to adversely impact global economic conditions and have had, and may continue to have, a negative impact on the Company's business, results of operations, financial condition and cash flows (including future uncertain impacts); the level of consumer demand for apparel; reliance on a small number of large customers; potential difficulty in integrating Helly Hansen and/or in achieving the expected growth, cost savings and/or synergies from the acquisition; supply chain and shipping disruptions, which could continue to result in shipping delays, an increase in transportation costs and increased product costs or lost sales; intense industry competition; the ability to accurately forecast demand for products; the Company’s ability to gauge consumer preferences and product trends, and to respond to constantly changing markets; the Company’s ability to maintain the images of its brands; disruption and volatility in the global capital and credit markets and its impact on the Company's ability to obtain short-term or long-term financing on favorable terms; the Company maintaining satisfactory credit ratings; restrictions on the Company’s business relating to its debt obligations; increasing pressure on margins; e-commerce operations through the Company’s direct-to-consumer business; the financial difficulty experienced by the retail industry; possible goodwill and other asset impairment; the ability to implement the Company’s business strategy; the stability of manufacturing facilities and foreign suppliers; fluctuations in wage rates and the price, availability and quality of raw materials and contracted products, including as a result of tariffs and reciprocal tariffs; the reliance on a limited number of suppliers for raw material sourcing and the ability to obtain raw materials on a timely basis or in sufficient quantity or quality; disruption to distribution systems; seasonality; unseasonal or severe weather conditions; potential challenges with the Company’s implementation of Project Jeanius; the Company's and its vendors’ ability to maintain the strength and security of information technology systems; the risk that facilities and systems and those of third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss or maintain operational performance; ability to properly collect, use, manage and secure consumer and employee data; legal, regulatory, political and economic risks; the impact of climate change and related legislative and regulatory responses; stakeholder response to sustainability issues, including those related to climate change; compliance with anti-bribery, anti-corruption and anti-money laundering laws by the Company and third-party suppliers and manufacturers; changes in tax laws and liabilities; the costs of compliance with or the violation of national, state and local laws and regulations for environmental, consumer protection, employment, privacy, safety and other matters; continuity of members of management; labor relations; the ability to protect trademarks and other intellectual property rights; the ability of the Company’s licensees to generate expected sales and maintain the value of the Company’s brands; volatility in the price and trading volume of the Company’s common stock; anti-takeover provisions in the Company’s organizational documents; and fluctuations in the amount and frequency of our share repurchases. Many of the foregoing risks and uncertainties will be exacerbated by any worsening of the global business and economic environment.


More information on potential factors that could affect the Company's financial results are described in detail in the Company’s most recent Annual Report on Form 10-K and in other reports and statements that the Company files with the SEC.




KONTOOR BRANDS, INC.




Condensed Consolidated Statements of Operations




(Unaudited)















 



 






 






Three Months Ended

December






 






%






 






Twelve Months Ended

December






 






%








(Dollars and shares in thousands, except per share amounts)






 






 






2025






 






 






 






2024






 






 






Change






 






 






2025






 






 






 






2024






 






 






Change








Net revenues






 






$






1,018,081






 






 






$






699,284






 






 






46%






 






$






3,152,456






 






 






$






2,607,578






 






 






21%








Costs and operating expenses






 






 






 






 






 






 






 






 






 






 






 






 








Cost of goods sold






 






 






547,326






 






 






 






393,728






 






 






39%






 






 






1,729,067






 






 






 






1,446,008






 






 






20%








Selling, general and administrative expenses






 






 






349,635






 






 






 






221,261






 






 






58%






 






 






1,086,581






 






 






 






819,281






 






 






33%








Total costs and operating expenses






 






 






896,961






 






 






 






614,989






 






 






46%






 






 






2,815,648






 






 






 






2,265,289






 






 






24%








Operating income






 






 






121,120






 






 






 






84,295






 






 






44%






 






 






336,808






 






 






 






342,289






 






 






(2)%








Interest expense






 






 






(19,897






)






 






 






(9,972






)






 






100%






 






 






(62,162






)






 






 






(40,824






)






 






52%








Interest income






 






 






613






 






 






 






3,143






 






 






(80)%






 






 






7,299






 






 






 






11,149






 






 






(35)%








Other (expense) income, net






 






 






(3,536






)






 






 






(1,952






)






 






81%






 






 






11,316






 






 






 






(11,191






)






 






201%








Income before income taxes






 






 






98,300






 






 






 






75,514






 






 






30%






 






 






293,261






 






 






 






301,423






 






 






(3)%








Income taxes






 






 






(28,056






)






 






 






(11,536






)






 






143%






 






 






(71,220






)






 






 






(55,621






)






 






28%








Income from equity method investment






 






 






3,513






 






 






 






—






 






 






*






 






 






5,411






 






 






 






—






 






 






*








Net income






 






$






73,757






 






 






$






63,978






 






 






15%






 






$






227,452






 






 






$






245,802






 






 






(7)%








Earnings per common share






 






 






 






 






 






 






 






 






 






 






 






 








Basic






 






$






1.33






 






 






$






1.16






 






 






 






 






$






4.10






 






 






$






4.42






 






 






 








Diluted






 






$






1.31






 






 






$






1.14






 






 






 






 






$






4.05






 






 






$






4.36






 






 






 








Weighted average shares outstanding






 






 






 






 






 






 






 






 






 






 






 






 








Basic






 






 






55,507






 






 






 






55,232






 






 






 






 






 






55,500






 






 






 






55,549






 






 






 








Diluted






 






 






56,327






 






 






 






56,036






 






 






 






 






 






56,108






 






 






 






56,321






 






 






 








* Calculation not meaningful.















































 



Basis of presentation for all financial tables within this release: The Company operates and reports using a 52/53-week fiscal year ending on the Saturday closest to December 31 each year. For presentation purposes herein, all references to periods ended December 2025 and December 2024 correspond to the 14-week and 53-week fiscal periods ended January 3, 2026 and the 13-week and 52-week fiscal periods ended December 28, 2024, respectively. References to December 2025 and December 2024 relate to the balance sheets as of January 3, 2026 and December 28, 2024, respectively. Amounts herein may not recalculate due to the use of unrounded numbers.









KONTOOR BRANDS, INC.




Condensed Consolidated Balance Sheets




(Unaudited)











 



(In thousands)






 






December 2025






 






December 2024








ASSETS






 






 






 






 








Current assets






 






 






 






 








Cash and cash equivalents






 






$






108,442






 






$






334,066








Accounts receivable, net






 






 






276,424






 






 






243,660








Inventories






 






 






566,682






 






 






390,209








Prepaid expenses and other current assets






 






 






129,568






 






 






96,346








Total current assets






 






 






1,081,116






 






 






1,064,281








Property, plant and equipment, net






 






 






130,728






 






 






103,300








Operating lease assets






 






 






141,579






 






 






47,171








Intangible assets, net






 






 






450,417






 






 






11,232








Goodwill






 






 






531,137






 






 






208,787








Deferred income taxes






 






 






74,515






 






 






76,065








Other assets






 






 






173,180






 






 






139,703








TOTAL ASSETS






 






$






2,582,672






 






$






1,650,539








LIABILITIES AND EQUITY






 






 






 






 








Current liabilities






 






 






 






 








Current portion of long-term debt






 






$






8,750






 






$






—








Accounts payable






 






 






245,114






 






 






179,680








Accrued and other current liabilities






 






 






306,100






 






 






193,335








Operating lease liabilities, current






 






 






33,663






 






 






20,890








Total current liabilities






 






 






593,627






 






 






393,905








Operating lease liabilities, noncurrent






 






 






116,877






 






 






29,955








Deferred income taxes






 






 






93,160






 






 






5,722








Other liabilities






 






 






79,562






 






 






80,587








Long-term debt






 






 






1,134,579






 






 






740,315








Total liabilities






 






 






2,017,805






 






 






1,250,484








Commitments and contingencies






 






 






 






 








Total equity






 






 






564,867






 






 






400,055








TOTAL LIABILITIES AND EQUITY






 






$






2,582,672






 






$






1,650,539









KONTOOR BRANDS, INC.




Condensed Consolidated Statements of Cash Flows




(Unaudited)









 



 






 






Twelve Months Ended December








(In thousands)






 






 






2025






 






 






 






2024






 








OPERATING ACTIVITIES






 






 






 






 








Net income






 






$






227,452






 






 






$






245,802






 








Adjustments to reconcile net income to cash provided by operating activities:






 






 






 






 








Depreciation and amortization






 






 






47,786






 






 






 






42,635






 








Stock-based compensation






 






 






39,077






 






 






 






26,585






 








Other, including working capital changes, net of business acquisition effects






 






 






141,494






 






 






 






53,208






 








Cash provided by operating activities






 






 






455,809






 






 






 






368,230






 








INVESTING ACTIVITIES






 






 






 






 








Property, plant and equipment expenditures






 






 






(21,047






)






 






 






(18,788






)








Capitalized computer software






 






 






(4,111






)






 






 






(3,334






)








Business acquisition, net of cash received






 






 






(901,223






)






 






 






—






 








Proceeds from the settlement of foreign exchange contracts to hedge business acquisition






 






 






24,115






 






 






 






—






 








Other






 






 






3,502






 






 






 






(138






)








Cash used by investing activities






 






 






(898,764






)






 






 






(22,260






)








FINANCING ACTIVITIES






 






 






 






 








Borrowings under revolving credit facility






 






 






50,000






 






 






 






—






 








Repayments under revolving credit facility






 






 






(50,000






)






 






 






—






 








Proceeds from issuance of long-term debt






 






 






1,000,000






 






 






 






—






 








Payment of debt issuance costs






 






 






(7,433






)






 






 






—






 








Repayments of term loan






 






 






(595,000






)






 






 






(45,000






)








Repurchases of Common Stock






 






 






(25,000






)






 






 






(85,677






)








Dividends paid






 






 






(116,085






)






 






 






(112,060






)








Shares withheld for taxes, net of proceeds from issuance of Common Stock






 






 






(9,683






)






 






 






2,382






 








Cash provided (used) by financing activities






 






 






246,799






 






 






 






(240,355






)








Effect of foreign currency rate changes on cash and cash equivalents






 






 






(29,468






)






 






 






13,401






 








Net change in cash and cash equivalents






 






 






(225,624






)






 






 






119,016






 








Cash and cash equivalents – beginning of period






 






 






334,066






 






 






 






215,050






 








Cash and cash equivalents – end of period






 






$






108,442






 






 






$






334,066






 









KONTOOR BRANDS, INC.




Supplemental Financial Information




Business Segment Information




(Unaudited)













 



 






 






Three Months Ended December






 






% Change






 






% Change

Constant

Currency (a)








(Dollars in thousands)






 






 






2025






 






 






 






2024






 






 






 








Segment revenues:






 






 






 






 






 






 






 






 








Wrangler






 






$






561,866






 






 






$






503,143






 






 






12%






 






11%








Lee






 






 






198,098






 






 






 






193,540






 






 






2%






 






—%








Helly Hansen






 






 






247,113






 






 






 






—






 






 






*






 






*








Total reportable segment revenues






 






 






1,007,077






 






 






 






696,683






 






 






45%






 






43%








Other revenues (b)






 






 






11,004






 






 






 






2,601






 






 






323%






 






323%








Total net revenues






 






$






1,018,081






 






 






$






699,284






 






 






46%






 






44%








Segment profit (loss):






 






 






 






 






 






 






 






 








Wrangler






 






$






128,618






 






 






$






105,551






 






 






22%






 






 








Lee






 






 






7,366






 






 






 






17,846






 






 






(59)%






 






 








Helly Hansen






 






 






28,598






 






 






 






—






 






 






*






 






 








Reconciliation to income before income taxes:






 






 






 






 






 






 






 






 








Corporate and other expenses






 






 






(53,633






)






 






 






(40,495






)






 






32%






 






 








Interest expense






 






 






(19,897






)






 






 






(9,972






)






 






100%






 






 








Interest income






 






 






613






 






 






 






3,143






 






 






(80)%






 






 








Profit (loss) related to other revenues (b)






 






 






6,635






 






 






 






(559






)






 






*






 






 








Income before income taxes






 






$






98,300






 






 






$






75,514






 






 






30%






 






 








 






 






 






 






 






 






 






 






 








 






 






Twelve Months Ended December






 






% Change






 






% Change

Constant

Currency (a)








(Dollars in thousands)






 






 






2025






 






 






 






2024






 






 






 








Segment revenues:






 






 






 






 






 






 






 






 








Wrangler






 






$






1,914,622






 






 






$






1,805,989






 






 






6%






 






6%








Lee






 






 






750,368






 






 






 






790,625






 






 






(5)%






 






(6)%








Helly Hansen






 






 






459,716






 






 






 






—






 






 






*






 






*








Total reportable segment revenues






 






 






3,124,706






 






 






 






2,596,614






 






 






20%






 






20%








Other revenues (b)






 






 






27,750






 






 






 






10,964






 






 






153%






 






153%








Total net revenues






 






$






3,152,456






 






 






$






2,607,578






 






 






21%






 






21%








Segment profit (loss):






 






 






 






 






 






 






 






 








Wrangler






 






$






439,970






 






 






$






366,309






 






 






20%






 






 








Lee






 






 






68,941






 






 






 






89,662






 






 






(23)%






 






 








Helly Hansen






 






 






31,795






 






 






 






—






 






 






*






 






 








Reconciliation to income before income taxes:






 






 






 






 






 






 






 






 








Corporate and other expenses






 






 






(196,390






)






 






 






(123,240






)






 






59%






 






 








Interest expense






 






 






(62,162






)






 






 






(40,824






)






 






52%






 






 








Interest income






 






 






7,299






 






 






 






11,149






 






 






(35)%






 






 








Profit (loss) related to other revenues (b)






 






 






3,808






 






 






 






(1,633






)






 






333%






 






 








Income before income taxes






 






$






293,261






 






 






$






301,423






 






 






(3)%






 






 



















 



(a) Refer to constant currency definition on the following pages.




(b) We report an “Other” category to reconcile segment revenues to total net revenues and segment profit to income before income taxes, but the Other category does not meet the criteria to be considered a reportable segment. Other includes sales and licensing of the Musto®, Chic® and Rock & Republic® brands, as well as other company-owned brands and private label apparel, and the associated costs.




* Calculation not meaningful.









KONTOOR BRANDS, INC.




Supplemental Financial Information




Business Segment Information – Constant Currency Basis (Non-GAAP)




(Unaudited)









 



 






 






Three Months Ended December 2025








 






 






As Reported






 






Adjust for Foreign






 






 








(In thousands)






 






under GAAP






 






Currency Exchange






 






Constant Currency








Segment revenues:






 






 






 






 






 






 








Wrangler






 






$






561,866






 






$






(3,215






)






 






$






558,651








Lee






 






 






198,098






 






 






(4,404






)






 






 






193,694








Helly Hansen






 






 






247,113






 






 






—






 






 






 






247,113








Total reportable segment revenues






 






 






1,007,077






 






 






(7,619






)






 






 






999,458








Other revenues






 






 






11,004






 






 






—






 






 






 






11,004








Total net revenues






 






$






1,018,081






 






$






(7,619






)






 






$






1,010,462








 






 






 






 






 






 






 








 






 






Twelve Months Ended December 2025








 






 






As Reported






 






Adjust for Foreign






 






 








(In thousands)






 






under GAAP






 






Currency Exchange






 






Constant Currency








Segment revenues:






 






 






 






 






 






 








Wrangler






 






$






1,914,622






 






$






(3,683






)






 






$






1,910,939








Lee






 






 






750,368






 






 






(4,444






)






 






 






745,924








Helly Hansen






 






 






459,716






 






 






—






 






 






 






459,716








Total reportable segment revenues






 






 






3,124,706






 






 






(8,127






)






 






 






3,116,579








Other revenues






 






 






27,750






 






 






—






 






 






 






27,750








Total net revenues






 






$






3,152,456






 






$






(8,127






)






 






$






3,144,329









Constant Currency Financial Information








 








The Company is a global company that reports financial information in U.S. dollars in accordance with GAAP. Foreign currency exchange rate fluctuations affect the amounts reported by the Company from translating its foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results. As a supplement to our reported operating results, we present constant currency financial information, which is a non-GAAP financial measure that excludes the impact of translating foreign currencies into U.S. dollars. We use constant currency information to provide a framework to assess how our business performed excluding the effects of changes in the rates used to calculate foreign currency translation. Management believes this information is useful to investors to facilitate comparison of operating results and better identify trends in our businesses.








 








To calculate foreign currency translation on a constant currency basis, operating results for the current year period for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year (rather than the actual exchange rates in effect during the current year period).








 








These constant currency performance measures should be viewed in addition to, and not as an alternative for, reported results under GAAP. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.









KONTOOR BRANDS, INC.




Supplemental Financial Information




Reconciliation of Adjusted and Adjusted Organic Financial Measures - Quarter-to-Date (Non-GAAP)




(Unaudited)








 



 






Three Months Ended December








(Dollars in thousands, except per share amounts)






 






2025






 






 






 






2024






 








 






 






 






 








Net revenues - as reported under GAAP






$






1,018,081






 






 






$






699,284






 








Contribution from Helly Hansen (a)






 






253,617






 






 






 






—






 








Organic net revenues






$






764,464






 






 






$






699,284






 








 






 






 






 








 






 






 






 








Cost of goods sold - as reported under GAAP






$






547,326






 






 






$






393,728






 








Restructuring and transformation costs (b)






 






(5,645






)






 






 






(7,184






)








Adjusted cost of goods sold






 






541,681






 






 






 






386,544






 








Contribution from Helly Hansen (a)






 






121,142






 






 






 






—






 








Adjusted organic cost of goods sold






$






420,539






 






 






$






386,544






 








 






 






 






 








 






 






 






 








Selling, general and administrative expenses - as reported under GAAP






$






349,635






 






 






$






221,261






 








Restructuring and transformation costs (b)






 






(9,041






)






 






 






(9,857






)








Acquisition and integration-related costs (c)






 






(14,470






)






 






 






—






 








Adjusted selling, general and administrative expenses






 






326,124






 






 






 






211,404






 








Contribution from Helly Hansen (a)






 






92,403






 






 






 






—






 








Adjusted organic selling, general and administrative expenses






$






233,721






 






 






$






211,404






 








 






 






 






 








 






 






 






 








Diluted earnings per share - as reported under GAAP






$






1.31






 






 






$






1.14






 








Restructuring and transformation costs (b)






 






0.21






 






 






 






0.24






 








Acquisition and integration-related costs (c)






 






0.21






 






 






 






—






 








Adjusted diluted earnings per share






 






1.73






 






 






 






1.38






 








Contribution from Helly Hansen (a)






 






0.44






 






 






 






—






 








Adjusted organic diluted earnings per share






$






1.29






 






 






$






1.38






 








 






 






 






 








 






 






 






 








Net income - as reported under GAAP






$






73,757






 






 






$






63,978






 








Income taxes






 






28,056






 






 






 






11,536






 








Interest expense






 






19,897






 






 






 






9,972






 








Interest income






 






(613






)






 






 






(3,143






)








EBIT






$






121,097






 






 






$






82,343






 








Depreciation and amortization






 






13,257






 






 






 






13,583






 








EBITDA






$






134,354






 






 






$






95,926






 








Restructuring and transformation costs (b)






 






14,686






 






 






 






17,041






 








Acquisition and integration-related costs (c)






 






14,470






 






 






 






—






 








Adjusted EBITDA






$






163,510






 






 






$






112,967






 








As a percentage of total net revenues






 






16.1






%






 






 






16.2






%














 



Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis, on an adjusted basis and on an adjusted organic basis, which excludes the operating results from the Helly Hansen acquisition. EBIT, EBITDA and adjusted presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers.




 




(a) Contribution from Helly Hansen represents the operating results from the Helly Hansen® and Musto® brands.




(b) See Note 1 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document.




(c) See Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document.









KONTOOR BRANDS, INC.




Supplemental Financial Information




Reconciliation of Adjusted Financial Measures - Year-to-Date (Non-GAAP)




(Unaudited)









 



 






 






Twelve Months Ended December








(Dollars in thousands, except per share amounts)






 






 






2025






 






 






 






2024






 








 






 






 






 






 








Net revenues - as reported under GAAP






 






$






3,152,456






 






 






$






2,607,578






 








Contribution from Helly Hansen (a)






 






 






475,485






 






 






 






—






 








Organic net revenues






 






$






2,676,971






 






 






$






2,607,578






 








 






 






 






 






 








 






 






 






 






 








Cost of goods sold - as reported under GAAP






 






$






1,729,067






 






 






$






1,446,008






 








Restructuring & transformation costs (b)






 






 






(46,341






)






 






 






(15,453






)








Adjusted cost of goods sold






 






$






1,682,726






 






 






$






1,430,555






 








Contribution from Helly Hansen (a)






 






 






243,779






 






 






 






—






 








Adjusted organic cost of goods sold






 






$






1,438,947






 






 






$






1,430,555






 








 






 






 






 






 








 






 






 






 






 








Selling, general and administrative expenses - as reported under GAAP






 






$






1,086,581






 






 






$






819,281






 








Restructuring & transformation costs (b)






 







(34,258






)






 







(22,886






)








Acquisition and integration-related costs (c)






 






 






(50,834






)






 






 






—






 








Adjusted selling, general and administrative expenses






 






$






1,001,489






 






 






$






796,395






 








Contribution from Helly Hansen (a)






 






 






186,600






 






 






 






—






 








Adjusted organic selling, general and administrative expenses






 






$






814,889






 






 






$






796,395






 








 






 






 






 






 








 






 






 






 






 








Other expense, net - as reported under GAAP






 






$






11,316






 






 






$






(11,191






)








Acquisition purchase price hedging gains (c)






 






 






(24,116






)






 






 






—






 








Adjusted other expense, net






 






$






(12,800






)






 






$






(11,191






)








Contribution from Helly Hansen (a)






 






 






(2,166






)






 






 






—






 








Adjusted organic other expense, net






 






$






(10,634






)






 






$






(11,191






)








 






 






 






 






 








 






 






 






 






 








Diluted earnings per share - as reported under GAAP






 






$






4.05






 






 






$






4.36






 








Restructuring & transformation costs (b)






 







1.16






 






 







0.53






 








Acquisition and integration-related costs (c)






 






 






0.38






 






 






 






—






 








Adjusted diluted earnings per share






 






$






5.59






 






 






$






4.89






 








Contribution from Helly Hansen (a)






 






 






0.35






 






 






 






—






 








Adjusted organic diluted earnings per share






 






$






5.24






 






 






$






4.89






 








 






 






 






 






 








 






 






 






 






 








Net income - as reported under GAAP






 






$






227,452






 






 






$






245,802






 








Income taxes






 






 






71,220






 






 






 






55,621






 








Interest expense






 






 






62,162






 






 






 






40,824






 








Interest income






 






 






(7,299






)






 






 






(11,149






)








EBIT






 






$






353,535






 






 






$






331,098






 








 






 






 






 






 








Depreciation and amortization






 






 






47,786






 






 






 






42,635






 








 






 






 






 






 








EBITDA






 






$






401,321






 






 






$






373,733






 








 






 






 






 






 








Restructuring & transformation costs (b)






 






 






80,599






 






 






 






38,339






 








Acquisition and integration-related costs (c)






 






 






26,718






 






 






 






—






 








Adjusted EBITDA






 






$






508,638






 






 






$






412,072






 








As a percentage of total net revenues






 






 






16.1






%






 






 






15.8






%















 



Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis, on an adjusted basis and on an adjusted organic basis, which excludes the operating results from the Helly Hansen acquisition. EBIT, EBITDA and adjusted presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers.




 




(a) Contribution from Helly Hansen represents the operating results from the Helly Hansen® and Musto® brands.




(b) See Note 1 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document.




(c) See Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document.









KONTOOR BRANDS, INC.




Supplemental Financial Information




Summary of Select GAAP and Non-GAAP Measures




(Unaudited)









 



 






 






Three Months Ended December








 






 






2025






 






2024








(Dollars in thousands, except per share amounts)






 






GAAP






 






Adjusted






 






Adjusted

Organic






 






GAAP






 






Adjusted








 






 






 






 






 






 






 






 






 






 






 








Net revenues






 






$






1,018,081






 






 






$






1,018,081






 






 






$






764,464






 






 






$






699,284






 






 






$






699,284






 








 






 






 






 






 






 






 






 






 






 






 








Gross margin






 






$






470,755






 






 






$






476,400






 






 






$






343,925






 






 






$






305,556






 






 






$






312,740






 








As a percentage of total net revenues






 






 






46.2






%






 






 






46.8






%






 






 






45.0






%






 






 






43.7






%






 






 






44.7






%








 






 






 






 






 






 






 






 






 






 






 








Selling, general and administrative expenses






 






$






349,635






 






 






$






326,124






 






 






$






233,721






 






 






$






221,261






 






 






$






211,404






 








As a percentage of total net revenues






 






 






34.3






%






 






 






32.0






%






 






 






30.6






%






 






 






31.6






%






 






 






30.2






%








 






 






 






 






 






 






 






 






 






 






 








Operating income






 






$






121,120






 






 






$






150,276






 






 






$






110,204






 






 






$






84,295






 






 






$






101,336






 








As a percentage of total net revenues






 






 






11.9






%






 






 






14.8






%






 






 






14.4






%






 






 






12.1






%






 






 






14.5






%








Earnings per share - diluted






 






$






1.31






 






 






$






1.73






 






 






$






1.29






 






 






$






1.14






 






 






$






1.38






 









 






 






 






 






 






 






 






 






 






 






 








 






 






Twelve Months Ended December








 






 






2025






 






2024








(Dollars in thousands, except per share amounts)






 






GAAP






 






Adjusted






 






Adjusted

Organic






 






GAAP






 






Adjusted








 






 






 






 






 






 






 






 






 






 






 








Net revenues






 






$






3,152,456






 






 






$






3,152,456






 






 






$






2,676,971






 






 






$






2,607,578






 






 






$






2,607,578






 








 






 






 






 






 






 






 






 






 






 






 








Gross margin






 






$






1,423,389






 






 






$






1,469,730






 






 






$






1,238,024






 






 






$






1,161,570






 






 






$






1,177,023






 








As a percentage of total net revenues






 






 






45.2






%






 






 






46.6






%






 






 






46.2






%






 






 






44.5






%






 






 






45.1






%








 






 






 






 






 






 






 






 






 






 






 








Selling, general and administrative expenses






 






$






1,086,581






 






 






$






1,001,489






 






 






$






814,889






 






 






$






819,281






 






 






$






796,395






 








As a percentage of total net revenues






 






 






34.5






%






 






 






31.8






%






 






 






30.4






%






 






 






31.4






%






 






 






30.5






%








 






 






 






 






 






 






 






 






 






 






 








Operating income






 






$






336,808






 






 






$






468,241






 






 






$






423,135






 






 






$






342,289






 






 






$






380,628






 








As a percentage of total net revenues






 






 






10.7






%






 






 






14.9






%






 






 






15.8






%






 






 






13.1






%






 






 






14.6






%








Earnings per common share - diluted






 






$






4.05






 






 






$






5.59






 






 






$






5.24






 






 






$






4.36






 






 






$






4.89






 



























 



Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis, on an adjusted basis and on an adjusted organic basis, which excludes the operating results from the Helly Hansen acquisition. These adjusted and adjusted organic presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document.









KONTOOR BRANDS, INC.




Supplemental Financial Information




Disaggregation of Revenue




(Unaudited)









 



 






 






Three Months Ended December 2025








 






 






Revenues - As Reported








(In thousands)






 






Wrangler






 






Lee






 






Helly Hansen






 






Other






 






Total








Channel revenues






 






 






 






 






 






 






 






 






 






 








U.S. Wholesale






 






$






450,272






 






$






102,119






 






$






32,747






 






$






4,477






 






$






589,615








International Wholesale






 






 






43,119






 






 






43,755






 






 






131,401






 






 






3,148






 






 






221,423








Direct-to-Consumer






 






 






68,475






 






 






52,224






 






 






82,965






 






 






3,379






 






 






207,043








Total






 






$






561,866






 






$






198,098






 






$






247,113






 






$






11,004






 






$






1,018,081








 






 






 






 






 






 






 






 






 






 






 








Geographic revenues






 






 






 






 






 






 






 






 






 






 








U.S.






 






$






509,235






 






$






121,114






 






$






67,866






 






$






5,130






 






$






703,345








International






 






 






52,631






 






 






76,984






 






 






179,247






 






 






5,874






 






 






314,736








Total






 






$






561,866






 






$






198,098






 






$






247,113






 






$






11,004






 






$






1,018,081









 






 






 






 






 






 






 






 






 






 






 








 






 






Twelve Months Ended December 2025








 






 






Revenues - As Reported








(In thousands)






 






Wrangler






 






Lee






 






Helly Hansen






 






Other






 






Total








Channel revenues






 






 






 






 






 






 






 






 






 






 








U.S. Wholesale






 






$






1,542,582






 






$






394,721






 






$






65,892






 






$






11,789






 






$






2,014,984








International Wholesale






 






 






180,535






 






 






195,583






 






 






273,212






 






 






8,388






 






 






657,718








Direct-to-Consumer






 






 






191,505






 






 






160,064






 






 






120,612






 






 






7,573






 






 






479,754








Total






 






$






1,914,622






 






$






750,368






 






$






459,716






 






$






27,750






 






$






3,152,456








 






 






 






 






 






 






 






 






 






 






 








Geographic revenues






 






 






 






 






 






 






 






 






 






 








U.S.






 






$






1,705,062






 






$






456,582






 






$






112,331






 






$






13,294






 






$






2,287,269








International






 






 






209,560






 






 






293,786






 






 






347,385






 






 






14,456






 






 






865,187








Total






 






$






1,914,622






 






$






750,368






 






$






459,716






 






$






27,750






 






$






3,152,456









KONTOOR BRANDS, INC.




Supplemental Financial Information




Disaggregation of Revenue




(Unaudited)









 



 






 






Three Months Ended December 2024








 






 






Revenues - As Reported








(In thousands)






 






Wrangler






 






Lee






 






Helly Hansen






 






Other






 






Total








Channel revenues






 






 






 






 






 






 






 






 






 






 








U.S. Wholesale






 






$






404,358






 






$






93,701






 






$






—






 






$






2,369






 






$






500,428








International Wholesale






 






 






40,776






 






 






51,760






 






 






—






 






 






—






 






 






92,536








Direct-to-Consumer






 






 






58,009






 






 






48,079






 






 






—






 






 






232






 






 






106,320








Total






 






$






503,143






 






$






193,540






 






$






—






 






$






2,601






 






$






699,284








 






 






 






 






 






 






 






 






 






 






 








Geographic revenues






 






 






 






 






 






 






 






 






 






 








U.S.






 






$






455,317






 






$






111,236






 






$






—






 






$






2,601






 






$






569,154








International






 






 






47,826






 






 






82,304






 






 






—






 






 






—






 






 






130,130








Total






 






$






503,143






 






$






193,540






 






$






—






 






$






2,601






 






$






699,284









 






 






 






 






 






 






 






 






 






 






 








 






 






Twelve Months Ended December 2024








 






 






Revenues - As Reported








(In thousands)






 






Wrangler






 






Lee






 






Helly Hansen






 






Other






 






Total








Channel revenues






 






 






 






 






 






 






 






 






 






 








U.S. Wholesale






 






$






1,460,102






 






$






414,803






 






$






—






 






$






10,200






 






$






1,885,105








International Wholesale






 






 






177,107






 






 






222,308






 






 






—






 






 






—






 






 






399,415








Direct-to-Consumer






 






 






168,780






 






 






153,514






 






 






—






 






 






764






 






 






323,058








Total






 






$






1,805,989






 






$






790,625






 






$






—






 






$






10,964






 






$






2,607,578








 






 






 






 






 






 






 






 






 






 






 








Geographic revenues






 






 






 






 






 






 






 






 






 






 








U.S.






 






$






1,602,413






 






$






473,672






 






$






—






 






$






10,964






 






$






2,087,049








International






 






 






203,576






 






 






316,953






 






 






—






 






 






—






 






 






520,529








Total






 






$






1,805,989






 






$






790,625






 






$






—






 






$






10,964






 






$






2,607,578









KONTOOR BRANDS, INC.




Supplemental Financial Information




Summary of Select Revenue Information




(Unaudited)













 



 






 






Three Months Ended December






 






 






 






 








 






 






 






2025






 






 






2024






 






2025 to 2024








(Dollars in thousands)






 






As Reported under GAAP






 






% Change

Reported






 






% Change

Constant

Currency








Wrangler U.S.






 






$






509,235






 






$






455,317






 






12%






 






12%








Lee U.S.






 






 






121,114






 






 






111,236






 






9%






 






9%








Helly Hansen U.S.






 






 






67,866






 






 






—






 






*






 






*








Other U.S.






 






 






5,130






 






 






2,601






 






97%






 






97%








Total U.S. revenues






 






$






703,345






 






$






569,154






 






24%






 






24%








 






 






 






 






 






 






 






 






 








Wrangler International






 






$






52,631






 






$






47,826






 






10%






 






3%








Lee International






 






 






76,984






 






 






82,304






 






(6)%






 






(12)%








Helly Hansen International






 






 






179,247






 






 






—






 






*






 






*








Other International






 






 






5,874






 






 






—






 






*






 






*








Total International revenues






 






$






314,736






 






$






130,130






 






142%






 






136%








 






 






 






 






 






 






 






 






 








Global Wrangler






 






$






561,866






 






$






503,143






 






12%






 






11%








Global Lee






 






 






198,098






 






 






193,540






 






2%






 






—%








Global Helly Hansen






 






 






247,113






 






 






—






 






*






 






*








Global Other






 






 






11,004






 






 






2,601






 






323%






 






323%








Total revenues






 






$






1,018,081






 






$






699,284






 






46%






 






44%








* Calculation not meaningful.









 






 






 






 






 






 






 






 






 








 






 






Twelve Months Ended December






 






 






 






 








 






 






 






2025






 






 






2024






 






2025 to 2024








(Dollars in thousands)






 






As Reported Under GAAP






 






% Change

Reported






 






% Change

Constant

Currency








Wrangler U.S.






 






$






1,705,062






 






$






1,602,413






 






6%






 






6%








Lee U.S.






 






 






456,582






 






 






473,672






 






(4)%






 






(4)%








Helly Hansen U.S.






 






 






112,331






 






 






—






 






*






 






*








Other U.S.






 






 






13,294






 






 






10,964






 






21%






 






21%








Total U.S. revenues






 






$






2,287,269






 






$






2,087,049






 






10%






 






10%








 






 






 






 






 






 






 






 






 








Wrangler International






 






$






209,560






 






$






203,576






 






3%






 






1%








Lee International






 






 






293,786






 






 






316,953






 






(7)%






 






(9)%








Helly Hansen International






 






 






347,385






 






 






—






 






*






 






*








Other International






 






 






14,456






 






 






—






 






*






 






*








Total International revenues






 






$






865,187






 






$






520,529






 






66%






 






65%








 






 






 






 






 






 






 






 






 








Global Wrangler






 






$






1,914,622






 






$






1,805,989






 






6%






 






6%








Global Lee






 






 






750,368






 






 






790,625






 






(5)%






 






(6)%








Global Helly Hansen






 






 






459,716






 






 






—






 






*






 






*








Global Other






 






 






27,750






 






 






10,964






 






153%






 






153%








Total revenues






 






$






3,152,456






 






$






2,607,578






 






21%






 






21%








* Calculation not meaningful.







 



Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on a constant currency basis, which is a non-GAAP financial measure. See “Business Segment Information – Constant Currency Basis (Non-GAAP)” for additional information on constant currency financial calculations.









KONTOOR BRANDS, INC.




Supplemental Financial Information




Adjusted Return on Invested Capital and Pro Forma Net Leverage Ratio (Non-GAAP)




(Unaudited)











 



(Dollars in thousands)






 






Twelve Months Ended






 






 








Numerator






 






December 2025






 






December 2024






 






 








Net income






 






$






227,452






 






 






$






245,802






 






 






 








Plus: Income taxes






 






 






71,220






 






 






 






55,621






 






 






 








Plus: Interest income (expense), net






 






 






54,863






 






 






 






29,675






 






 






 








EBIT






 






$






353,535






 






 






$






331,098






 






 






 








Plus: Restructuring and transformation costs (a)






 






 






80,599






 






 






 






38,339






 






 






 








Plus: Acquisition and integration-related costs (a)






 






 






26,718






 






 






 






—






 






 






 








Plus: Operating lease interest (b)






 






 






2,564






 






 






 






1,322






 






 






 








Adjusted EBIT






 






$






463,416






 






 






$






370,759






 






 






 








Adjusted effective income tax rate (c)






 






 






18






%






 






 






19






%






 






 








Adjusted net operating profit after taxes






 






$






379,660






 






 






$






300,239






 






 






 








 






 






 






 






 






 






 








Depreciation and amortization






 






 






45,486






 






 






 






 






 








Pro forma adjusted EBITDA (d)






 






$






514,789






 






 






 






 






 








 






 






 






 






 






 






 








 






 






 






 






 






 






 








Denominator






 






December 2025






 






December 2024






 






December 2023








Equity






 






$






564,867






 






 






$






400,055






 






 






$






371,913






 








Plus: Current portion of long-term debt and other borrowings






 






 






8,750






 






 






 






—






 






 






 






20,000






 








Plus: Noncurrent portion of long-term debt






 






 






1,134,579






 






 






 






740,315






 






 






 






763,921






 








Plus: Operating lease liabilities (e)






 






 






150,540






 






 






 






50,845






 






 






 






57,756






 








Less: Cash and cash equivalents






 






 






(108,442






)






 






 






(334,066






)






 






 






(215,050






)








Invested capital






 






$






1,750,294






 






 






$






857,149






 






 






$






998,540






 








Average invested capital (f)






 






$






1,303,722






 






 






$






927,845






 






 






 








 






 






 






 






 






 






 








Net income to average debt and equity (g)






 






 






16.0






%






 






 






21.4






%






 






 








Adjusted return on invested capital






 






 






29.1






%






 






 






32.4






%






 






 








Operating income to net debt ratio (h)






 






 






3.1






 






 






 






 






 








Pro forma net leverage ratio (i)






 






 






2.0






 






 






 






 






 















 



Non-GAAP Financial Information: Adjusted return on invested capital (“ROIC”) is a non-GAAP measure. We believe this metric is useful in assessing the effectiveness of our capital allocation over time. Additionally, pro forma net leverage ratio is a non-GAAP measure. We believe this metric is useful in assessing our financial leverage. ROIC and pro forma net leverage ratio may be different from similarly titled measures used by other companies. Amounts herein may not recalculate due to the use of unrounded numbers.




 




(a) See Note 1 and Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document.




(b) Operating lease interest is based upon the discount rate for each lease and recorded as a component of rent expense within “Selling, general and administrative expenses” in the Company's statements of operations. The adjustment for operating lease interest represents the add-back to earnings before interest and taxes (“EBIT”) based upon the assumption that properties under our operating leases were owned or accounted for as finance leases. Operating lease interest is added back to EBIT in the adjusted ROIC calculation to account for differences in capital structure between us and other companies.




(c) Effective income tax rate adjusted for acquisition and integration-related and restructuring and transformation costs and the corresponding tax impact. See Note 1 and Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document.




(d) Calculated as the total of reported adjusted EBITDA for the trailing twelve month period and Helly Hansen's EBITDA of $6.2 million for the period January 2025 through May 2025, prior to Kontoor's ownership.




(e) Total of “Operating lease liabilities, current” and “Operating lease liabilities, noncurrent” in the Company's balance sheets.




(f) The average is based on the “Invested capital” at the end of the current period and at the end of the comparable prior period.




(g) Calculated as “Net income” divided by average “Debt” and “Equity.” “Debt” includes the current and noncurrent portion of long-term debt as well as other short-term borrowings. The average is based on the subtotal of “Debt” and “Equity” at the end of the current period and at the end of the comparable prior period.




(h) Calculated as net debt divided by reported operating income for the trailing twelve month period. Net debt is defined as "Debt" less "Cash and cash equivalents" at the end of the current period.




(i) Calculated as net debt divided by pro forma adjusted EBITDA for the trailing twelve month period.









KONTOOR BRANDS, INC.




Supplemental Financial Information




Reconciliation of Adjusted Financial Measures - Notes (Non-GAAP)




(Unaudited)








 








Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures








 








Management uses non-GAAP financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. In addition, adjusted EBITDA is a key financial measure for the Company's shareholders and financial leaders, as the Company's debt financing agreements require the measurement of adjusted EBITDA, along with other measures, in connection with the Company's compliance with debt covenants. While management believes that these non-GAAP measures are useful in evaluating the business, this information should be considered supplemental in nature and should be viewed in addition to, and not as an alternate for, reported results under GAAP. In addition, these non-GAAP measures may be different from similarly titled measures used by other companies.








 








(1) During the three months ended December 2025, restructuring and transformation costs included $5.7 million related to the closure of a portion of our manufacturing facilities, recorded to "cost of goods sold", and $9.0 million related to business optimization activities recorded to "selling, general and administrative expenses." During the twelve months ended December 2025, the Company incurred $80.6 million of charges related to the closure of a portion of our manufacturing facilities and business optimization activities, of which $46.3 million were recorded in "cost of goods sold", and $34.3 million were recorded in "selling, general and administrative expenses".








 








During the three months ended December 2024, restructuring and transformation costs included $9.9 million related to business optimization activities and $7.1 million related to streamlining and transferring select production within our internal manufacturing network. During the twelve months ended December 2024, restructuring and transformation costs included $25.2 million related to business optimization activities and $13.1 million related to streamlining and transferring select production within our internal manufacturing network.








 








During the three months ended December 2025 and December 2024, total restructuring and transformation costs resulted in a corresponding tax impact of $2.7 million and $3.9 million, respectively. During the twelve months ended December 2025 and December 2024, total restructuring and transformation costs resulted in a corresponding tax impact of $16.0 million and $9.0 million, respectively.








 








(2) During the three months ended December 2025, acquisition and integration-related costs included $14.5 million of professional and other fees. Total acquisition and integration-related costs resulted in a corresponding tax impact of $2.7 million for the three months ended December 2025.








 








During the twelve months ended December 2025, acquisition and integration-related costs included $50.8 million of professional and other fees and $24.1 million of gains related to foreign currency exchange contracts to hedge the purchase price of the Helly Hansen acquisition. Total acquisition and integration-related costs resulted in a corresponding tax impact of $5.3 million for the twelve months ended December 2025.







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260303349112/en/
Investors:

Michael Karapetian, (336) 332-4263

Vice President, Corporate Development, Strategy, and Investor Relations

Michael.Karapetian@kontoorbrands.com


or


Media:

Julia Burge, (336) 332-5122

Senior Director, Corporate Communications

Julia.Burge@kontoorbrands.com


Original: Kontoor Brands Reports 2025 Fourth Quarter and Full Year Results; Provides Initial 2026 Outlook