Kontoor Brands Q3 revenue misses; profit beats on margin growth
KTB•Kontoor Brands’ third-quarter revenue rose 3% to $685 million, missing the $692.86 million consensus, while adjusted EPS rose 40% to $1.50 and beat expectations. The company raised its 2026 adjusted EPS outlook to $5.40 and said it expects at least $6.60 in 2027.
1. Quarterly results
Third-quarter revenue rose 3% to $685 million, below analysts’ $692.86 million estimate. Adjusted EPS rose 40% to $1.50, above the $1.35 consensus; the company reported a loss per share of $0.62. Gross margin was 48.30% and operating income was $77 million.
2. Outlook and drivers
Kontoor Brands raised its 2026 full-year adjusted EPS outlook to $5.40 from a previous range of $5.25 to $5.35, and expects adjusted gross margin of 50.0% to 50.2%. It sees 2027 adjusted EPS of at least $6.60 and plans to repurchase $450 million of shares in the fourth quarter after the Lee divestiture. The company said Wrangler and Helly Hansen revenue each grew 3%; adjusted gross margin growth reflected Project Jeanius, favorable business mix and pricing, while SG&A expenses rose with Lee divestiture overhead and higher direct-to-consumer and technology investments.
