Kontoor Brands to Sell Lee, Launch $750M Buyback and Raise Outlook
KTB•Kontoor Brands announced a planned divestiture of its Lee brand to focus on core Wrangler and Helly Hansen labels and unveiled a $750 million share repurchase program. It raised its full-year outlook after stronger first-quarter results driven by higher Wrangler and Helly Hansen sales despite an earnings miss.
1. First-Quarter Results and Outlook
Kontoor posted stronger first-quarter sales driven by Wrangler and Helly Hansen, with net revenues up year-over-year. Earnings per share came in below expectations, yet management raised its full-year sales and margin guidance on improved brand momentum.
2. Divestiture of Lee Brand
The company plans to divest the Lee brand, reallocating capital and resources toward its core Wrangler and Helly Hansen franchises. The transaction is expected to close in the second half of 2026 and generate cash proceeds to support growth initiatives.
3. $750 Million Share Repurchase Program
Kontoor launched a $750 million share repurchase program to return capital to shareholders and offset dilution from equity awards. The program underscores confidence in cash flow generation and is slated to run through fiscal 2026.
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