Kontoor Brands (NYSE:KTB) Releases Earnings Results, Beats Estimates By $0.45 EPS

Kontoor Brands (NYSE:KTB) issued its earnings results on Wednesday. The company reported $1.50 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.05 by $0.45, Briefing.com reports. The business had revenue of $584.29 million during the quarter, compared to analyst estimates of $586.95 million. Kontoor Brands had a return on equity of 60.17% and a net margin of 8.30%.Kontoor Brands’s revenue for the quarter was down 11.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.33 earnings per share. Kontoor Brands updated its FY 2026 guidance to 5.250-5.350 EPS.

Here are the key takeaways from Kontoor Brands’ conference call:

• Second-quarter performance exceeded expectations: revenue rose 31% in the first half to $1.2 billion, adjusted gross margin expanded 590 basis points to 52.2%, and adjusted EPS increased 36% to $2.12.
• Helly Hansen is progressing ahead of plan, with pro forma revenue up 12% in the first half and operating margin expanding to approximately 7%; the brand also generated positive operating profit in its seasonally smallest quarter for the first time in the company’s recent history.
• Kontoor raised its 2026 adjusted gross margin outlook to 49.8%-50.0% and EPS outlook to $5.25-$5.35, while expecting more than $900 million in total capital returns, including a planned $400 million accelerated share repurchase after the Lee divestiture closes.
• Wrangler continued to gain market share, with 17 consecutive quarters of share gains, 20% first-half growth in female, strong Western performance, and 12% second-quarter DTC growth; management expects mid-single-digit growth in the second half.
• Retail partners remain cautious, with Wrangler retail inventories down high-single to low-double digits in some areas, while tariff assumptions remain conservative and the company still must eliminate roughly $40 million of stranded Lee-related costs over 12 to 18 months.

Kontoor Brands Stock Up 6.8%

Shares of NYSE KTB traded up $5.09 on Wednesday, reaching $80.05. 560,296 shares of the company’s stock traded hands, compared to its average volume of 805,970. The business’s 50 day simple moving average is $81.20 and its two-hundred day simple moving average is $73.24. The company has a market cap of $4.42 billion, a price-to-earnings ratio of 16.20 and a beta of 0.88. Kontoor Brands has a 12 month low of $56.19 and a 12 month high of $88.96. The company has a quick ratio of 1.10, a current ratio of 1.87 and a debt-to-equity ratio of 1.83.

Kontoor Brands Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, September 18th. Shareholders of record on Tuesday, September 8th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.6%. Kontoor Brands’s dividend payout ratio (DPR) is currently 42.91%.

Insider Activity at Kontoor Brands

In other Kontoor Brands news, EVP Jennifer H. Broyles sold 4,000 shares of Kontoor Brands stock in a transaction on Friday, June 12th. The stock was sold at an average price of $81.02, for a total value of $324,080.00. Following the completion of the sale, the executive vice president owned 40,261 shares of the company’s stock, valued at approximately $3,261,946.22. This trade represents a 9.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 1.80% of the stock is currently owned by insiders.

Institutional Trading of Kontoor Brands

A number of large investors have recently made changes to their positions in KTB. Boston Partners purchased a new stake in shares of Kontoor Brands during the 3rd quarter valued at about $44,733,000. JPMorgan Chase & Co. boosted its holdings in shares of Kontoor Brands by 15.8% in the fourth quarter. JPMorgan Chase & Co. now owns 3,019,204 shares of the company’s stock worth $184,443,000 after buying an additional 413,005 shares during the last quarter. Amundi purchased a new position in shares of Kontoor Brands in the third quarter worth approximately $24,653,000. Balyasny Asset Management L.P. grew its position in Kontoor Brands by 134.3% during the second quarter. Balyasny Asset Management L.P. now owns 468,630 shares of the company’s stock valued at $30,916,000 after buying an additional 268,604 shares during the period. Finally, Tudor Investment Corp ET AL bought a new stake in Kontoor Brands during the fourth quarter valued at approximately $14,911,000. 93.06% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on KTB. BTIG Research restated a “buy” rating and set a $100.00 price target on shares of Kontoor Brands in a research report on Friday, May 1st. Wall Street Zen lowered Kontoor Brands from a “strong-buy” rating to a “hold” rating in a research report on Saturday, May 9th. Weiss Ratings downgraded Kontoor Brands from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, August 5th. Barclays raised their price target on Kontoor Brands from $93.00 to $96.00 and gave the stock an “overweight” rating in a research note on Monday, May 11th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Kontoor Brands from $90.00 to $105.00 and gave the company an “overweight” rating in a research report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $92.70.

Kontoor Brands Company Profile

Kontoor Brands, Inc is a global apparel company best known for its Wrangler and Lee denim and lifestyle brands. Established as an independent, publicly traded company in May 2019 following a spin-off from VF Corporation, Kontoor leverages a legacy that dates back to 1889 with the founding of Lee and to 1947 with the introduction of the Wrangler brand. The company focuses on designing, manufacturing and distributing premium, casual and workwear apparel, including jeans, pants, shorts, shirts, jackets and complementary accessories.

Kontoor Brands operates a diversified sales model that combines wholesale partnerships with leading retailers, distribution through e-commerce channels and select direct-to-consumer formats.