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

Kontoor Brands (NYSE:KTB) released its earnings results on Wednesday. The company reported $1.50 earnings per share for the quarter, beating the consensus estimate of $1.05 by $0.45, Briefing.com reports. The company had revenue of $584.29 million for the quarter, compared to the consensus estimate of $586.95 million. Kontoor Brands had a return on equity of 60.17% and a net margin of 8.30%.Kontoor Brands’s quarterly revenue was down 11.2% compared to the same quarter last year. During the same period in the previous year, the business 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 Price Performance

NYSE KTB traded up $5.09 on Wednesday, reaching $80.05. The company had a trading volume of 560,296 shares, compared to its average volume of 805,970. The stock has a market capitalization of $4.42 billion, a PE 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. The firm’s 50 day moving average price is $81.20 and its 200 day moving average price is $73.24.

Kontoor Brands Dividend Announcement

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

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports on KTB shares. Barclays increased their target price on shares of Kontoor Brands from $93.00 to $96.00 and gave the stock an “overweight” rating in a report on Monday, May 11th. JPMorgan Chase & Co. upped their price target on shares of Kontoor Brands from $90.00 to $105.00 and gave the stock an “overweight” rating in a research report on Tuesday, August 4th. BTIG Research restated a “buy” rating and set a $100.00 price objective on shares of Kontoor Brands in a research report on Friday, May 1st. Zacks Research upgraded shares of Kontoor Brands from a “strong sell” rating to a “hold” rating in a research note on Thursday, July 9th. Finally, Wall Street Zen downgraded shares of Kontoor Brands from a “strong-buy” rating to a “hold” rating in a report on Saturday, May 9th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $92.70.

Insider Buying and Selling at Kontoor Brands

In other news, EVP Jennifer H. Broyles sold 4,000 shares of the firm’s stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $81.02, for a total transaction of $324,080.00. Following the completion of the transaction, the executive vice president owned 40,261 shares in the company, valued at $3,261,946.22. This trade represents a 9.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 1.80% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Kontoor Brands

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KTB. Transamerica Financial Advisors LLC raised its holdings in shares of Kontoor Brands by 335.5% during the 4th quarter. Transamerica Financial Advisors LLC now owns 405 shares of the company’s stock worth $25,000 after acquiring an additional 312 shares in the last quarter. iSAM Funds UK Ltd bought a new stake in Kontoor Brands in the third quarter worth $44,000. Harvest Fund Management Co. Ltd purchased a new stake in Kontoor Brands during the third quarter valued at $68,000. Johnson Financial Group Inc. purchased a new stake in Kontoor Brands during the third quarter valued at $84,000. Finally, Group One Trading LLC lifted its position in Kontoor Brands by 1,210.0% during the third quarter. Group One Trading LLC now owns 1,110 shares of the company’s stock valued at $89,000 after purchasing an additional 1,210 shares during the last quarter. 93.06% of the stock is owned by institutional investors.

About Kontoor Brands

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.