AI-extracted from the 10-Q filed 2026-08-12 — Q2 FY2026 (quarter ended July 4, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Net revenues rose 19% YoY to $584.3M as Helly Hansen's first full quarter drove growth, while gross margin expanded 970bps to 56.2% on mix, Project Jeanius savings, and a one-time $15.4M facility-sale gain.
Biggest Revenue Drivers
Wrangler$469.0M+1.7% YoY
Growth in Western and female categories and a 7% increase in international wholesale, including higher sales in Canada; U.S. wholesale was flat
Helly Hansen$106.8M+$80.1M YoY (not meaningful %)
Includes the entire quarter's results vs. only one month in the prior-year period, plus growth in Sport and Workwear businesses
Biggest Revenue Drivers
Total revenue: $584.3M+19% YoY
Wrangler$469.0M+1.7% YoY
Growth in Western and female categories and a 7% increase in international wholesale, including higher sales in Canada; U.S. wholesale was flat
Helly Hansen$106.8M+$80.1M YoY (not meaningful %)
Includes the entire quarter's results vs. only one month in the prior-year period, plus growth in Sport and Workwear businesses
Other$8.4M+80% YoY
Includes Musto and Chic brands, other company-owned brands and private label apparel
Largest Expense Items
Cost of goods sold$256.0M-3% YoY
Includes a $15.4M gain on sale of a manufacturing facility and Project Jeanius cost reduction benefits
Selling, general and administrative expenses$237.7M+38% YoY
$42.3M from including Helly Hansen for the full quarter, $10.4M higher direct-to-consumer/demand creation/technology investment, and $4.7M of incremental costs previously allocated to Lee
Interest expense$15.7M+16% YoY
Higher debt outstanding used to fund the Helly Hansen acquisition
Margins: Gross margin rose 970bps to 56.2%, driven by favorable channel/product mix and pricing (400bps), the manufacturing facility sale gain (260bps), Project Jeanius savings (230bps), and Helly Hansen's higher margin business (80bps), partly offset by higher restructuring costs (30bps). Operating margin rose to 15.5% from 11.6%.
Watch Items from the Filing
Planned sale of the Lee business for $750M cash plus a $250M earnout remains subject to closing conditions including regulatory approval, with either party able to terminate if not closed by February 1, 2027.
Helly Hansen segment profit was only $1.9M on $106.8M revenue (1.8% operating margin) versus Wrangler's 29.6%, indicating integration and margin ramp are still in early stages.
Income from continuing operations fell 3% YoY despite 59% operating income growth, because a $33.0M one-time FX hedge gain from the Q2 2025 acquisition financing did not recur.
U.S. tariff regime remains volatile: IEEPA tariffs were ruled unauthorized by the Supreme Court and replaced by Section 122, then Section 301 tariffs, with ongoing legal appeals creating uncertainty.
Board approved a new $750.0M share repurchase program in May 2026, with $700.0M still available after $75.4M repurchased in the first half of 2026.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About Kontoor Brands, Inc. (KTB): stock profile, AI score and financials
Kontoor Brands, Inc. (KTB) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores KTB at 62.7/100 on a composite quality score built from its SEC filings, placing it at rank #680 of 2,925 stocks — the top 25% of the AI-ranked universe. KTB scores in the top quartile across institutional flow (84.8), balance sheet strength (84.2). Based on the latest XBRL financial filings (Q2 2026), Kontoor Brands, Inc. reports quarterly revenue of $584.3M, net income of $64.8M, an operating margin of 15.5%. Top institutional holders of KTB by reported 13-F value include BlackRock, PNC FINANCIAL SERVICES GROUP, VANGUARD PORTFOLIO MANAGEMENT, based on the most recent SEC filings. KTB trades on the NYSE exchange and files with the SEC under CIK 1760965. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate KTB daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Kontoor Brands, Inc. directly from SEC EDGAR.