Kontoor Brands raises FY26 outlook as Wrangler and Helly Hansen drive growth
Kontoor Brands reported a strong second quarter, with revenue rising 19% year-on-year to $584 million, supported by continued growth at Wrangler and the contribution of Helly Hansen, acquired in mid-2025.
Wrangler generated global revenue of $469 million, up 2% from the same period last year. Its US direct-to-consumer business grew 9%, while international revenue increased 10%, driven by a 31% rise in direct-to-consumer sales and growth across wholesale channels.
Helly Hansen contributed $114 million in global sales during the quarter. The outerwear brand also recorded double-digit pro-forma revenue growth in the first half of 2026, exceeding Kontoor’s expectations and helping improve overall profitability.
The company’s gross margin increased significantly, reaching 56.2%, up 970 basis points on a reported basis. Adjusted gross margin rose 710 basis points to 53.8%. Kontoor attributed the improvement to its multi-brand strategy, favourable product and channel mix, and the benefits of acquisitions.
Adjusted operating income increased 19% to $94 million, while the adjusted operating margin reached 16%.
“Wrangler delivered another quarter of diversified growth led by strong performance in female, direct-to-consumer and international,” said Scott Baxter, CEO and chairman of Kontoor Brands. He added that Helly Hansen delivered a better-than-expected quarter and significant profitability improvement during the first half of 2026.
Kontoor raises FY26 outlook
Kontoor has raised its full-year expectations following the strong first-half performance. Revenue is now forecast at $2.66–$2.71 billion, representing 12–13% year-on-year growth.
The company also lifted its adjusted gross margin outlook to 49.8–50%, compared with its previous guidance of 48.3–48.5%. Adjusted operating income is expected to reach $413–$420 million, up 15–17%, while adjusted earnings per share are projected at $5.25–$5.35.
President and CFO Joe Alkire said the company is increasing investment in its biggest growth opportunities while sharpening its portfolio focus.
Kontoor also said its planned divestiture remains on track for completion in the fourth quarter. The company intends to use $400 million from the sale to accelerate its share repurchase programme, signalling continued confidence in its long-term strategy.
