Kontoor Brands, Inc. · NYSE:KTB
Kontoor Brands — Q1 2026 Earnings Presentation
17 slides from Kontoor Brands's earnings presentation, May 7, 2026
Slide 1: Kontoor Brands Reports Stronger 2026 First Quarter Results and Raises Outlook
May 7, 2026 Kontoor Brands Reports Stronger 2026 First Quarter Results and Raises Full Year Outlook; Announces Planned Divestiture of Lee and $750 Million Share Repurchase Program During the first quarter, the Company initiated a competitive process to divest the Lee business. As a result, the Compa
Slide 2: Planned Divestiture of the Lee Business
Board of Directors. “Wrangler drove another quarter of broad-based growth and market share gains, and Helly Hansen delivered better-than-expected revenue and profitability. Our decision to divest Lee enables sharper focus on the opportunities with greatest potential to maximize shareholder returns a
Slide 3: SG&A expenses and operating income
$239 million, or 39.0 percent of revenue on a reported basis. On an adjusted basis, SG&A expenses from continuing operations were $224 million, or 36.5 percent of revenue. The increase in SG&A expenses was driven by the impact of Helly Hansen, higher demand creation and direct-to-consumer investment
Slide 4: Tariff Update
through cash flow generated from operations and expected proceeds from the planned divestiture of the Lee brand. Tariff Update Following the U.S. Supreme Court’s decision that the International Emergency Economic Powers Act (“IEEPA”) does not authorize tariffs, the U.S. Court of International Trade
Slide 5: Updated 2026 Outlook
that were previously allocated to the Lee business. The Company expects the divestiture of Lee to be immaterial to earnings per share over a 12-to-18-month period. The earnings contribution of the Lee business will be offset through strong capital deployment and mitigation of overhead and other expe
Slide 6: Balance Sheet and Liquidity from Continuing Operations Review
The Company expects to make voluntary term loan payments of $225 million, excluding the impact of potential additional voluntary debt repayments with a portion of the expected proceeds from the planned divestiture of the Lee business. The Company expects to achieve a net leverage ratio below 1.5 tim
Slide 7: About Kontoor Brands
information needed to reconcile these measures is unavailable due to the inherent difficulty of forecasting the timing and/or amount of various items that have not yet occurred and have been excluded from adjusted measures. Additionally, estimating such GAAP measures and providing a meaningful recon
Slide 8: Risk Factors and Forward-Looking Statements
short-term or long-term financing on favorable terms; the Company maintaining satisfactory credit ratings; restrictions on the Company’s business relating to its debt obligations; increasing pressure on margins; e-commerce operations through the Company’s direct-to- consumer business; the financial
Slide 9: Condensed Consolidated Statements of Operations
KONTOOR BRANDS, INC. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended March % (Dollars and shares in thousands, except per share amounts) 2026 2025 Change Net revenues $ 613,322 $ 423,001 45% Costs and operating expenses Cost of goods sold 283,948 230,267 23% Selling, g
Slide 10: Condensed Consolidated Balance Sheets
KONTOOR BRANDS, INC. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) March 2026 December 2025 March 2025 ASSETS Current assets Cash and cash equivalents $ 56,411 $ 77,215 $ 320,790 Accounts receivable, net 244,996 209,419 131,958 Inventories 463,501 435,945 298,810 Prepaid expenses
Slide 11: Condensed Consolidated Statements of Cash Flows
KONTOOR BRANDS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March (in thousands) 2026 2025 OPERATING ACTIVITIES Net income $ 92,439 $ 42,882 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 15,338 9,63
Slide 12: Business Segment Information
KONTOOR BRANDS, INC. Supplemental Financial Information Business Segment Information (Unaudited) Three Months Ended March % Change Constant (Dollars in thousands) 2026 2025 % Change Currency (a) Segment revenues: Wrangler $ 435,839 $ 420,246 4% 2% Helly Hansen 165,480 — * * Total reportable segment
Slide 13: Reconciliation of Adjusted Financial Measures - Quarter-to-Date
KONTOOR BRANDS, INC. Supplemental Financial Information Reconciliation of Adjusted Financial Measures - Quarter-to-Date (Non-GAAP) (Unaudited) Three Months Ended March (Dollars in thousands, except per share amounts) 2026 2025 Net revenues - as reported under GAAP $ 613,322 $ 423,001 Contribution fr
Slide 14: Adjusted EBITDA from continuing operations
$ 106,654 $ 28,425 EBITDA from continuing operations Restructuring and transformation costs (b) 5,686 12,504 U.S. Customs 2025 tariffs (c) (21,696) — Acquisition and integration-related costs (d) 12,768 19,191 $ 103,412 $ 60,120 Adjusted EBITDA from continuing operations As a percentage of total net
Slide 15: Disaggregation of Revenue - Continuing Operations
KONTOOR BRANDS, INC. Supplemental Financial Information Disaggregation of Revenue - Continuing Operations (Unaudited) Three Months Ended March 2026 Revenues - As Reported (In thousands) Wrangler Helly Hansen Other Total Channel revenues U.S. Wholesale $ 339,098 $ 16,840 $ 1,605 $ 357,543 Internation
Slide 16: Summary of Select Revenue Information - Continuing Operations
KONTOOR BRANDS, INC. Supplemental Financial Information Summary of Select Revenue Information - Continuing Operations (Unaudited) Three Months Ended March 2026 2025 2026 to 2025 % Change % Change Constant (Dollars in thousands) As Reported under GAAP Reported Currency Wrangler U.S. $ 373,749 $ 368,3
Slide 17: Notes to Reconciliation of Adjusted and Adjusted Organic Financial Measures
KONTOOR BRANDS, INC. Supplemental Financial Information Reconciliation of Adjusted and Adjusted Organic Financial Measures - Notes (Non-GAAP) (Unaudited) Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures Management uses non-GAAP financia