Kontoor Brands Reports 2026 Second; Quarter Results and Raises Full Year; Outlook; Expects to Enter Into a $400; Million Accelerated Share Repurchase Agreement

About this update from Kontoor Brands, Inc.

Second Quarter Highlights * Revenue from continuing operations of $584 million increased 19 percent compared to prior year, driven by $114 million of Helly Hansen revenue, exceeding expectations, and 2 percent growth in Wrangler * Reported gross margin from continuing operations of 56.2 percent. Adjusted gross margin of 53.8 percent increased 710 basis points compared to prior year * Reported operating income from continuing operations of $91 million . Adjusted operating income of $94 million increased 19 percent compared to prior year * Reported Diluted EPS from continuing operations of $1.03 . Adjusted EPS of $1.06 increased 13 percent compared to prior year * Repurchased $50 million of common stock at $74 per share Other Key Highlights * Full year 2026 adjusted earnings per share from continuing operations is now expected to be in the range of $5.25 to $5.35 , reflecting 27 to 29 percent growth compared to prior year (prior outlook range $5.15 to $5.25 ) * Full year 2026 adjusted gross margin from continuing operations has strengthened and is now expected to be in the range of 49.8 to 50.0 percent, reflecting an increase of 330 to 350 basis points compared to prior year * Full year 2026 outlook includes approximately $25 million of incremental brand-building and other growth-enabling investments to further accelerate long-term growth * The Lee business divestiture is on track to close in the fourth quarter * Upon closing of the Lee business divestiture, the Company intends to deploy the expected proceeds into a $400 million Accelerated Share Repurchase agreement, with the remaining proceeds allocated towards voluntary debt payments * Expect to return more than $900 million of capital in 2026 through share repurchases, dividends and voluntary debt payments, including the proceeds from the Lee divestiture GREENSBORO, N.C- Kontoor Brands, Inc. (NYSE: KTB) today reported financial results for its second quarter ended July 4, 2026 See full release at: https://www.kontoorbrands.com/_assets/_2dc771929deb8e84fc92cecd00171982/kontoorbrands/news/2026-08-12_Kontoor_Brands_Reports_2026_Second_Quarter_241.pdf (C) 2026 Electronic News Publishing, source ENP Newswire

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