Kontoor Brands, which owns well-known denim and outerwear labels, reported second-quarter revenue of $584m, marking a 19% increase over the same period last year.
Growth was aided by the inclusion of Helly Hansen, acquired in mid-2025, as well as steady demand for Wrangler apparel, according to a company statement.
Wrangler's global revenues for the period reached $469m, up 2% year-on-year. The brand saw a 9% jump in its US direct-to-consumer business, while international revenues rose by 10%, buoyed by a 31% surge in direct-to-consumer and growth in wholesale channels.
Helly Hansen, which contributed $114m in global sales for the quarter, also posted double-digit pro-forma revenue growth in the first half of 2026, the company said.
The outerwear label’s performance exceeded internal expectations, contributing to what Kontoor described as "significant profitability improvement."
Gross margin increased sharply, up 970 basis points to 56.2% on a reported basis, and 710 basis points to 53.8% on an adjusted basis, which the company attributed to the benefits of its multi-brand strategy, favourable product and channel mix, and acquisitions.
Its operating income on an adjusted basis climbed 19% to $94m, with the adjusted operating margin inching up to 16%.
The company closed the quarter with $58m in cash and $1.1bn in long-term debt.
Kontoor Brands CEO and board of directors chairman Scott Baxter said: “Our second quarter results were driven by growth from Wrangler, a stronger-than-expected contribution from Helly Hansen and robust gross margin expansion.
“Wrangler delivered another quarter of diversified growth led by strong performance in female, direct-to-consumer and international, coupled with exceptional profitability and cash generation. Helly Hansen delivered a better-than-expected quarter and for the first half of 2026, delivered double-digit revenue growth on a pro-forma basis and significant profitability improvement fuelled in part by the benefits of our multi-brand platform."
Kontoor Brands’ FY26 outlook
For the full year, Kontoor anticipates revenue to fall between $2.66 and $2.71bn, up 12 to 13% year-on-year.
The company raised its adjusted gross margin outlook in the 49.8 to 50% range, significantly higher than previous guidance of 48.3 to 48.5%.
It expects adjusted operating income to rise to $413–$420m, marking a 15 to 17% growth compared to prior year. The company sees full-year adjusted EPS rising to $5.25–$5.35.
Kontoor Brands president and chief financial officer Joe Alkire added: "As we look ahead, we are sharpening our portfolio focus and increased investment on our largest growth opportunities. We are raising our full year outlook based on the strength we have seen in our year-to-date results, and our confidence and visibility as we enter the second half of the year.”
In May this year, Kontoor Brands entered into a definitive agreement to divest its Lee business to Authentic Brands Group (Authentic) for a total value of up to $1bn.
The company said the divestiture remains on track for completion in the fourth quarter, with Kontoor Brands planning to channel $400m from the sale into an accelerated share repurchase programme, as the company confirmed ongoing confidence in its strategy.
