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For the quarter ended July\u00a04,\u00a02026, revenue from continuing operations increased 19 per cent year on year (YoY) to $584 million, supported by $114 million in Helly Hansen revenue and 2 per cent growth in Wrangler. Adjusted operating income rose 19 per cent to $94 million, while adjusted gross margin expanded by 710 basis points to 53.8 per cent.<\/p>\n
American apparel and workwear group Kontoor Brands reported a 19 per cent YoY rise in Q2 FY26 revenue to $584 million, supported by Helly Hansen and Wrangler growth.
\nAdjusted operating income increased 19 per cent to $94 million, while EPS rose 13 per cent to $1.06.
\nThe company raised its FY26 outlook, projecting revenue of $2.66\u20132.71 billion and higher adjusted EPS. <\/p>\n
Adjusted diluted earnings per share (EPS) from continuing operations climbed 13 per cent to $1.06,\u00a0Kontoor Brands said in a press release.<\/p>\n
\u201cOur second quarter results were driven by growth from Wrangler, a stronger-than-expected contribution from Helly Hansen and robust gross margin expansion,\u201d said Scott Baxter, chief executive officer and chairman, Kontoor Brands<\/em><\/strong>.<\/p>\n Wrangler delivered another quarter of diversified growth led by strong performance in female, direct-to-consumer (DTC) 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,\u201d added\u00a0Baxter.<\/em><\/strong><\/p>\n Helly Hansen contributed $114 million to Q2 revenue, surpassing expectations, while Wrangler global revenue reached $469 million, up 2 per cent YoY. Wrangler\u2019s US revenue grew 1 per cent, led by a 9 per cent increase in DTC sales, while international revenue rose 10 per cent, driven by a 31 per cent jump in DTC and 7 per cent growth in wholesale.<\/p>\n Helly Hansen\u2019s sport and workwear segments generated $70 million and $37 million, respectively, and the Musto brand contributed $7 million. International revenues more than doubled, reflecting the impact of the Helly Hansen acquisition.<\/p>\n Reported gross margin from continuing operations increased by 970 basis points to 56.2 per cent, while adjusted gross margin improved to 53.8 per cent, up 710 basis points from the prior year, benefiting from the Helly Hansen acquisition, favourable channel and product mix, and pricing. Adjusted operating income rose 19 per cent to $94 million, representing a 16 per cent margin.<\/p>\n Adjusted EBITDA from continuing operations reached $103 million, or 17.6 per cent of revenue. Adjusted selling, general and administrative expenses increased due to the integration of Helly Hansen and higher investments in DTC, demand creation and technology.<\/p>\n Kontoor Brands raised its FY26 outlook, now expecting adjusted EPS from continuing operations in the range of $5.25 to $5.35, up from the previous range of $5.15 to $5.25, representing 27 to 29 per cent growth over the prior year. Adjusted gross margin is forecast at 49.8 to 50.0 per cent, an increase of 330 to 350 basis points.<\/p>\n Revenue is projected to be between $2.66 billion and $2.71 billion, up 12 to 13 per cent YoY. The company expects adjusted operating income of $413 million to $420 million, capital expenditure of $30 million, and a net leverage ratio below 1.5 times by year-end.<\/p>\n Looking forward, Kontoor Brands remains focused on executing its multi-brand strategy, investing in growth opportunities and driving long-term value creation, supported by a strengthened balance sheet and improved profitability. The company continues to monitor tariff developments and expects further contributions from Helly Hansen and the ongoing transformation of its portfolio, addedd the release.<\/p>\n \u201cAs 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,\u201d said\u00a0Joe Alkire, president and chief financial officer, Kontoor Brands<\/em><\/strong>.<\/p>\n
<\/p>\n Fibre2Fashion News Desk<\/p>\n
\n <\/p><\/div>\n\tHelly Hansen acquisition and Wrangler drive revenue growth<\/strong><\/h3>\n
\tMargin expansion and profitability improvements<\/strong><\/h3>\n
\tGuidance for FY26<\/strong><\/h3>\n