Kontoor Brands beats Q2 2026 forecasts, raises full-year guidance

Kontoor Brands Inc. on Tuesday reported adjusted earnings per share that exceeded analysts' expectations for the second quarter of 2026, while also raising its full-year guidance.

The jeans-focused apparel company posted adjusted EPS of $1.85, topping the $1.72 consensus estimate compiled by Refinitiv, according to a transcript of its earnings call. Revenue for the quarter rose 6% year-over-year to $742 million, surpassing the $720 million forecast.

Gross margin expanded to 42.1% from 40.8% in the same period last year, driven by pricing power and cost efficiencies. Operating income climbed 8% to $145 million, while net income increased 10% to $102 million.

For the full year, Kontoor raised its adjusted EPS guidance to a range of $6.50 to $6.70, up from the prior range of $6.20 to $6.50. The company also increased its revenue outlook to $2.9 billion to $2.95 billion, from a previous forecast of $2.8 billion to $2.85 billion.

Management cited strong demand for its Lee and Wrangler brands, particularly in North America and international markets, as key drivers of the outperformance. The company also noted benefits from supply chain optimization and reduced promotional activity.

Kontoor Brands, which spun off from VF Corporation in 2019, said it remains on track to deliver its long-term financial targets, including mid-single-digit revenue growth and high-teens operating margin expansion by 2027.

Shares were indicated higher in after-hours trading following the results, reflecting investor confidence in the updated guidance and operational improvements.