Kontoor Brands has reported significant growth results in the first quarter of  2026. It reported its financial results for its first quarter ended April 4, 2026.

During the first quarter of 2026, the company initiated a competitive process to divest the Lee business. The process has attracted interest from multiple parties and the company anticipates entering into a definitive agreement to divest the Lee business in 2026. As a result, Kontor Brands has reported the results of the Lee business in discontinued operations.

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 expenses through restructuring and other mitigating cost actions to offset the costs that were previously allocated to the Lee business.

“Our strong first quarter results reflect the power of our operating model combined with strong execution,” said Scott Baxter, President, CEO, and Chairman of the 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 as we align the Kontoor brand portfolio to a higher growth profile,” he added.

Revenues from the first quarter, including the contribution from discontinued operations was US$808 million.

First quarter revenue from continuing operations Wrangler and Helly Hansen registered US$613 million exceeding expectations driven by 4% growth for Wrangler and 16% growth for Helly Hansen. Differently revenues from Lee were US$195 million now reported in discontinued operations.

The full year revenue outlook, including the contribution from discontinued operations, is now expected to be in the range of US$3.41 to US$3.46 billion. Expected revenue from Lee will be approximately US$750 million now reported in discontinued operations. Full year revenue outlook from continuing operations is now expected to be in the range of US$2.66 to US$2.71 billion driven by growth in Wrangler and Helly Hansen.

“Our updated outlook reflects better than expected first quarter results and improving visibility for Wrangler and Helly Hansen,” added Joe Alkire, Kontoor Brands’ executive vice president, chief financial officer and global head of operations.

“Our planned divestiture of the Lee business is in an advanced state and has attracted interest from multiple parties. We are confident in our ability to successfully complete a transaction this year, resulting in significantly more capital allocation optionality and accelerated growth as we drive enhanced shareholder returns into 2027 and beyond,” he added.