| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 84 | 13.9x | 17.8x | Top tier | |
Growth | 68 | 50.3% | 7.1% | Top tier | |
Quality | 92 | 17.6% | 4.5% | Top tier | |
Safety | 64 | 2.1x | 2.6x | Around median | |
Capital Return | 70 | 3.17% | 2.12% | Top tier | |
Momentum | 46 | 15.9% | 2.9% | Around median | |
Sentiment | 35 | 6 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Kontoor Brands owns a portfolio of apparel and lifestyle brands led by Wrangler and Helly Hansen, while proceeding with the sale of Lee, which is expected to be completed in fiscal Q4 2026. Wrangler generates revenue from jeans, western wear, and non-denim categories through wholesale and direct-to-consumer channels, while Helly Hansen operates in sportswear and workwear through stores, e-commerce, and distribution partners. Following the sale of Lee, the company intends to focus its investments on expanding Wrangler’s women’s and direct-to-consumer categories and growing Helly Hansen geographically and across outdoor activities and workwear.
Fiscal Q2 2026 revenue was approximately $584.3 million, gross profit was $328.3 million, net income was $64.8 million, and earnings per share were $1.17, according to EDGAR filings. Based on the published financial statements, gross profit was approximately 56.2% of revenue, compared with revenue of $613.3 million, gross profit of $329.4 million, and net income of $92.4 million in fiscal Q1 2026. For the twelve months ended in the latest period, the company recorded revenue of $3.1 billion, gross profit of $1.5 billion, and net income of $277 million.
On the adjusted basis presented by management, the company generated revenue of $1.2 billion in the first half of fiscal 2026, up 31%, a gross margin of 52.2%, up 590 basis points, and adjusted earnings per share of $2.12, up 36%. In fiscal Q2 2026, global Wrangler revenue grew 1%, supported by 12% direct-to-consumer growth, while Helly Hansen revenue was approximately $114 million and grew 6% on a pro forma basis; Helly Hansen revenue was divided between $70 million from Sport and $37 million from Workwear. The company’s adjusted gross margin was 53.8%, up 710 basis points, while selling, general, and administrative expenses of $221 million represented approximately 37.8% of revenue.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $106 and a wide range of $80 to $136; the average is above the 52-week high of $88.96, while the highest target exceeds that high by a substantial margin. No published price-to-earnings ratio is available in the data, so the valuation rests on the company’s ability to deliver adjusted earnings per share of $5.25–$5.35 in fiscal 2026, improve Helly Hansen, and neutralize the impact of the Lee sale; conversely, the wide target range reflects risks from stranded costs, tariffs, and slower margin expansion in the second half.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Kontoor Brands recorded revenue of $584.3 million, gross profit of $328.3 million, and net income of $64.8 million according to EDGAR filings. On an adjusted basis, gross margin was 53.8%, up 710 basis points, driven by Project Genius benefits, Helly Hansen’s contribution, and improved channel, product, and pricing mix. Global Wrangler revenue grew 1%, while Helly Hansen revenue was approximately $114 million and grew 6% on a pro forma basis. Helly Hansen generated a positive operating profit of $2 million in its seasonally smallest quarter.
The company expects fiscal 2026 revenue of $2.66–$2.71 billion and second-half revenue of $1.46–$1.51 billion. It raised its adjusted gross margin range to 49.8%–50.0%, representing annual expansion of 330–350 basis points. It also raised its adjusted earnings per share outlook to $5.25–$5.35, representing growth of 27%–29%, and expects adjusted operating income of $413–$420 million. The outlook includes $25 million of additional investments in brand building and growth capabilities.
Global Wrangler revenue increased 1% in fiscal Q2 2026, supported by 12% direct-to-consumer growth, while this channel grew 9% in the United States. The women’s category delivered double-digit growth in the quarter and grew 20% during the first half, while the western category increased at a low-double-digit rate during the first half. Wrangler launched TufLite material in July 2026 for Cowboy Cut pants that weigh up to 20% less and began expanding its distribution to Lowe's. Management expects mid-single-digit growth for the brand in the second half of fiscal 2026 without assuming an improvement in the consumer environment or retail inventory.
Helly Hansen revenue was approximately $114 million in fiscal Q2 2026, including $70 million from Sport and $37 million from Workwear. Reported pro forma revenue grew 12% in the first half, with operating margin expanding by approximately 600 basis points to 7%. Management is targeting a mid-teens operating margin for the brand, benefiting from sourcing, logistics, pricing, and a higher proportion of full-price sales. In October 2026, the brand’s products are scheduled to be introduced at 18 Dick's Sporting Goods House of Sport locations.
Kontoor Brands expects to complete the sale of Lee in fiscal Q4 2026 and then use most of the net proceeds to initiate a $400 million accelerated share repurchase. Continuing operations carry approximately $40 million of stranded costs, equivalent to roughly $0.55 per share, which management is targeting to eliminate within 12–18 months. Lee’s current operating contribution is estimated at approximately $0.90 per share, and the company seeks to offset it through share repurchases, debt repayment, and growth in Wrangler and Helly Hansen. Management says the sale’s impact on earnings per share should become immaterial within 12–18 months, but achieving that depends on executing the cost actions and capital allocation as planned.
Fiscal Q2 2026 showed an 11.2% year-over-year revenue decline according to the earnings release, despite strong margins and adjusted earnings per share. The wholesale business faces retailer caution, as their inventories declined by high-single-digit or low-double-digit percentages in some parts of the market, while U.S. Wrangler wholesale growth remained nearly flat. In addition, 10% Section 301 tariffs apply to most sourcing countries and 12.5% tariffs apply to China and Vietnam since July 2026. This is compounded by the execution risk of the Lee sale and the elimination of approximately $40 million of stranded costs within the targeted 12–18-month period.
