Kontoor Brands, Inc. is strengthening its growth momentum as rising demand for Wrangler and Helly Hansen helped drive a strong second quarter of fiscal 2026. The apparel and lifestyle company reported revenue of $584 million for the quarter, up 19% year over year, as continued brand momentum, stronger direct-to-consumer sales and the growing contribution of Helly Hansen supported performance.
The latest results reinforce Kontoor’s strategic shift toward its two core growth platforms, Wrangler and Helly Hansen, following its decision to divest the Lee business. Kontoor acquired Helly Hansen in 2025, adding a global outdoor and workwear brand to its portfolio and reducing its reliance on traditional denim.
The company has subsequently identified Wrangler and Helly Hansen as the primary drivers of its long-term growth strategy. Kontoor’s first-quarter results had already shown the impact of this strategy, with continuing-operations revenue reaching $613 million and Wrangler and Helly Hansen delivering broad-based growth.
Wrangler remained the company’s largest contributor, generating $469 million in global revenue during the second quarter, an increase of 2% from the prior year. The brand’s direct-to-consumer business was particularly strong, with U.S. DTC sales rising 9% and international DTC sales jumping 31%.
The performance reflects Wrangler’s continued expansion beyond its traditional wholesale base and growing consumer engagement through company-operated stores and e-commerce channels. In the first quarter, Wrangler’s global DTC revenue had already increased 11%, while international wholesale revenue rose 17%, highlighting the brand’s sustained momentum across multiple channels.
Helly Hansen contributed $114 million in global revenue in the second quarter, further demonstrating the importance of the outdoor and workwear business to Kontoor’s evolving portfolio.
Also Read : Shin Shin Group’s Jeans Plus Ltd Achieves LEED Platinum Status
Within the brand, Sport generated $70 million and Workwear contributed $37 million. The performance builds on the strong growth reported following the acquisition, when Helly Hansen delivered $165.5 million in first-quarter revenue and became a major contributor to Kontoor’s continuing operations.
Profitability also improved significantly. Kontoor reported a 970-basis-point expansion in gross margin, reflecting the benefits of product and channel mix, operational improvements and the increasing contribution from higher-margin businesses.
The company has previously highlighted its Project Jeanius cost-efficiency initiative and the favorable margin impact of Helly Hansen as important factors supporting profitability. In the first quarter, adjusted gross margin from continuing operations reached 50.6%, up 470 basis points year over year.
Chief Executive Officer Scott Baxter raised the company’s full-year adjusted earnings-per-share outlook to $5.25-$5.35, representing growth of approximately 27%-29%. Kontoor now expects fiscal 2026 revenue from continuing operations to reach $2.66 billion-$2.71 billion, while adjusted gross margin is projected at 49.8%-50.0% and adjusted operating income at $427 million-$435 million.
Also Read : J.Jill Expands Denim Offering, Making Fit a Key Growth Focus
The stronger outlook reflects continued momentum from Wrangler, the expansion of Helly Hansen and ongoing operational improvements. The company’s reshaping of its brand portfolio is also moving forward. Kontoor announced in May that it had entered into a definitive agreement to sell Lee to Authentic Brands Group, with the transaction expected to close in the second half of 2026.
Lee is now reported as a discontinued operation, allowing Kontoor to present its continuing business around Wrangler and Helly Hansen. Earlier guidance indicated Lee revenue of approximately $750 million for 2026, while continuing-operations revenue was projected at $2.66 billion-$2.71 billion.
Kontoor also plans to deploy proceeds from the Lee transaction toward shareholder returns, including a previously announced share-repurchase program. The company authorized a $750 million repurchase program in connection with its portfolio transformation and said the divestiture would provide additional capital-allocation flexibility while allowing greater focus on its higher-growth brands.
The results signal a broader transformation at Kontoor from a predominantly denim-focused company into a more diversified apparel, outdoor and workwear platform. Wrangler continues to provide scale, brand recognition and consistent market-share gains, while Helly Hansen gives Kontoor greater exposure to international outdoor, sport and technical workwear markets.
With Lee moving toward divestiture, the company is positioning its remaining portfolio around businesses it believes can deliver stronger growth, improved margins and greater long-term value.