--- title: "Kontoor Brands | 8-K: FY2027 Q1 Revenue Misses Estimate at USD 613.32 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285533481.md" datetime: "2026-05-07T10:53:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285533481.md) - [en](https://longbridge.com/en/news/285533481.md) - [zh-HK](https://longbridge.com/zh-HK/news/285533481.md) --- # Kontoor Brands | 8-K: FY2027 Q1 Revenue Misses Estimate at USD 613.32 M Revenue: As of FY2027 Q1, the actual value is USD 613.32 M, missing the estimate of USD 812.1 M. EPS: As of FY2027 Q1, the actual value is USD 1.09, missing the estimate of USD 1.3857. EBIT: As of FY2027 Q1, the actual value is USD 104.01 M. #### Segment Revenue - **Total Revenue (including discontinued operations):** Kontoor Brands, Inc. reported $808 million for Q1 2026 . - **Revenue from continuing operations:** The company’s revenue from continuing operations was $613 million for Q1 2026, marking a 45% increase compared to the prior year . - **Revenue from Lee (discontinued operations):** Revenue from the Lee business, classified as discontinued operations, was $195 million for Q1 2026, compared to $199,900 thousand for Q1 2025 . - **Wrangler brand global revenue:** Global revenue for the Wrangler brand reached $435,839 thousand for Q1 2026, a 4% increase (2% on a constant currency basis) compared to the prior year . Wrangler U.S. revenue increased 1% to $373,749 thousand, while Wrangler international revenue grew 20% to $62,090 thousand for Q1 2026 . - **Helly Hansen global revenue:** Global revenue for Helly Hansen was $165,480 thousand for Q1 2026, with U.S. revenue at $36,154 thousand and International revenue at $129,326 thousand . - **Other revenues (continuing operations):** Other revenues from continuing operations were $12,003 thousand for Q1 2026, representing a 336% increase compared to the prior year . #### Operational Metrics - **Net income:** Net income for Q1 2026 was $92,439 thousand, a 116% increase from $42,882 thousand in Q1 2025 . - **Income from continuing operations:** Income from continuing operations was $61,038 thousand for Q1 2026, a 496% increase compared to $10,249 thousand for Q1 2025 . - **Income from discontinued operations, net of tax:** This figure was $31,401 thousand for Q1 2026, reflecting a -4% decrease from $32,633 thousand for Q1 2025 . - **Gross margin from continuing operations:** Reported gross margin increased 810 basis points to 53.7% for Q1 2026, while adjusted gross margin increased 470 basis points to 50.6% . - **Selling, General & Administrative (SG&A) expenses from continuing operations:** Reported SG&A expenses were $239,269 thousand, or 39.0% of revenue, for Q1 2026, a 48% increase from $161,365 thousand for Q1 2025. Adjusted SG&A expenses were $223,703 thousand, or 36.5% of revenue . - **Operating income from continuing operations:** Reported operating income was $90,105 thousand for Q1 2026, a 187% increase from $31,369 thousand for Q1 2025. Adjusted operating income was $86,803 thousand for Q1 2026, a 60% increase from $54,199 thousand for Q1 2025 . - **Interest expense:** Interest expense was - $16,084 thousand for Q1 2026, a 64% increase compared to - $9,808 thousand for Q1 2025 . - **Other expense, net:** Other expense, net, was - $2,602 thousand for Q1 2026, a -75% decrease compared to - $10,293 thousand for Q1 2025 . #### Cash Flow - **Cash provided by operating activities:** Cash provided by operating activities was $46,261 thousand for Q1 2026, compared to $77,625 thousand for Q1 2025 . - **Property, plant and equipment expenditures:** These expenditures were - $5,963 thousand for Q1 2026, compared to - $2,732 thousand for Q1 2025 . - **Capitalized computer software:** Capitalized computer software amounted to - $2,383 thousand for Q1 2026, compared to - $1,530 thousand for Q1 2025 . - **Cash provided (used) by investing activities:** Cash provided by investing activities was $3,905 thousand for Q1 2026, compared to - $4,762 thousand for Q1 2025 . - **Repurchases of Common Stock:** Repurchases of common stock totaled - $25,000 thousand for Q1 2026, compared to - $0 for Q1 2025 . - **Dividends paid:** Dividends paid were - $29,339 thousand for Q1 2026, compared to - $28,824 thousand for Q1 2025 . - **Cash used by financing activities:** Cash used by financing activities was - $69,493 thousand for Q1 2026, compared to - $37,876 thousand for Q1 2025 . #### Unique Metrics - **Share Repurchase Authorization:** Kontoor Brands, Inc.’s Board of Directors authorized a new share repurchase program of up to $750 million of the company’s common stock, replacing the previous program . During Q1 2026, the company repurchased $25 million of common stock . - **Dividend:** A regular quarterly cash dividend of $0.53 per share was declared, payable on June 18, 2026 . - **IEEPA Tariffs:** The company expects to recover previously paid IEEPA tariffs, recognizing a net receivable of $54 million as of March 2026, which resulted in a $49 million reduction in cost of goods sold for Q1 2026 . #### Outlook / Guidance (Full Year 2026) Kontoor Brands, Inc. raised its full-year 2026 outlook, projecting total revenue between $3.41 billion and $3.46 billion, with continuing operations revenue expected to be $2.66 billion to $2.71 billion . Adjusted EPS from continuing operations is anticipated to be $5.15 to $5.25, and adjusted operating income is expected to be $411 million to $418 million . The company also expects cash from operations to be around $450 million and aims for a net leverage ratio below 1.5 times on a continuing operations basis by year-end . ### Related Stocks - [KTB.US](https://longbridge.com/en/quote/KTB.US.md) ## Related News & Research - [Kontoor to sell Lee denim brand to Reebok owner Authentic in up to $1 billion deal](https://longbridge.com/en/news/287209765.md) - [07:00 ETAuthentic Brands Group Signs Definitive Agreement to Acquire Lee®](https://longbridge.com/en/news/287206444.md) - [PNC Financial Services Group Inc. Lowers Position in Kontoor Brands, Inc. $KTB](https://longbridge.com/en/news/287039656.md) - [Broadridge Announces Closing of $500 Million Senior Notes Offering | BR Stock News](https://longbridge.com/en/news/286611082.md) - [XP Inc. Reports First Quarter 2026 Results | XP Stock News](https://longbridge.com/en/news/286814239.md)