On a down day for the market due to uncertainty from the war in Iran, Kontoor Brands (KTB +0.45%) was a rare winner after it reported better-than-expected fourth-quarter results.
Kontoor, which was previously owned by V.F. Corp, owns lifestyle and workwear brands like Wrangler, Lee, and Helly Hansen, the last of which it acquired from Canadian Tire in June 2025.
Kontoor easily beat estimates on the top and bottom lines and impressed with its 2026 guidance. As of 12:35 p.m. ET, the stock was up 18.4%.
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Kontoor impresses in a difficult market
Kontoor's revenue jumped 46% in the quarter to $1.02 billion, beating estimates at $976.2 million, with much of the increase driven by the Helly Hansen acquisition. On an organic basis, which excludes the acquisition and foreign currency changes, Kontoor reported 9.3% revenue growth.
That was driven by Wrangler, whose revenue was up 12% to $561.9 million, while Lee returned to growth, up 2% to $198.1 million.
Results were also strong on the bottom line as Wrangler's operating profit jumped 22% to $128.6 million. Lee fell as a result of investments in the brand, and management called 2026 a transition year for Lee.
Overall, adjusted operating income of $150 million, up from 48% a year ago, and adjusted earnings per share rose 26% to $1.73, which beat expectations at $1.64.
CEO Scott Baxter said, "2025 was a transformational year for Kontoor, highlighted by the acquisition of Helly Hansen, strong growth in Wrangler and disciplined execution."
NYSE: KTB
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What's next for Kontoor
Kontoor's guidance was also ahead of the Wall Street view as it sees revenue of $3.4 billion-$3.45 billion, which represents growth of 9%, or 11% excluding the impact of the prior year, and compares to the consensus at $3.45 billion. That includes about five months of new revenue from the Helly Hansen deal.
On the bottom line, it sees adjusted EPS of $6.40-$6.50, which is an increase of 15%-16%, ahead of expectations at $5.96.
Overall, the future looks bright for Kontoor after the last update, as the apparel stock trades at a forward P/E of just around 12.
