Fashion
US’ Kontoor Brands’ posts strong Q1, plans Lee divestiture
Total revenue for the quarter ended March 2026, including discontinued operations, stood at $808 million. Revenue from continuing operations reached $613 million, supported by 4 per cent growth in Wrangler and 16 per cent growth in Helly Hansen on a pro-forma basis.
“Our strong first quarter results reflect the power of our operating model combined with strong execution,” said Scott Baxter, president, chief executive officer and chairman of Kontoor Brands. “Wrangler drove another quarter of broad-based growth and market share gains, and Helly Hansen delivered better-than-expected revenue and profitability.”
Kontoor Brands has posted stronger-than-expected Q1 FY26 results, driven by growth in Wrangler and Helly Hansen, and raised its full-year outlook.
Total revenue reached $808 million, while continuing operations generated $613 million.
The company plans to divest Lee, now treated as a discontinued operation.
Adjusted EPS guidance was raised to $6.6-6.7 for FY26.
Brand-wise, Wrangler global revenue increased 4 per cent year-on-year (YoY) to $436 million. Wrangler US revenue rose 1 per cent, aided by a 6 per cent rise in direct-to-consumer sales and a 1 per cent increase in wholesale revenue. International Wrangler revenue climbed 20 per cent, driven by strong direct-to-consumer and wholesale growth.
Helly Hansen generated $176 million in global revenue during the quarter, with sport and workwear segments contributing $120 million and $45 million respectively.
The gross margin from continuing operations on a reported basis improved 810 basis points to 53.7 per cent. Adjusted gross margin increased 470 basis points to 50.6 per cent, driven by the contribution from Helly Hansen, channel mix improvements and benefits from Project Jeanius, Kontoor Brands said in a press release.
Adjusted operating income from continuing operations rose 60 per cent YoY to $87 million, while adjusted earnings per share (EPS) from continuing operations reached $1.06. Total reported EPS, including discontinued operations, stood at $1.65.
The company said the Lee business is now being treated as discontinued operations after initiating a competitive divestiture process during Q1 2026. Kontoor expects to sign a definitive agreement for the sale in 2026, with multiple parties reportedly showing interest.
At the end of the quarter, Kontoor held $56 million in cash and cash equivalents and $1.14 billion in long-term debt. Inventory stood at $464 million, including Helly Hansen inventory.
The company additionally disclosed that it recognised a net receivable of $54 million linked to the expected recovery of tariffs previously paid under the US International Emergency Economic Powers Act (IEEPA), following a recent court ruling against the tariffs.
Raises FY26 Outlook
The company has raised its FY26 revenue outlook, including discontinued operations, to $3.41-3.46 billion from the earlier guidance of $3.40-3.45 billion. Revenue from continuing operations is expected between $2.66 billion and $2.71 billion.
Adjusted EPS guidance, including discontinued operations, has been revised upwards to $6.6-6.7 from the previous $6.4-6.5 range. Adjusted EPS from continuing operations is expected between $5.15 and $5.25.
“Our updated outlook reflects better than expected first quarter results and improving visibility for Wrangler and Helly Hansen,” said Joe Alkire, executive vice president, chief financial officer and global head of operations at Kontoor Brands.
Fibre2Fashion News Desk (SG)
The issue was discussed at a meeting in Hanoi between Minister of Industry and Trade Le Manh Hung and Canadian ambassador to Vietnam Jim Nickel.
Canada and Vietnam have agreed to further strengthen economic and trade ties as well as supply chain connectivity amid growing global uncertainties.
The issue was discussed at a meeting between Minister of Industry and Trade Le Manh Hung and Canadian ambassador to Vietnam Jim Nickel, who highlighted Vietnam’s growing role in global supply chains.
The two sides discussed talks on the ASEAN-Canada FTA.
Bilateral trade has doubled over the past four years, rising by 18.8 per cent year on year to $8.6 billion in 2025.
Nickel highlighted Vietnam’s growing role in global supply chains, describing the country as a reliable supplier of goods to Canada which, in turn, has strengths in energy, critical minerals and agricultural products, according to a Vietnamese media outlet.
The ambassador also commended on Vietnam’s role as chair of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in 2026, host of the Asia-Pacific Economic Cooperation (APEC) forum in 2027, and its ASEAN rotating chairmanship later.
The two sides agreed to work closely on preparations for the third meeting of the Vietnam-Canada Joint Economic Committee and a bilateral business forum scheduled for early June 2026 in Canada.
The Vietnamese minister stressed that both countries’ participation in the CPTPP has generated practical benefits, helping boost trade, investment, business connectivity and supply chain linkages.
The two sides discussed negotiations on the ASEAN-Canada Free Trade Agreement (ACAFTA). Hung expressed confidence that once concluded and signed, the agreement will create fresh momentum for economic, trade and investment cooperation between the Association of Southeast Asian Nations and Canada.
Fibre2Fashion News Desk (DS)
The MoU was signed by BGMEA vice president Vidiya Amrit Khan and Jose Manuel Caballero, managing director of the company.
BGMEA and Spain-headquartered IVY Decarb Marketplace SL have signed an MoU to strengthen collaboration on industrial decarbonisation, productivity improvement and sustainable machinery transition in Bangladesh’s textile and garment sector.
Both sides will work to introduce decarbonisation methodologies to BGMEA members, and support the sector in exploring advanced, energy-efficient industrial machinery.
Under the collaboration, both sides will jointly work to introduce decarbonisation methodologies to BGMEA member factories, and support the sector in exploring advanced, energy-efficient industrial machinery, BGMEA said in a Facebook post.
The partnership will also focus on validating and strengthening IVY Decarb’s methodology for measuring productivity and sustainability impacts from textile machinery replacement.
Through this collaboration, BGMEA aims at supporting its member factories in accessing knowledge, tools and practical pathways for machinery modernisation, improved efficiency and measurable climate impact.
Fibre2Fashion News Desk (DS)
India’s path to becoming America’s strategic apparel base is open again, but the runway is short and conditional. TexPro data shows US apparel imports from India closed **** at $*.*** billion (+*.**% YoY), a headline that masks a violent two-half story. H* **** surged on tariff front-loading ($*.*** billion); H* collapsed **.* per cent to $*.*** billion as the cumulative US tariff on Indian apparel hit ** per cent between August **, **** and February *, ****.
The February *, **** US-India interim framework cut the reciprocal rate to ** per cent, putting India below Vietnam (**%), Bangladesh (**%) and Indonesia (**%) for the first time. Then on February **, ****, the US Supreme Court struck down the IEEPA tariffs, which were replaced with a flat ** per cent Section *** surcharge that expires on July **, ****. The window is real. It is also closing fast.
US’ Kontoor Brands’ posts strong Q1, plans Lee divestiture
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Canada, Vietnam seek broader trade cooperation
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