Abstract

Kontoor Brands, Inc. will report quarterly results on March 03, 2026 Pre-Market, with investors watching for revenue of 979.05 million and adjusted EPS of 1.65, while attention centers on brand execution, operating leverage, and the dividend cadence.

Market Forecast

Consensus for Kontoor Brands, Inc. points to revenue of 979.05 million, up 40.36% year over year, and adjusted EPS of 1.65, up 23.03% year over year; forecasts also imply EBIT of 131.92 million, rising 24.82% year over year, while margin guidance has not been formally set in the company’s last update. The company’s prior report positions Wrangler as the core driver heading into the quarter, with stable sell-throughs and disciplined merchandising providing visibility on channel replenishment and a supportive product mix. The most promising segment is Lee, which delivered 186.74 million last quarter within a quarter where total revenue advanced 27.31% year over year, and is set up to benefit from targeted assortments and expansion across key categories.

Last Quarter Review

Kontoor Brands, Inc. delivered revenue of 853.22 million, up 27.31% year over year, gross profit margin of 45.78%, GAAP net profit attributable to the parent company of 36.94 million, net profit margin of 4.33%, and adjusted EPS of 1.44, up 5.11% year over year. Quarter-on-quarter net profit decreased by 49.99%, reflecting seasonality and investment timing, while EBIT of 121.86 million topped estimates by 6.08%, indicating effective cost control against strong sell-through. Wrangler contributed 471.23 million and Lee added 186.74 million, alongside Other at 9.31 million, in a quarter where consolidated revenue rose 27.31% year over year, underscoring the brands’ product and price architecture resilience.

Current Quarter Outlook (with major analytical insights)

Wrangler: Core engine supported by channel replenishment and mix discipline

Wrangler enters the quarter with the momentum of last quarter’s 471.23 million contribution and a solid baseline of merchandising execution that has been central to its performance. The brand’s lineup is expected to lean into proven fits and washes while maintaining a thoughtful balance of promotions and full-price placements, helping protect gross margin after the 45.78% level recorded last quarter. Wholesale partners should continue to normalize inventory around core replenishment units, creating smoother reorders through the period and limiting volatility in any single retail channel. The upcoming spring assortments and event-based drops can create incremental traffic, and where distribution is broad, consistent stock-to-sales ratios are a key signal to watch for pacing. With consensus revenue at 979.05 million (+40.36% year over year) and EPS at 1.65 (+23.03% year over year), the degree to which Wrangler captures its planned sell-through, while avoiding excess promotional activity, will be central to preserving leverage in the gross-to-operating margin bridge. Operationally, freight and sourcing normalization remain supportive for throughput, and execution that keeps return rates and markdowns in check should help EBIT track toward the 131.92 million forecast (+24.82% year over year).

Lee: Targeted category and geographic expansion poised to lift throughput

Lee delivered 186.74 million last quarter and continues to offer room to scale through tighter category focus and a disciplined direct touchpoint strategy. A measured expansion centered on specific cuts and silhouettes that consistently clear in-season can lift conversion with minimal inventory risk, particularly where the brand can leverage repeatability in core fits. The brand’s ability to present refreshed visuals and storytelling around enduring product families is relevant to sell-through and pricing power, and in this cycle it is likely to favor observable carryover items that avoid speculative production. As Kontoor Brands, Inc. moves through a quarter with consensus expecting a 40.36% year-over-year revenue increase, Lee’s contribution will be noticed most in its efficiency—keeping localized assortments aligned to channel patterns so weeks of supply remain calibrated, preventing stockouts or overhangs. This, combined with operational controls similar to those that supported a 45.78% gross margin last quarter, should aid in offsetting fixed-cost absorption and support EPS trajectory toward 1.65 (+23.03% year over year). The brand’s channel mix—particularly areas where the company can directly influence merchandising and replenishment cadence—can also enhance profitability by reducing reliance on broad-based promotions and favoring curated, margin-accretive flows.

Key stock price drivers: Revenue trajectory, earnings quality, and capital returns

Investors will focus on the headline revenue figure relative to the 979.05 million consensus and any commentary that shapes the full-quarter run rate in the weeks after the print, as the top line sets the foundation for the operating leverage implied in the EBIT forecast of 131.92 million (+24.82% year over year). Earnings quality matters: the mix of gross margin drivers, selling expense discipline, and inventory health will inform how much of the EPS forecast at 1.65 (+23.03% year over year) is repeatable versus contingent on one-off factors. The company’s dividend continuity also plays into sentiment—on February 13, 2026, Kontoor Brands, Inc. kept its quarterly dividend at $0.53 per share, payable on March 20 to shareholders of record on March 10—reinforcing confidence in cash generation and a disciplined capital return framework. On guidance, the degree of precision around revenue pacing and margin guardrails will likely influence reactions, especially if management quantifies a path that aligns with maintaining a net profit margin consistent with last quarter’s 4.33% while supporting reinvestment. The distribution of growth across Wrangler and Lee, with visible signs of replenishment and product freshness without over-promotion, will be monitored closely as a proxy for durability of the revenue and EBIT beats or misses. Finally, commentary on inventory positioning relative to sell-through and any signals around sourcing, inbound freight, or working capital timing could frame how investors extrapolate earnings quality beyond the current quarter.

Analyst Opinions

Bullish views dominate the collected period, with analysts polled by FactSet showing an average rating of overweight for Kontoor Brands, Inc. and a mean price target of $84.56 as of February 04, 2026; bearish calls were absent in our time window, making the majority stance supportive of the stock into the quarter. The bullish case hinges on the expectation that revenue of 979.05 million (+40.36% year over year) will be paired with healthy earnings quality, translating to adjusted EPS of 1.65 (+23.03% year over year) and EBIT of 131.92 million (+24.82% year over year). Supporters point to brand-led execution where Wrangler remains the core engine and Lee contributes incremental scalability through targeted assortments and efficient replenishment cycles, helping protect margin and stabilize operating leverage. The dividend continuity at $0.53 per share announced on February 13, 2026 is cited as a signal of confidence in ongoing cash generation, which in turn allows the company to balance reinvestment and shareholder returns without stretching its operating framework. Bulls also emphasize last quarter’s 45.78% gross margin as a credible baseline from which the company can manage promotions and mix, indicating that the margin structure can accommodate revenue growth without excessive dilution. The majority view further expects management to guide with clarity around pacing and cost dynamics, with emphasis on normalizing freight and sourcing conditions that improve predictability in the margin bridge. If the company delivers on the top line while reporting tight inventory control and controlled selling expenses, the overweight-leaning stance is likely to remain intact, and the mean price target near $84.56 may be revisited contingent on revenue quality and forward commentary. In summary, the prevailing institutional perspective is constructive: deliver the anticipated revenue ramp with measured promotional intensity, sustain margin discipline, and reaffirm capital return, and the stock should be positioned well in the wake of the report.