This filing provides no new guidance or current-period earnings — it only recasts FY2025 segment data to isolate the Lee business as discontinued. Monitor the Q2 2026 earnings release (expected in November) for the first full quarter showing the continuing-ops-only P&L and the post-Helly Hansen accretion trajectory. The pending Lee sale to Authentic Brands Group remains the key overhang; watch for regulatory clearance and close timing updates.
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Executive Summary
Kontoor Brands furnished supplemental financial information recasting fiscal 2025 results to present the Lee business as discontinued operations, ahead of its planned sale to an Authentic Brands Group affiliate for an undisclosed amount. The filing is purely historical recasting with no new forward guidance or current-quarter earnings — the data shows the remaining continuing operations generated $2.4B in revenue and $396.8M in adjusted EBITDA for FY2025, while the disposed Lee segment contributed $750.4M in revenue and $111.8M in adjusted EBITDA. This is a routine Regulation FD disclosure that does not change the current valuation outlook.
Key Facts
- Lee business reported as discontinued operations in recast FY2025 results — Lee generated $750.4M revenue and $111.8M adjusted EBITDA in FY2025
- Continuing operations (post-Lee) had FY2025 GAAP revenue of $2.402B and adjusted EBITDA of $396.8M (16.5% margin)
- Helly Hansen (acquired May 31, 2025) contributed $475.5M in FY2025 revenue on an adjusted basis
- Organic (ex-Helly Hansen) continuing operations revenue was $1.927B for FY2025, with adjusted organic diluted EPS of $3.79
- Adjusted diluted EPS from continuing operations was $4.14 for FY2025; total adjusted diluted EPS (incl. discontinued ops) was $5.59
- Long-term debt stood at $1.135B as of January 3, 2026, down from $1.367B at June 28, 2025
- Restructuring/transformation costs (Project Jeanius) totaled $80.6M for FY2025; acquisition/integration costs totaled $26.7M
Financial Impact
No material impact — historical recast only; FY2025 continuing ops GAAP revenue $2.402B, adj. EBITDA $396.8M; Lee discontinued ops FY2025 revenue $750.4M, adj. EBITDA $111.8M
Risk Factors
- Lee sale to Authentic Brands Group may not close on expected timeline or at all
- Integration risk from Helly Hansen acquisition — stranded costs from Lee disposition may pressure margins
- FY2026 organic continuing ops growth trajectory is unproven post-Lee divestiture (only ~$566M organic Q4 2025 revenue on ~1.93B full-year base)
- Debt load remains elevated at $1.135B post-term loan repayments; deleveraging depends on Lee proceeds and cash flow
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001760965-26-000051 |
| Document: ktb-20260805.htm | 0001760965-26-000051 |
| Document: 0001760965-26-000051-index-headers.html | 0001760965-26-000051 |
| Document: 0001760965-26-000051-index.html | 0001760965-26-000051 |
| Document: 0001760965-26-000051.txt | 0001760965-26-000051 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 29d ago | 8-K | $73.67 $66.62 | ▼ −9.57% | ▼ −8.42% | $64.73 (−12.14%) |
Aug 21, 2026 6w ago | Court Ruling | $82.01 $76.99 | ▼ −6.12% | ▼ −6.60% | $64.73 (−21.07%) |
Aug 18, 2026 6w ago | Insider Cluster | $82.17 $77.18 | ▼ −6.07% | ▼ −5.69% | $64.73 (−21.22%) |
Aug 17, 2026 6w ago | Insider Cluster | $82.30 $80.01 | ▼ −2.78% | ▼ −2.58% | $64.73 (−21.35%) |
Aug 13, 2026 7w ago | 144 | $84.04 $78.99 | ▼ −6.01% | ▼ −4.04% | $64.73 (−22.98%) |
Aug 12, 2026 7w ago | 8-K | $81.60 $82.17 | ▲ +0.70% | ▲ +1.14% | $64.73 (−20.67%) |
Aug 5, 2026 8w ago | 8-K | $83.65 $81.60 | ▼ −2.45% | ▼ −2.80% | $64.73 (−22.62%) |
Jul 24, 2026 10w ago | 8-K | $83.54 $83.84 | ▲ +0.36% | ▼ −0.01% | $64.73 (−22.52%) |
May 21, 2026 19w ago | 8-K | $69.91 $71.55 | ▲ +2.35% | ▲ +0.69% | $64.73 (−7.41%) |
May 7, 2026 21w ago | 8-K | $78.07 $65.23 | ▼ −16.45% | ▼ −17.95% | $64.73 (−17.09%) |
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