Kontoor Brands, Inc. is divesting the Lee brand for up to $1 billion. Lee has been KTB's weakest brand and has consistently reported declining sales and earnings. The transaction values a weak brand at a good multiple. The focus shifts to Helly Hansen and Wrangler, both of which look to grow KTB's earnings well.
KTB sharpens its portfolio around Wrangler and Helly Hansen to drive resilient growth amid macroeconomic uncertainty.
KTB eyes faster growth through Wrangler and Helly Hansen as it advances plans to divest the Lee business.
KTB eyes major growth potential in outdoor wear as Helly Hansen expands in the underpenetrated U.S. market with new technical apparel and footwear.
KTB explores a Lee sale as it ramps up investments in Wrangler and Helly Hansen to drive growth and margin expansion.
Kontoor Brands NYSE: KTB said it plans to divest its Lee brand, marking a major portfolio shift as the company seeks to focus resources on Wrangler and Helly Hansen following its first-quarter 2026 results.
KTB lifts its 2026 outlook after Q1 revenues jump 45%, driven by Helly Hansen growth and plans to divest Lee.
Kontoor Brands (KTB) came out with quarterly earnings of $1.06 per share, missing the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $1.2 per share a year ago.
TPL, LNNGY, KTB, RRBI and WLY have been added to the Zacks Rank #1 (Strong Buy) List on April 17, 2026.
The consensus price target hints at a 33.3% upside potential for Kontoor (KTB). While empirical research shows that this sought-after metric is hardly effective, an upward trend in earnings estimate revisions could mean that the stock will witness an upside in the near term.
Kontoor Brands, Inc. has continued to report similar trends across the two older brands. Wrangler is growing relatively well, but Lee's revenues are still on the decline. Helly Hansen creates significant long-term growth potential for KTB. KTB has high ambitions for the brand, especially from 2027 forward. I estimate KTB stock to have 35% upside to $94.3, driven by Helly Hansen's growth potential.
Kontoor (KTB) is well positioned to outperform the market, as it exhibits above-average growth in financials.