Kontoor Brands, Inc. (NYSE:KTB) announced Thursday that it will sell its Lee business to Authentic Brands Group in a deal valued at up to $1 billion, including an initial $750 million payment and a potential $250 million earnout tied to future performance.

The company said the sale will help sharpen its focus on higher-growth brands, including Wrangler and Helly Hansen, while improving capital flexibility and supporting share repurchases and debt reduction.

The transaction is expected to close in the second half of 2026, pending regulatory approvals and customary closing conditions.

Earnings Snapshot

This month, Kontoor Brands reported first-quarter adjusted earnings of $1.06 per share, missing analyst estimates of $1.12. Revenue totaled $613.3 million, below Wall Street expectations of $782.0 million.

Kontoor Brands raised its full-year 2026 outlook following the ...