Foto shutterstock/ The Lee era is ending: the brand is up for sale
The decision reflects the company’s strategic shift toward more profitable and sustainably growing assets – Wrangler and Helly Hansen, WWD writes. According to CEO Scott Baxter, these brands will be the core of the portfolio’s further development.
Lee’s financial results will be reported as discontinued operations. The company expects that the sale will not have a significant impact on earnings per share in the horizon of 12-18 months due to the offsetting effects of restructuring and cost reductions.
Lee and Wrangler were merged back in 1986 following VF Corporation’s acquisition of Blue Bell Holdings, and became part of Kontoor Brands in 2019 following the spin-off of the business into a standalone company.
Despite attempts to relaunch the brand – including the Project Jeanius initiative and collaborations with Paul Smith, Diesel and Crayola – Lee continues to lose ground. Wrangler, meanwhile, has seen steady growth, with the brand increasing market share in the denim segment for the 16th consecutive quarter. In the first quarter of 2026, revenue grew 4% to $436 million, with international sales up 20% to $176 million.
Baxter said Wrangler is “uniquely positioned in the marketplace,” combining the image of an American lifestyle brand with an affordable price positioning. The company plans to expand its women’s line and develop non-denim categories.
Kontoor is paying special attention to the development of Helly Hansen, acquired in February 2025. The brand is seen as a key growth driver in the outdoor and technical apparel segment, especially in the US market and the Alpine region.
Against the backdrop of the portfolio review, Kontoor Brands raised its full-year guidance, with revenue expected at $3.41-3.46 billion and adjusted earnings per share at $6.60-6.70. The board also approved a new share repurchase program of up to $750 million, replacing the previous 2023 initiative.
“This reflects our confidence in the future of the business and the strength of our revitalized brand portfolio,” Baxter said.
