Kontoor Brands Announces Sale of Lee Business, Provides Discontinued Ops Data

What Happened

• Kontoor Brands, Inc. (KTB) reported that it entered into a Stock Purchase Agreement on May 20, 2026 to sell all outstanding shares of The H.D. Lee Company, Inc. (the Lee business) to ABG-Storm LLC, an affiliate of Authentic Brands Group (Buyer).
• The Company began a sale process for its global Lee business in Q1 2026, determined the Lee business met held-for-sale criteria, and presented Lee as discontinued operations in its Q1 2026 Form 10-Q.
• In this Form 8-K filed August 5, 2026, Kontoor furnished Exhibit 99.1 containing unaudited, recast financial information for the Lee business for the three months ended March 29, 2025, June 28, 2025 and September 27, 2025, and for the three months and twelve months ended January 3, 2026.

Key Details

• Purchase Agreement date: May 20, 2026; buyer: ABG-Storm LLC (affiliate of Authentic Brands Group).
• Lee was reported as held-for-sale and as discontinued operations in Kontoor’s Q1 2026 Form 10-Q.
• Exhibit 99.1 provides unaudited, recast discontinued-operations financials covering quarterly periods in 2025 and the three- and twelve-month periods ending January 3, 2026.
• The filing notes the sale is subject to customary closing conditions (including required regulatory approvals) and includes standard forward-looking statement disclosures and risk factors.

Why It Matters

• The planned sale is a strategic shift that Kontoor says will have a major effect on the company’s operations and financial results; treating Lee as discontinued helps investors see continuing-business performance separately.
• The furnished recast financials give investors specific historical metrics for the Lee business to evaluate the size and financial contribution of the asset being divested.
• Completion timing and benefits depend on closing conditions and approvals; investors should monitor future filings for transaction closing updates and any impacts to guidance, leverage, or cash flows.