Authentic Brands Group Emerges as Leading Bidder for Lee Jeans

Authentic Brands Group (ABG) is emerging as a leading candidate to buy Lee Jeans from Kontoor Brands. The acquisition of Lee Jeans by Authentic Brands Group would significantly boost ABG’s already substantial portfolio.

In fact, industry analysts are closely watching the Authentic Brands Group Lee Jeans acquisition due to its potential impact on the denim sector. Kontoor is moving forward with a formal sale and will refocus its business around Wrangler and Helly Hansen.

Sale process and timing

In Q1 2026, Kontoor began a competitive process to sell Lee and reclassified the brand as “discontinued operations” in its accounts.

Chief financial officer Joe Alkire described the process as being in an “advanced” stage, with interest from several potential buyers including those tracking the proposed acquisition of Lee Jeans by Authentic Brands Group. He also said the company is confident it can complete a deal before the end of 2026.

Financial backdrop

The planned sale comes after a stronger first quarter for Kontoor.
In Q1 2026:

• Revenue rose 4% to 613 million dollars

• Adjusted earnings per share increased to 1.29 dollars

• Adjusted operating margin improved to 16.7 percent from 15.6 percent

Lee generated about 750 million dollars in revenue in 2025, and contributed 195 million dollars in Q1 2026 before being reclassified for divestiture. As a result, there is growing anticipation surrounding the potential acquisition of Lee Jeans by Authentic Brands Group and its influence on market shares within this sector.

Use of proceeds

Kontoor plans to use the cash from a Lee sale to strengthen its finances and reward shareholders.
The company has highlighted two main priorities: One priority relates directly to the Authentic Brands Group Lee Jeans acquisition and its impact on capital allocation.

• Paying down debt

• Buying back shares under a new 750 million dollar repurchase programme

Post-sale focus

After the divestiture, Kontoor intends to concentrate on growing its Wrangler and Helly Hansen brands.

This will leave the Greensboro-based company with a more focused portfolio in denim, outdoor and lifestyle. Meanwhile, Lee is expected to find a new home under ABG’s umbrella of heritage and denim‑driven brands if the deal goes through. Furthermore, the expected Lee Jeans acquisition by Authentic Brands Group will have lasting effects on Kontoor’s portfolio and the industry as a whole.