Can Lee Reclaim Its Cool?

Kontoor Brands’ surprise announcement last week to divest Lee from its portfolio puts the denim brand, which has projected sales of $750 million this year, on the open market.

While intellectual property management firm Authentic Brands Group has emerged as a frontrunner to acquire the 137-year-old American brand, denim industry consultants say the ideal buyer would be one that actively reinforces the Lee’s workwear heritage rather than simply monetizing it.

Although Kontoor Brands president, CEO, and chairman Scott Baxter said Lee was positioned to return to revenue growth in the second half of 2026, the brand has struggled to articulate a clear identity. Its first major brand equity campaign in over a decade, “Built Like Lee,” which launched last fall, was informed by extensive consumer research, but leaned heavily on themes of craftsmanship and connection—lacking the Western, music and celebrity-driven energy of its competitors, including sister brand Wrangler.

Lee has also pursued an unusually broad range of collaborations in recent years, partnering with brands spanning Crayola, Paul Smith, Alpha Industries, Hey Dude, Buck Mason, Diesel, J.Crew, and Feng Chen Wang—attempts, perhaps, to find a welcoming audience.

Somewhere along the way, Amy Leverton, founder of Denim Dudes, said Lee’s personality became diluted. “Levi’s, Wrangler and Carhartt for instance, all have incredibly clear identities. Levi’s occupies a rare position where it can be almost everything to everyone, which is very difficult to achieve but incredibly powerful. Wrangler has fully committed to its Americana, rodeo and retro identity. Lee, meanwhile, feels less clearly defined in the modern market,” she said.

That didn’t have to be the case. Culturally, Leverton said Lee had access to many of the same “worlds” as Levi’s—rock ‘n’ roll, rebellion, garage culture and Americana—but the 501-maker outpaced Lee through stronger marketing and more compelling storytelling.

“Levi’s documented and mythologized those associations so effectively that they became inseparable from the brand in public memory,” she said. “Lee has somehow failed at this.”

Mohsin Sajid, owner and creative director of Endrime and former VF designer, argues that Lee “has been lost for ages,” with one exception being how Edwin Japan, which has the Japanese license for Lee, thoughtfully links new products to the heritage of the brand.

He added that the Lee 101 range “should have stayed premium” in the same way that Levi’s curates products for the Levi’s Vintage Clothing line.

So, what went wrong for Lee at Kontoor?

Sajid said the issues began under VF’s ownership and continued when the denim segment separated and became Kontoor Brands in 2019. “There was too much cross-pollination happening. They were also sharing suppliers and knowledge,” Sajid said. “I get it—you save money, [but] they should have kept it completely separate.”

Sajid recalled remember going to an airport and seeing both Wrangler and Lee in a co-branded store. “All the merchandise together—it’s the most ridiculous thing I’ve ever seen in my life,” he said.

“Under the Kontoor umbrella, it almost felt like a family with two children where one has a very strong sense of self and naturally commands attention and the other less so,” Leverton said. “Wrangler has always known exactly who it is, while Lee has felt more uncertain about its positioning, despite having just as much potential.”

Whereas Wrangler embodies “pure Americana and Western nostalgia,” Leverton said Lee has always carried a grittier, garage and biker vibe. That spirit is woven into Lee’s Union-Alls, a one-piece garment originally designed for auto mechanics in 1913.

Leverton recalled when her first job out of university at Oki-Ni included a collaboration with Lee. There, she had the opportunity to immerse herself in the brand’s history and visual language. “I’ve always felt that Lee’s most authentic direction sits somewhere between garage culture and music culture. That identity still feels largely untapped,” she said.

Ana Paula Alves de Oliveira, founder and strategic director of Be Disobedient, said the divergence between Lee and Wrangler is less about product quality and more about narrative architecture. “In a market where consumer demand is increasingly function-specific, Wrangler benefits from function-based value positioning. Conversely, Lee’s omnichannel approach currently creates consumer confusion rather than clear differentiation,” she opinined.

The addition of outdoor apparel brand Helly Hansen to Kontoor’s portfolio may have further highlighted Lee’s challenges. During the Q1 2026 earnings call, Baxter emphasized how “function and activity-based brands offer more durable, dependable and sustainable growth characteristics,” adding that the company sees opportunities to accelerate investments in technical outdoor apparel and footwear.

Alves de Oliveira said the ideal owner must have a deep understanding of denim economics and possess the capital for restructuring. Lee needs a buyer with expertise in digital-native brand management, narrative repositioning and international growth operations—qualities that she said can facilitate connections with new consumers while strengthening Lee’s positioning with its existing customer base.   

However, Lee has something no Gen Z-focused, digital first or celebrity-backed brand can’t manufacture overnight: a multigenerational legacy that consumers already trust. They just need to be reminded of it.

“Brand recognition is everything in 2026, and that goes far beyond logos now. Consumers need to be able to close their eyes and instantly understand what a brand stands for, how it feels, who it belongs to,” Leverton said. “I’ve been lucky enough to visit the Lee archives in Kansas City before they moved to Greensboro, and the historical DNA is absolutely there.”

Past meets future

Under new ownership, Alves de Oliveira prescribes “authentic heritage and modern sustainability.” The brand, she added, has an opportunity to target conscious consumers and Gen Z with a message of “1950s cool meets jeans with responsibility.”

Alves de Oliveira argues that Lee’s sustainability positioning is objectively stronger than Wrangler’s in terms of transparency and execution, though she noted that the market does not yet fully perceive this. Additional strengths include its “product excellence” in the comfort segment, and a robust international distribution infrastructure.

A retro sensibility aligns with Leverton’s vision for the brand as well. “I hope they protect the grit in the brand. To me, Lee has always carried a garage-greaser spirit. There are references to James Dean, Marilyn Monroe, biker culture, garage bands and vintage workwear. That world still feels culturally relevant today if approached authentically,” she said.

The consultant would also like to see major investment in the product itself. Whether intentional or not, she said Lee product can sometimes feel flatter and less dimensional than its competitors. “The fabric, washes and overall finishing need more depth and character,” she explained.

Leverton pointed to Gap as an example of how a heritage brand—albeit many decades younger than Lee—can make product-led comeback.

“Around eight years ago, the brand was struggling and the product looked flat and fast-fashion-adjacent. Their recent turnaround wasn’t only marketing-led; the product quality and visual depth also improved dramatically. Today the product feels far more considered and elevated. Lee has the potential to undergo a similar transformation if the product investment is there,” she said.

“Whoever is going own it needs to respect it. It needs to be an ambassador for the past,” Sajid said. “It would be amazing if it’s a company that had heritage and wants to explore the brand and rebuild Lee from its past and think about fabrics and constructions and move the ground forward.”

Though, he said it likely be a big company that acquires companies and will “milk Lee for the license.”

“It’s just a sad state of affairs,” he added.

Alves de Oliveira argues that Lee is far from being another heritage brand reduced to meaningless licenses. “Lee is just tired and the current market timing for heritage denim offers a prime opportunity for revival. An operating model allows for fundamental repositioning, whereas a licensing model would likely lock the brand into its current stagnation. While financial acquirers might consider licensing to maximize short-term, they would be leaving substantial long-term value on the table,” she said.

Taking a licensing route is a “hard no” for Leverton. “Licensing might generate short-term revenue, but it often strips away the soul and specificity that makes heritage brands meaningful in the first place,” she said. “Consumers are increasingly drawn to brands with depth, authenticity and cultural perspective. Lee has all the ingredients to reclaim that position, but only if it’s treated as a living brand rather than simply an IP asset.”

Realistically, Leverton said Lee may follow the “common pattern in fashion now” and end up with an investment group focused on licensing and short-term returns.

“Personally though, I’d much rather see it acquired by a company or individual willing to invest patiently in properly rebuilding brand equity,” she said. “Lee doesn’t need to become a logo machine or a volume-driven basics business. It needs a strong design team, an opinionated creative director with a clear vision, and a badass chief marketing officer capable of rebuilding the emotional connection around the brand.”

However, she emphasized how heritage brands benefit more from “passionate ownership than from large conglomerate structures.”

“The industry has become so focused on extraction and speed that genuinely nurturing a brand long-term now feels almost radical,” Leverton said.