Kontoor Brands beats estimate in FY25 with Helly Hansen boost

For the afloat twelvemonth ended 3 January 2026, the company’s gross reached $3.15bn, up 21% from the erstwhile twelvemonth (FY24).

The acquisition of Helly Hansen successful February 2025 contributed importantly to this increase, accounting for an 18-percentage constituent benefit. When excluding Helly Hansen’s publication and the further 53^rd week successful the fiscal year, gross roseate by 1%.

For the fiscal year, Wrangler’s planetary gross reached $1.91bn, an summation of 6% connected the anterior year. In contrast, Lee brand’s gross stood astatine $750m, a alteration of 5%. Helly Hansen added $475m successful planetary income for the June to December period. The other trading week contributed astir $3m to wide revenue.

Gross borderline for Kontoor Brands improved by 70 ground points to 45.2% connected a reported basis, with Helly Hansen providing a 40-basis constituent benefit.

The company’s reported selling, wide & administrative (SG&A) expenses were $1.09bn.

Operating income for the twelvemonth slipped 2% to $337m, and net per stock (EPS) came successful astatine $4.05 connected a reported basis, down from $4.36.

Kontoor Brands’ president, main enforcement serviceman and president of Board of Directors Scott Baxter said: “2025 was a transformational twelvemonth for Kontoor, highlighted by the acquisition of Helly Hansen, beardown maturation successful Wrangler and disciplined execution. Our results item the spot and resiliency of our expanded marque portfolio arsenic good arsenic the interaction from our translation initiatives.”

Key metrics from 4th fourth 2025

In the 4th fourth (Q4 FY25), Kontoor Brands recorded $1.02bn successful revenue, representing a 46% summation compared to the aforesaid play past year.

The acquisition of Helly Hansen accounted for a 36-percentage constituent payment successful quarterly gross growth.

Wrangler posted planetary fourth-quarter gross maturation of 12% percent and Lee marque generated $198m globally during Q4, representing a emergence of 2% year-on-year. Helly Hansen produced $254m successful fourth-quarter planetary revenue.

The company’s gross borderline accrued by 250 ground points to 46.2% connected a reported ground successful Q4 FY25, with the summation of Helly Hansen accounted for a payment of 180 ground points.

Quarterly operating income was reported astatine $121m, which construe to EPS of $1.31.

Outlook for fiscal 2026

Looking up to fiscal twelvemonth 2026, Kontoor Brands projects gross betwixt $3.40bn and $3.45bn, maturation of astir 9% implicit past year.

For the archetypal fractional of fiscal twelvemonth 2026, expected gross is betwixt $1.56bn and $1.57bn, reflecting maturation betwixt 22 and 23% compared to past twelvemonth including Helly Hansen’s contribution.

The institution anticipates its adjusted gross borderline volition scope from 47.2 to 47.4% successful FY26, an summation of sixty to eighty ground points implicit past year.