Kontoor Brands exceeds expectations for fiscal year 2025

US apparel group Kontoor Brands Inc. has concluded its fiscal year 2025 with a significant increase in revenue, thanks to the acquisition of outdoor outfitter Helly Hansen. One-off charges, however, led to a decline in profit. This was announced in a business report published by the company on Tuesday.

Helly Hansen acquisition boosts revenue development

According to the report, group revenue reached 3.15 billion US dollars last year. This represented an increase of 21 percent compared to the previous year. Of this, 18 percentage points were attributable to revenue contributions from Helly Hansen. Excluding the new addition and the effects of the additional 53rd sales week, revenue was 1 percent above the previous year's level.

Revenues for the Wrangler brand increased by 6 percent to 1.91 billion US dollars, while the Lee label saw a 5 percent decrease to 750 million US dollars. The new addition, Helly Hansen, whose acquisition was completed in early June, has since contributed 475 million US dollars to group revenue.

One-off charges cause profit to fall

Operating profit decreased by 2 percent to 336.8 million US dollars. This was due to one-off charges, which mainly resulted from restructuring expenses and costs related to the acquisition and integration of Helly Hansen. Adjusted for special items, the company stated that the operating result increased by 23 percent to 468 million US dollars. Reported net profit shrank by 7 percent to 227.5 million US dollars.

With these figures, the company was able to exceed its own expectations. This was largely due to a surprisingly successful final quarter, in which revenue increased by 46 percent to 1.02 billion US dollars and net profit grew by 15 percent to 73.8 million US dollars.

Management forecasts growth in revenue and earnings for 2026

CEO Scott Baxter was correspondingly pleased with the “strong finish”. For 2026, he sees the group in a “position of strength”. Management expects revenue growth of about 9 percent to between 3.40 and 3.45 billion US dollars for the current year. The adjusted operating profit is expected to increase to between 506 and 512 million US dollars. This would represent an improvement of eight to nine percent compared to the previous year.

The currently foreseeable effects of US tariff policy are already included in the forecasts. The company stated, however, that it will continue to evaluate the current situation.

This article was translated to English using an AI tool.

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