In the fourth quarter, Wrangler brand’s global revenue was $562 million and increased 12 per cent compared to prior year. Lee brand’s global revenue was $198 million and grew 2 per cent compared to prior year. Helly Hansen’s global revenue was $254 million.
Kontoor Brands reported Q4 FY2025 revenue of $1.02 billion, up 46 per cent, largely driven by the Helly Hansen acquisition.
Excluding Helly Hansen and the 53rd week, revenue grew 2 per cent.
Wrangler revenue rose 12 per cent to $562 million, Lee grew 2 per cent to $198 million, and Helly Hansen added $254 million.
FY2025 revenue reached $3.15 billion (+21 per cent).
Gross margin increased 250 basis points to 46.2 per cent on a reported basis and increased 210 basis points to 46.8 per cent on an adjusted basis compared to prior year, including a 180 basis point benefit from the acquisition of Helly Hansen. Excluding Helly Hansen, adjusted gross margin increased 30 basis points driven by the benefits from Project Jeanius, and channel and product mix, partially offset by increased product costs and the impact from previously enacted increases in tariffs, net of pricing actions, the company said in a press release.
“We had a strong finish to the year driven by better-than-expected revenue, earnings and cash generation,” said Scott Baxter, president, chief executive officer and chairman of the board of directors. “2025 was a transformational year for Kontoor, highlighted by the acquisition of Helly Hansen, strong growth in Wrangler and disciplined execution.”
In 2025, revenue was $3.15 billion and increased 21 per cent compared to prior year, including an 18 percentage point benefit from the acquisition of Helly Hansen. Excluding the revenue contribution from Helly Hansen and the 53rd week, revenue increased 1 per cent.
“Our results highlight the strength and resiliency of our expanded brand portfolio as well as the impact from our transformation initiatives,” added Baxter. “Supported by record cash generation, including a $100 million contribution from Helly Hansen, we are ahead of our planned deleverage path, allowing us to capitalise on opportunistic share repurchases in the fourth quarter. I want to thank our colleagues around the globe for positioning us to deliver strong returns for our shareholders in the years ahead.”
For fiscal 2026, revenue is expected to be in the range of $3.40 to $3.45 billion, representing growth of approximately 9 per cent compared to prior year, including an approximate 2 per cent impact from the 53rd week in the prior year.
For the first half of 2026, revenue is expected to be in the range of $1.56 to $1.57 billion, reflecting growth of between 22 and 23 per cent compared to prior year, including the contribution from Helly Hansen.
“We are entering 2026 from a position of strength, with sharp strategic clarity and a relentless focus on execution,” said Baxter. “We have the team and platforms in place to drive another year of record revenue and earnings, cash generation, and investment behind our brands. The strength and resiliency of our model provides significant capital allocation optionality to deliver superior returns for our shareholders.”
Fibre2Fashion News Desk (RR)
