Kontoor Brands reported third‑quarter 2025 results on 3 November 2025, posting revenue of $853 million, a 27 % year‑over‑year increase from $670 million in Q3 2024. The company earned $0.66 per share on a reported basis and $1.44 per share on an adjusted basis, beating consensus estimates of $0.66 and $1.35, respectively. Adjusted earnings per share grew 5 % from $1.37 in the same quarter a year earlier.
Revenue from the Wrangler, Lee, and Helly Hansen brands contributed $193 million, $193 million, and $193 million, respectively. Wrangler global revenue rose 1 % in Q3 2025, driven by a 12 % increase in digital sales and a 20 % rise in the female business segment. Lee global revenue fell 9 % in the quarter, largely due to proactive inventory reductions in China; excluding China, revenue declined 4 %. Helly Hansen’s contribution of $193 million reflects the continued integration of the brand following its acquisition.
Gross margin expanded to 45.8 % on an adjusted basis, and operating income reached $122 million. The company cited the ongoing Project Jeanius transformation, which is expected to deliver over $100 million in annual run‑rate cost savings by 2026, as a key driver of margin improvement. The slight revenue miss relative to analyst consensus is attributed to supply‑chain constraints that moderated growth in certain product categories.
Kontoor Brands raised its full‑year 2025 revenue outlook to $3.11 billion and reiterated an adjusted earnings‑per‑share guidance of approximately $5.50. The company also increased its quarterly dividend to $0.53 per share, payable on 18 December 2025, reflecting confidence in its financial performance and a commitment to returning value to shareholders.
The results underscore the strategic significance of Helly Hansen’s acquisition, which has expanded Kontoor’s portfolio into the outdoor and workwear segments. The company continues to focus on deleveraging its balance sheet, prioritizing debt reduction over share repurchases, and maintaining a disciplined approach to capital allocation in a competitive apparel market dominated by rivals such as Levi Strauss & Co. and VF Corporation.
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