The Wrangler and Lee parent company closed 2025 with its largest-ever revenue base, buoyed by its first full reporting period including Helly Hansen – and is already absorbing tariff headwinds ahead of a record 2026 outlook.
Kontoor Brands closed fiscal 2025 with revenue up 21 percent to $3.15 billion (€2.9bn), with the Norwegian outdoor label Helly Hansen accounting for nearly all of that growth – and management already declaring confidence in a new revenue record for 2026.
The North Carolina-based group, which owns the Wrangler and Lee denim brands, completed its acquisition of Helly Hansen in June 2025. The brand contributed $475 million (€437m) to group revenue over the roughly seven months it was consolidated into results, making it the primary engine of the year-on-year uplift.
Q4 surge lifts revenue, margins and profit
The fourth quarter showed the most dramatic headline movement, with revenue reaching $1.02 billion (€938m) – a 46 percent increase on the same period a year earlier. Helly Hansen contributed 36 percentage points of that gain. The quarter’s adjusted gross margin of 46.8 percent improved 210 basis points year over year; on an adjusted basis, operating income of $150 million (€138m) was up 48 percent, partly reflecting $8 million in additional brand investment that exceeded the company’s own prior guidance.
| KONTOOR BRANDS — Consolidated Income Statement | |||
|---|---|---|---|
| Twelve Months Ended December 2025 vs 2024 | Figures in $000s (unaudited) | |||
| FY 2025 ($000s) | FY 2024 ($000s) | Change | |
| Net revenues | 3,152,456 | 2,607,578 | 20.9% |
| Costs and operating expenses | |||
| Cost of goods sold | 1,729,067 | 1,446,008 | 19.6% |
| Selling, general & administrative expenses | 1,086,581 | 819,281 | 32.6% |
| Total costs and operating expenses | 2,815,648 | 2,265,289 | 24.3% |
| Operating income | 336,808 | 342,289 | (1.6%) |
| Interest expense | (62,162) | (40,824) | 52.3% |
| Interest income | 7,299 | 11,149 | (34.5%) |
| Other (expense) income, net | 11,316 | (11,191) | (201.1%) |
| Income before income taxes | 293,261 | 301,423 | (2.7%) |
| Income taxes | (71,220) | (55,621) | 28.0% |
| Income from equity method investment | 5,411 | - | |
| Net income | 227,452 | 245,802 | (7.5%) |
| Source: Kontoor Brands press release, Business Wire, March 3, 2026. Figures unaudited. * Income from equity method investment not reported in 2024. | |||
Wrangler gains, Lee dips as Helly Hansen adds $475 million
Among the legacy brands, Wrangler grew full-year global revenue 6 percent to $1.91 billion (€1.76bn), while Lee slipped 5 percent to $750 million (€690m), weighed down by wholesale declines in both the US and international markets.
The more closely watched figure was Helly Hansen’s maiden contribution. Over the roughly seven months from June to December, the Norwegian brand generated $475 million (€437m) in revenue, split across sport ($354m/€325m), workwear ($105m/€97m) and the Musto sailing label ($16m/€15m). International markets drove the bulk of demand, accounting for $362 million (€333m) against $113 million (€104m) in the US.
| KONTOOR BRANDS — Revenue by Brand Segment | ||||
|---|---|---|---|---|
| Twelve Months Ended December 2025 vs 2024 | Figures in $000s (unaudited) | ||||
| FY 2025 ($000s) |
FY 2024 ($000s) |
% Change |
% Change (Constant Currency) |
|
| Segment revenues | ||||
| Wrangler | 1,914,622 | 1,805,989 | 6% | 6% |
| Lee | 750,368 | 790,625 | (5%) | (6)% |
| Helly Hansen | 459,716 | – | n/a | n/a |
| Total reportable segment revenues | 3,124,706 | 2,596,614 | 20% | 20% |
| Other revenues (b) | 27,750 | 10,964 | 153% | 153% |
| Total net revenues | 3,152,456 | 2,607,578 | 21% | 21% |
| (a) Constant currency excludes translation impact of foreign currency exchange rate changes. | ||||
| (b) Other includes sales and licensing of Musto, Chic and Rock & Republic brands, other company-owned brands and private label apparel. | Source: Kontoor Brands, Business Wire, March 3, 2026. | ||||
| Constant Currency | ||||
| This release refers to “reported” amounts in accordance with GAAP, which include translation and transactional impacts from changes in foreign currency exchange rates. This release also refers to “constant currency” amounts, which exclude the translation impact of changes in foreign currency exchange rates. | ||||
Kontoor cuts debt with $200 million repayment, keeps leverage at 2.0x
The acquisition was financed with $1 billion (€920m) in new long-term debt, and the company has moved quickly to reduce leverage. During the fourth quarter, Kontoor made a $200 million (€184m) voluntary term loan repayment, ending the year with long-term debt of $1.13 billion (€1.04bn) and a pro-forma net leverage ratio of 2.0 times. The company also returned $54 million (€50m) to shareholders in Q4 through dividends and share repurchases.
For the full year, adjusted operating income rose 23 percent to $468 million (€430m), with an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin of 16.1 percent. Full-year adjusted EPS reached $5.59 (€5.14), up 14 percent.
Kontoor targets record 2026 as higher US tariffs loom
Kontoor expects 2026 revenue of $3.40–$3.45 billion (€3.13–3.17bn), up about 9 percent, reflecting a full year of Helly Hansen. The company forecast adjusted operating income of $506–$512 million (€465–470m) and adjusted EPS of $6.40–$6.50 (€5.89–5.98), implying a 15 to 16 percent increase from 2025.
The guidance assumes higher US tariffs across most sourcing countries, the company said, while Mexico remains exempt under the United States-Mexico-Canada Agreement (USMCA).
Kontoor added that more than 80 percent of its Bangladesh output uses US-grown cotton, which could qualify for a duty exemption under a bilateral agreement now under review following the recent US Supreme Court ruling.
