Kontoor Brands reported an 8 percent year-over-year revenue increase in the second quarter to $658 million, driven by improved organic growth and the first contribution from recently acquired Helly Hansen. The Norwegian outdoor brand, acquired on May 31, added $29 million in revenue in June, including $17 million from sport, $9 million from workwear and $3 million from Musto.
US sales for Helly Hansen reached $5 million, with $24 million generated internationally. Kontoor raised its full-year forecast for Helly Hansen to $455 million, up from a previous estimate of $425 million. The brand is expected to be breakeven in Q3 due to integration costs but deliver accretive earnings for the full year.
Improved margins and EPS growth
Gross margin rose to 46.3 percent, up 160 basis points year-over-year, including a 20 basis point lift from Helly Hansen. Adjusted operating income grew 25 percent to $100 million, while adjusted earnings per share (EPS) rose 23 percent to $1.21. On an organic basis, EPS reached $1.33, up 36 percent. Despite recently enacted tariffs, Kontoor reiterated its full-year EPS outlook of $5.45, absorbing an estimated $0.40 impact from tariffs and new investments.
Core brands mixed, outlook raised
Wrangler sales increased 7 percent globally, led by strong US wholesale and digital growth. Lee saw a 6 percent decline, though it marked sequential improvement over Q1.
Kontoor now expects total revenue of $3.09 to $3.12 billion in 2025, including 19–20 percent growth year-over-year, largely due to Helly Hansen’s contribution. Cash flow from operations is projected to exceed $375 million, with continued investment in brand-building and supply chain optimization.
