Kontoor Brands Inc

Latest Results (01.10.2025):

Kontoor Brands Inc. reported strong financial results for the second quarter of 2025, showcasing an 8% increase in revenue compared to the prior year. The company also raised its full-year outlook, reflecting robust organic growth, improved gross margins, and efficient operations. The successful acquisition and integration of Helly Hansen contributed significantly to the positive performance.

Revenue Growth

Second quarter revenue reached $658 million, marking an 8% increase year-over-year. Excluding the Helly Hansen acquisition, organic revenue grew by 4%, highlighting the company's underlying strength.

Enhanced Gross Margins

Reported gross margin improved to 46.3%, while adjusted gross margin rose to 46.4%, an increase of 120 basis points compared to the prior year. This growth includes a 20 basis point benefit from the Helly Hansen acquisition.

Operating Income and Efficiency

Reported operating income stood at $79 million, with adjusted operating income increasing by 25% to $100 million. Excluding Helly Hansen, adjusted operating income surged by 32% to $105 million, demonstrating enhanced operational efficiency.

Earnings Per Share (EPS)

Reported EPS was $1.32, and the adjusted EPS increased by 23% to $1.21. Excluding Helly Hansen, adjusted EPS grew by 36% to $1.33, reflecting strong profitability growth.

Dividend and Shareholder Returns

Kontoor Brands declared a regular quarterly cash dividend of $0.52 per share and returned $29 million to shareholders through dividends in the second quarter. Additionally, the company has $215 million remaining under its authorized share repurchase program.

Full Year 2025 Outlook

The company raised its full-year revenue outlook to a range of $3.09 to $3.12 billion, a 19-20% increase from the prior year, driven by the Helly Hansen acquisition. Adjusted gross margin is expected to reach approximately 46.1%, and adjusted EPS is projected to be around $5.45, up by 11% year-over-year.