Kontoor Brands posts strong sales growth as Helly Hansen buoys fourth quarter

Lee Jeans
Lee posted low single-digit growth overall. (Source: Lee Jeans)

Kontoor Brands reported a strong fourth quarter, boosted by Helly Hansen, capping what executives called a “transformational year”.

Revenue for the quarter ended January 3 climbed 46 per cent to $1.02 billion. The newly acquired Helly Hansen business contributed $254 million in revenue during the quarter, significantly broadening Kontoor’s exposure beyond its core denim portfolio. 

Within the legacy brands, Wrangler delivered double-digit global revenue growth, supported by gains in both direct-to-consumer and wholesale channels. Lee posted low single-digit growth overall, with steady performance in the US partially offset by softer trends in some international wholesale markets.

“Our results highlight the strength and resiliency of our expanded brand portfolio as well as the impact from our transformation initiatives,” said Scott Baxter, president, CEO and chairman of the board of directors. 

“Supported by record cash generation, including a $100 million contribution from Helly Hansen, we are ahead of our planned deleverage path, allowing us to capitalize 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.”

Looking ahead, the company expects fiscal 2026 revenue to increase around 9 per cent to between $3.40 billion and $3.45 billion. 

“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.” 

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