Kontoor Brands has reported a double-digit increase in sales for the third quarter, mainly thanks to the contribution of Helly Hansen post-acquisition. 

The company’s revenue for the quarter ended September 27 soared 27 per cent to $853 million. 

The growth was mainly driven by the addition of Helly Hansen revenue after Kontoor acquired the outdoor clothing brand in June, as well as a two-point impact from a shift in the timing of shipments from the third quarter to the fourth quarter. 

Excluding Helly Hansen, revenue was down approximately 0.3 per cent to $668 million. 

Wrangler brand global revenue increased 2 per cent to $471 million during the quarter, with US revenue up 2 per cent and international sales up 6 per cent.

Lee brand global revenue slid 8 per cent to $187 million. Lee US sales fell 9 per cent, while international revenue dropped 5 per cent, including an 8 percentage point impact from proactive inventory management in China.

On the bottom line, net income fell by 48 per cent to $36.9 million. Operating income fell 35 per cent to $64 million, but adjusted operating income rose 14 per cent to $122 million.

“Our third quarter results exceeded expectations, driven by the strength of our expanded brand portfolio, gross margin expansion, and operational execution,” said CEO Scott Baxter.

“Wrangler drove another quarter of broad-based growth and market share gains, Helly Hansen delivered better than expected revenue and profitability, and we launched Lee’s first equity campaign in years while improving the health of the marketplace.”

The company has raised its full-year outlook to reflect stronger revenue and earnings growth. 

Revenue is now expected to be at the high end of the prior outlook range of $3.09 to $3.12 billion, representing a 19-20 per cent increase. Adjusted operating income is forecast to be up 18 per cent to $449 million, compared to the prior outlook of $443 million.