Kontoor Brands, the owner of Helly Hansen and Wrangler, has confirmed that it is divesting its Lee denim brand amid surging group revenues.

In its fiscal first quarter, the clothing giant said its revenue rose 45 per cent year on year to $613 million. This was achieved through Wrangler’s $436 million in revenue and Helly Hansen’s revenue of $176 million.

Kontoor completed the acquisition of Helly Hansen last June.

“Our strong first quarter results reflect the power of our operating model combined with strong execution,” said Scott Baxter, president and CEO. 

“Wrangler drove another quarter of broad-based growth and market share gains, and Helly Hansen delivered better-than-expected revenue and profitability.”

Baxter added that the divestment of the denim and workwear brand Lee gives Kontoor a “sharper focus”, aligning its portfolio with higher growth labels.

“Our planned divestiture of the Lee business is in an advanced state and has attracted interest from multiple parties,” Joe Alkire, CFO, added. 

“We are confident in our ability to successfully complete a transaction this year, resulting in significantly more capital allocation optionality and accelerated growth as we drive enhanced shareholder returns into 2027 and beyond.”

Kontoor said that it expects to receive $54 million in refunded tariff payments from the US Government, reducing its total cost of goods sold across the first quarter by $49 million.