Kontoor Brands has reported double-digit sales growth for the second quarter, driven by the better-than-expected contribution from Helly Hansen following the brand’s acquisition last year.
The company’s revenue for the quarter ended July 4 jumped 19 per cent to $584 million, most of which was driven by the $114 million in revenue from Helly Hansen, which management said exceeded its expectations.
Founded in 1877 in Norway, Helly Hansen is known for its outdoor apparel and clothing innovations. Kontoor bought the brand from Canadian Tire Corporation in a $900 million deal that was finalized last June.
Wrangler revenue was $469 million, up 2 per cent compared to the prior year. The brand saw a 1 per cent uplift in the US and 10 per cent growth in international markets.
“Helly Hansen delivered a better-than-expected quarter and, for the first half of 2026, delivered double-digit revenue growth on a pro-forma basis and significant profitability improvement fueled in part by the benefits of our multi-brand platform,” commented CEO Scott Baxter.
“Wrangler delivered another quarter of diversified growth led by strong performance in female, direct-to-consumer and international, coupled with exceptional profitability and cash generation,” he added.
Lee’s numbers were not included in the results as the brand’s divestiture is on track to close in the fourth quarter. Upon closing, the company plans to deploy the proceeds into a $400 million share repurchase agreement, as well as voluntary debt payments.
On the bottom line, income from continuing operations slid 3 per cent to $57 million. The company ended the quarter with $58 million in cash and $1.1 billion in long-term debt.
For the full year, Kontoor continues to expect revenue growth of 12-13 per cent, but has lifted its outlook for earnings per share.