Kontoor Brands’ revenue reached $853m in Q3 (ended 27 September 2025), which was an increase of 27%, including a 2-point impact from a shift in the timing of shipments from the third quarter to the fourth quarter.
The company’s operating income was $64m compared to $98m in the same period last year, which was a drop of 35%. Its adjusted operating income was $122m, which was an increase of 14% compared to the prior year.
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Kontoor Brands’ net income was $37m versus $71m in the same period the prior year, which was a drop of 48%.
Kontoor Brands CEO and chairman of the board of directors Scott Baxter said: “Our third quarter results exceeded expectations, driven by the strength of our expanded brand portfolio, gross margin expansion, and operational execution.
“While a shift in the timing of shipments impacted revenue growth, 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.”
Kontoor Brands’ Q3 by brand
Wrangler brand global revenue was $471m and increased 2% compared to the prior year. Revenue in the quarter included a 3-point impact from a shift in the timing of shipments from Q3 to Q4. Wrangler US revenue increased 1%, driven by an 11% increase in direct-to-consumer. US wholesale was flat compared to the prior year as a result of the timing shift. Wrangler international revenue increased 6% compared to last year, driven by a 5% increase in wholesale and a 12% increase in direct-to-consumer.
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By GlobalDataLee brand global revenue was $187m and decreased 8% compared to the prior year. Revenue in the quarter included a $7m impact from proactive inventory management actions in China. Lee US revenue decreased 9% driven by an 11% decrease in wholesale, partially offset by a 15% increase in digital. Lee’s international revenue decreased 5% including an 8 percentage point impact from proactive inventory management actions in China. A 7% decrease in wholesale was partially offset by an 8% increase in brick-and-mortar.
Helly Hansen global revenue was $193m. Sport and Workwear revenue was $143m and $42m, respectively.
Musto brand revenue was $7m. US revenue was $40m, and international revenue was $153m.
Kontoor Brands updates full year outlook
Kontoor Brands now expects revenue to be at the high end of the prior outlook range of $3.09 to $3.12bn, representing an increase of approximately 19% to 20%.
Adjusted gross margin is now expected to be approximately 46.4% (versus 46.1% prior), representing an increase of 130 basis points compared to last year.
Adjusted operating income is now expected to be approximately $449m (versus $443m prior), representing an increase of 18% compared to the prior year.
Adjusted EPS is now expected to be approximately $5.50 (versus $5.45 prior), representing an increase of 12% compared to the prior year.
Cash from operations is now expected to approximate $400m.
Baxter explained: “We are raising our full year outlook to reflect stronger revenue and earnings growth, accelerating cash generation, and the scaling benefits from Project Jeanius.”
He added: “We expect the near-term environment to remain dynamic, but I am confident our strong fundamentals, operational execution, and increasing capital allocation optionality will continue to drive strong value creation for our shareholders.”
