For the full year ended 3 January 2026, the company’s revenue reached $3.15bn, up 21% from the previous year (FY24).
The acquisition of Helly Hansen in February 2025 contributed significantly to this increase, accounting for an 18-percentage point benefit. When excluding Helly Hansen’s contribution and the additional 53rd week in the fiscal year, revenue rose by 1%.
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For the financial year, Wrangler’s global revenue reached $1.91bn, an increase of 6% on the prior year. In contrast, Lee brand’s revenue stood at $750m, a decrease of 5%. Helly Hansen added $475m in global sales for the June to December period. The extra trading week contributed around $3m to overall revenue.
Gross margin for Kontoor Brands improved by 70 basis points to 45.2% on a reported basis, with Helly Hansen providing a 40-basis point benefit.
The company’s reported selling, general & administrative (SG&A) expenses were $1.09bn.
Operating income for the year slipped 2% to $337m, and earnings per share (EPS) came in at $4.05 on a reported basis, down from $4.36.
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By GlobalDataKontoor Brands’ president, chief executive officer and chairman of Board of Directors Scott Baxter said: “2025 was a transformational year for Kontoor, highlighted by the acquisition of Helly Hansen, strong growth in Wrangler and disciplined execution. Our results highlight the strength and resiliency of our expanded brand portfolio as well as the impact from our transformation initiatives.”
Key metrics from fourth quarter 2025
In the fourth quarter (Q4 FY25), Kontoor Brands recorded $1.02bn in revenue, representing a 46% increase compared to the same period last year.
The acquisition of Helly Hansen accounted for a 36-percentage point benefit in quarterly revenue growth.
Wrangler posted global fourth-quarter revenue growth of 12% percent and Lee brand generated $198m globally during Q4, representing a rise of 2% year-on-year. Helly Hansen produced $254m in fourth-quarter global revenue.
The company’s gross margin increased by 250 basis points to 46.2% on a reported basis in Q4 FY25, with the addition of Helly Hansen accounted for a benefit of 180 basis points.
Quarterly operating income was reported at $121m, which translate to EPS of $1.31.
Outlook for fiscal 2026
Looking ahead to fiscal year 2026, Kontoor Brands projects revenue between $3.40bn and $3.45bn, growth of approximately 9% over last year.
For the first half of fiscal year 2026, expected revenue is between $1.56bn and $1.57bn, reflecting growth between 22 and 23% compared to last year including Helly Hansen’s contribution.
The company anticipates its adjusted gross margin will range from 47.2 to 47.4% in FY26, an increase of sixty to eighty basis points over last year.
Baxter said: “We are entering 2026 from a position of strength, with sharp strategic clarity and a relentless focus on execution. We have the team and platforms in place to drive another year of record revenue and earnings, cash generation, and investment behind our brands. The strength and resiliency of our model provide significant capital allocation optionality to deliver superior returns for our shareholders.”
