Kontoor Brands closed the fourth quarter of fiscal 2025 with a sharp top-line lift, reflecting the impact of the Kontoor Helly Hansen acquisition alongside steady underlying growth in its legacy denim labels. The company reported Q4 revenue of $1.02bn, up 46% year on year, with management attributing 36 percentage points of the increase to the newly acquired outdoor brand. Stripping out Helly Hansen’s contribution and the extra 53rd week in fiscal 2025, revenue increased 2%.
Brand performance in the quarter was led by Wrangler. Global Wrangler revenue reached $562m, a 12% increase versus the prior year. Lee delivered more modest growth, with global revenue of $198m, up 2%. Helly Hansen contributed $254m in global revenue during the quarter, reinforcing the scale addition from the Kontoor Helly Hansen acquisition.
Margins also improved. On a reported basis, gross margin expanded by 250 basis points to 46.2%. Adjusted gross margin increased 210 basis points to 46.8%, with Kontoor noting that Helly Hansen contributed a 180-basis-point uplift. Excluding Helly Hansen, adjusted gross margin improved 30 basis points, supported by benefits from Project Jeanius as well as channel and product mix, partially offset by higher product costs and the effect of previously implemented tariff increases, net of pricing actions, the company said.
“We had a strong finish to the year driven by better-than-expected revenue, earnings and cash generation,” said Scott Baxter, president, chief executive officer and chairman of the board of directors. “2025 was a transformational year for Kontoor, highlighted by the acquisition of Helly Hansen, strong growth in Wrangler and disciplined execution.”
For the full year, Kontoor posted revenue of $3.15bn, up 21% from the prior year. The company said 18 percentage points of that growth came from Helly Hansen. Excluding Helly Hansen and the 53rd week, revenue increased 1%, indicating relatively stable organic growth across the portfolio.
“Our results highlight the strength and resiliency of our expanded brand portfolio as well as the impact from our transformation initiatives,” added Baxter. “Supported by record cash generation, including a $100 million contribution from Helly Hansen, we are ahead of our planned deleverage path, allowing us to capitalise on opportunistic share repurchases in the fourth quarter. I want to thank our colleagues around the globe for positioning us to deliver strong returns for our shareholders in the years ahead.”
Looking ahead, Kontoor expects fiscal 2026 revenue to land between $3.40bn and $3.45bn, implying growth of about 9% year on year, while noting that the prior year’s 53rd week creates an estimated 2% headwind to the comparison. For the first half of 2026, revenue is forecast at $1.56bn to $1.57bn, representing growth of 22% to 23% versus the prior year period, including Helly Hansen’s contribution.
“We are entering 2026 from a position of strength, with sharp strategic clarity and a relentless focus on execution,” said Baxter. “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 provides significant capital allocation optionality to deliver superior returns for our shareholders.”