Kontoor Brands’ FY25 Revenue Climbs 21% to $3.15B, Guides 9% Growth
Kontoor Brands’ FY25 revenue rose 21% to $3.15 billion, driven by Helly Hansen’s 18-point contribution, while Wrangler sales climbed 6% to $1.91 billion and Lee fell 5% to $750 million. Gross margin rose 70 bps to 45.2%, operating income fell 2% to $337 million with EPS at $4.05, and FY26 revenue is guided 9% higher.
1. FY25 Financial Results
For FY25 ended January 3, 2026, Kontoor Brands recorded $3.15 billion in revenue, a 21% year-over-year increase driven by Helly Hansen’s contribution of 18 points. Wrangler sales rose 6% to $1.91 billion, while Lee revenue declined 5% to $750 million. Reported gross margin improved by 70 basis points to 45.2%, SG&A expenses totaled $1.09 billion, operating income slipped 2% to $337 million and EPS was $4.05.
2. Fourth-Quarter Highlights
In Q4 FY25, the company generated $1.02 billion in revenue, up 46% year-over-year with Helly Hansen contributing a 36-point benefit. Wrangler posted 12% revenue growth, Lee sales rose 2% to $198 million and Helly Hansen delivered $254 million. Gross margin expanded by 250 basis points to 46.2%, and quarterly operating income reached $121 million with EPS of $1.31.
3. Fiscal 2026 Outlook
Looking ahead to FY26, Kontoor Brands forecasts full-year revenue between $3.40 billion and $3.45 billion, representing roughly 9% growth. First-half revenue is projected at $1.56 billion to $1.57 billion, reflecting a 22–23% increase including Helly Hansen. The company expects adjusted gross margin of 47.2–47.4%, a 60 to 80 basis point improvement.