Kontoor Brands announces strong Q4 results and Helly Hansen acquisition

Kontoor Brands, parent company of the Wrangler and Lee brands, released preliminary fourth-quarter financial results, revealing a 4 percent year-over-year revenue increase to approximately 699 million dollars.

The company also reported an adjusted gross margin of approximately 44.7 percent, a 160 basis point improvement, and an approximate 23 percent increase in adjusted EPS for the quarter.

In a significant move, Kontoor Brands announced its acquisition of Helly Hansen, the global outdoor and workwear brand, from Canadian Tire Corporation. Helly Hansen is projected to generate over 680 million dollars in revenue and 80 million dollars in adjusted EBITDA for full-year 2025.

"I am pleased with our strong finish to the year, driven by better-than-expected revenue, earnings, and cash generation," said Scott Baxter, president, CEO, and chairman of Kontoor Brands.

He added, "Supported by the benefits of Project Jeanius and the acquisition of Helly Hansen announced this morning, as we look ahead to 2025 we are well positioned to deliver another year of strong returns and value creation.”