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Sep 27
Kontoor Brands Q3 2025 Earnings Report
Kontoor Brands reported strong third quarter results with significant revenue growth, margin expansion, and raised its full-year guidance.
Key Takeaways
Kontoor Brands delivered a solid Q3 2025, with revenue rising 27% year-over-year, supported by strength in its Wrangler and Helly Hansen brands. The company improved adjusted gross margin, increased adjusted EPS, and raised its full-year 2025 outlook.
Revenue rose to $853.2 million, up 27% from the prior year, including a 2-point timing shift impact.
Adjusted gross margin expanded to 45.8%, up 80 basis points YoY.
Adjusted EPS increased to $1.44, with Helly Hansen contributing $0.03.
Kontoor raised full-year guidance for revenue, operating income, and EPS amid strong brand momentum.
Kontoor Brands
Kontoor Brands
Kontoor Brands Revenue by Segment
Kontoor Brands Revenue by Geographic Location
Revenue by Segment
Wrangler Revenue
CapyFin.comLee Revenue
CapyFin.comHelly Hansen Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Kontoor raised its full-year 2025 outlook, now expecting revenue, adjusted EPS, and adjusted operating income at the high end of prior guidance, supported by strong brand performance and margin expansion.
Positive Outlook
- Revenue now expected at the high end of $3.09B to $3.12B range (19–20% YoY growth).
- Helly Hansen contribution to full-year revenue raised to $460 million.
- Adjusted EPS guidance increased to approximately $5.50.
- Adjusted operating income expected to be ~$449 million, up from $443 million prior guidance.
- Cash from operations expected to reach approximately $400 million.
Challenges Ahead
- Continued tariff pressures expected through year-end.
- Fourth quarter revenue includes 53rd week, potentially inflating comparisons.
- Lee brand revenues declined YoY due to challenges in China and U.S. wholesale.
- Gross margin expansion includes a boost from Helly Hansen acquisition, masking underlying pressures.
- Operating margin slightly lower YoY despite revenue growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income