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Sep 27, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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