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Kontoor Posts Record 2025 Results, Sets 2026 Outlook as Helly Hansen and Wrangler Drive Gains

Management issued 2026 guidance that bakes in a tariff hit exceeding $100 million, with mitigation planned over 12–18 months.

Overview

  • Q4 2025 revenue rose 46% to $1.02 billion and full‑year revenue reached $3.15 billion, with management calling 2025 a record year for revenue, earnings and cash flow.
  • Helly Hansen proved accretive within seven months of ownership, delivering about $254 million in Q4 revenue, roughly $475 million from June–December, and generating around $100 million in cash.
  • Wrangler continued to gain share with Q4 global revenue up 12% to $562 million, while Lee advances a strategic repositioning with management expecting a return to growth in the second half of 2026.
  • For 2026, Kontoor guided to $3.40–$3.45 billion in revenue, adjusted EPS of $6.40–$6.50 and gross margin of 47.2%–47.4%, while acknowledging a gross tariff headwind of more than $100 million to be offset through pricing and sourcing shifts.
  • Project Genius is slated to reach full run rate in the first half of 2026 and deliver about $100 million of gross savings, as the company prioritizes deleveraging with voluntary term‑loan payments and targets net leverage below 1.5x by year‑end 2026.