Kontoroor Brands recorded a strong result of the second quarter of 2025 with $ 658 million revenue, increasing 8 % on an annual basis. The rectified gross margin rose to 46.4 percent and the EPS rectified at $ 1.21. Wrangler’s revenues grew by 7 % while Lee decreased by 6 %. Helly Hansen added $ 29 million. The entries of the tax year are expected at $ 3,09- $ 3.12 billion with rectified EPS of $ 5.45. The cash flow should exceed $ 375 million.
The rectified profits per share (EPS) were $ 1.21, an increase of 23 %, or $ 1.33 excluding the integration of Helly Hansen, reflecting a 36 %increase.
“Our strong results of the second quarter have been guided by the growth of organic revenues better than expected, by the expansion of the gross margin, by operational efficiency and the generation of cash, as well as by a stronger contribution of Helly Hansen’s planned”, he said Scott Baxter, president, CEO and Prime Minister. “We welcomed Helly Hansen to the Kontoor family in June and the integration started great.”
The global revenues of Wrangler, in terms of the brand, reached $ 461 million (an increase of 7 %), with the US market that recorded 9 %growth, while Lee global revenues decreased by 6 %to $ 166 million, although they showed a sequential improvement compared to the first quarter. Helly Hansen contributed with $ 29 million revenue for June, with the musto-making under-shirt that generated $ 3 million.
The SG & A expenses have been reported to $ 226 million, or 34.4 percent of the revenue, while the SG & A rectified expenses were $ 206 million (31.3 percent of the revenues). The SG & A organic expenses decreased by 5 % on an annual basis, led by a lower expenditure and a discretionary expense, said Kontoor in a press release.
Kontoroor has increased its FY25 prospects, now providing for the interval of $ 3.09 to $ 3.12 billion, representing the growth of 19-20 % on an annual basis, including a 18 % benefit from Helly Hansen. The rectified gross margin is projected to about 46.1 percent, an increase of 100 BPS compared to the previous year, despite an estimated impact of 50 BPS compared to the increased rates.
The rectified operational income is expected to reach $ 443 million, an increase of 16 % on an annual basis, including an impact of $ 30 million by additional marketing rates and investments. The rectified EPS for the entire year is now scheduled for around $ 5.45, with Helly Hansen contributing to around $ 0.20 and rates and have added investments that reduce $ 0.4 EPS.
“We are increasing our perspectives for the whole year to reflect stronger results of the first half, greater visibility in our tariff mitigation initiatives and the trust we have in the perspectives for our activity for the balance of the year”, added Baxter. “Our ability to largely compensate the impact from the highest rates reflects the strength of our brands, the agility of our supply chain and the benefits of the Jeanius project.”
The company provides for a turnover of the third quarter (Q3) of $ 855 million (increase of 28 % on an annual basis) and a rectified EPS of $ 1.35. Helly Hansen will also be expected to break into the third quarter, net of the interest relating to the acquisition.
Kontoor provides that the cash flow from the operations exceeds 375 million dollars, compared to the previous $ 350 million guide. The capital expenses are hooked to $ 40 million. The tax rate for the entire year of the company is scheduled for 21 %, with the interest expected interest at $ 50 million.
Fiber2fashion news desk (sg)