Kontoor Brands, Inc. reported strong financial results for its second quarter ended June 28, 2025, with revenue increasing 8% to $658 million compared to the prior year. This includes a $29 million contribution from the Helly Hansen acquisition for the month of June. Adjusted earnings per share (EPS) was $1.21, representing a 23% increase over the prior year.
Wrangler brand global revenue increased 7%, driven by a 9% rise in U.S. revenue and a 16% increase in direct-to-consumer, including 18% digital growth. Lee brand global revenue decreased 6%, showing sequential improvement from the first quarter. Adjusted operating income increased 25% to $100 million, and adjusted gross margin expanded by 120 basis points to 46.4%.
Kontoor Brands strengthened its full-year 2025 outlook, now expecting revenue between $3.09 billion and $3.12 billion, representing 19% to 20% growth. Adjusted EPS is projected to be approximately $5.45, an 11% increase, which includes a $0.20 impact from higher tariffs and $0.20 for incremental investments. Cash from operations is now forecast to exceed $375 million, up from $350 million, and the company made a $25 million voluntary debt repayment during the quarter.
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