Kontoor Brands beats estimate in FY25 with Helly Hansen boost

Core Insights - The company reported a revenue of $3.15 billion for the fiscal year ending January 3, 2026, marking a 21% increase from the previous year, largely driven by the acquisition of Helly Hansen, which contributed an 18-percentage point benefit to revenue growth [1] - Wrangler's global revenue reached $1.91 billion, a 6% increase year-on-year, while Lee brand's revenue decreased by 5% to $750 million [2] - The acquisition of Helly Hansen added $475 million in global sales during the June to December period, with an additional trading week contributing approximately $3 million to overall revenue [2] Financial Performance - The company's SG&A expenses were reported at $1.09 billion, with operating income declining by 2% to $337 million, and earnings per share (EPS) at $4.05, down from $4.36 [3] - In Q4 FY25, Kontoor Brands achieved $1.02 billion in revenue, a 46% increase compared to the same quarter last year, with Helly Hansen accounting for a 36-percentage point benefit in quarterly revenue growth [4][5] - The gross margin improved by 250 basis points to 46.2% in Q4 FY25, with Helly Hansen contributing 180 basis points to this increase [5] Future Outlook - For fiscal year 2026, the company projects revenue between $3.40 billion and $3.45 billion, indicating an approximate 9% growth over the previous year [7] - Expected revenue for the first half of fiscal year 2026 is projected to be between $1.56 billion and $1.57 billion, reflecting a growth of 22% to 23% compared to the previous year, including Helly Hansen's contribution [7] - The company anticipates an adjusted gross margin ranging from 47.2% to 47.4% in FY26, an increase of 60 to 80 basis points over the last year [7]