Financial Data and Key Metrics Changes - Global revenue increased by 8%, with a 4% contribution from Helly Hansen [20][21] - Adjusted earnings per share (EPS) was $1.21, a 23% increase compared to the prior year [26] - Adjusted gross margin expanded by 120 basis points to 46.4% [25] Business Line Data and Key Metrics Changes - Wrangler's global revenue increased by 7%, with a 9% increase in the U.S. driven by 16% growth in direct-to-consumer (DTC) [21][12] - Lee's global revenue decreased by 6%, with a 5% decline in U.S. wholesale partially offset by 9% growth in digital [22][23] - Helly Hansen's revenue for June was $29 million, exceeding expectations [24] Market Data and Key Metrics Changes - Wrangler's international revenue decreased by 6%, driven by a 6% decrease in wholesale [21] - Lee's international revenue also decreased by 6%, with low single-digit growth in DTC [23] - The U.S. market showed strong performance, particularly in the digital segment [15][21] Company Strategy and Development Direction - The company is focused on accelerating growth through geographic, category, and channel expansion, particularly for Helly Hansen [37][38] - The value creation framework is built on four pillars: accelerate growth, double operating margins, increase capital allocation optionality, and establish Kontoor as an employer of choice [11] - The company plans to hold an Investor Day in 2026 to share strategic vision and financial model improvements [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 objectives, citing strong momentum entering the second half of the year [39][40] - The operating environment remains uncertain, but the company is executing at a high level with meaningful opportunities to create shareholder value [19][39] - Tariff impacts are expected to be mitigated over a 12 to 18-month period, with proactive measures in place [32][65] Other Important Information - Inventory increased by 40% to $686 million, with a focus on improving working capital and inventory turnover [27] - The company declared a regular quarterly cash dividend of $0.52 per share [31] - A voluntary debt repayment of $25 million was made during the quarter [29] Q&A Session Summary Question: What is the EBIT contribution from Helly Hansen this fiscal year? - The expected EBIT contribution is around $50 million, with a revenue run rate of approximately $680 million [42][43] Question: Can you elaborate on the cadence for second half revenue growth? - The revenue outlook for Q3 is approximately $855 million, with growth driven by a 53rd week and Helly Hansen's contribution [51][53] Question: What are the initiatives to mitigate tariff impacts? - The company is implementing pricing increases, transferring production within the global supply chain, and enhancing supplier partnerships [62][65] Question: What is the Helly Hansen revenue contribution for Q3? - The expected revenue contribution from Helly Hansen for Q3 is around $175 million [106] Question: How is the Wrangler business performing in terms of inventory management? - Wrangler's business is thriving, with strong demand and effective inventory management strategies in place [73][75]