The US clothing provider Kontor Brands Inc. kept its sales largely stable in the first quarter of the 2025 financial year. However, negative special effects put on the profit.
In addition to the current figures, the parent company of the Denim brands Wrangler and Lee also presented updated annual forecasts on Tuesday, which now also take into account the financial effects of the planned takeover of the outdoor equipment Helly Hansen. According to the current status, the acquisition is to be carried out in the current month.
Press the disposal of the profit
In the period from January to March, the group sales were $ 622.9 million (549.8 million euros). He sank by one percent compared to the previous year and remained behind the expectations of the analyst: inside. Adjusted to change course changes, the proceeds remained practically constant. The turnover of the Wrangler brand rose by three percent to $ 420 million, but the Lee label had to accept a decrease of nine percent to $ 200 million.
Restructuring costs and expenditure in connection with Helly-Hansen takeover ensured that the operational profit decreased by 13 percent to $ 73.3 million. Adjusted for special effects, however, it rose by four percent to $ 96.1 million.
The designated net result shrank 28 percent to $ 42.9 million (37.9 million euros). The profit per share adjusted for special effects reached a height of $ 1.20. He grew by three percent compared to the same period in the previous year and exceeded the market expectations.
The new forecasts also take into account the expected sales and earnings contributions from Helly Hansen
The company also presented new annual forecasts, which for the first time contain the expected sales and profit contributions from Helly Hansen. According to this, management expects sales growth by 17 to 19 percent to 3.06 to 3.09 billion US dollars for 2025. For this purpose, Helly Hansen should contribute around $ 425 million after completing the takeover that is expected for the end of May.
The target corridor for the operating profit adjusted for special effects is now between $ 437 to $ 445 million, which would mean an increase of 15 to 17 percent compared to the previous year. The profit per share adjusted for special effects is expected to grow by ten to twelve percent to $ 5.40 to $ 5.50.