The US clothing group Kontoor Brands Inc. closed the 2025 financial year with a significant increase in sales thanks to the takeover of the outdoor outfitter Helly Hansen. However, one-off charges led to a decline in profits. This emerges from an annual report that the company published on Tuesday.
The takeover of Helly Hansen boosts sales development
Accordingly, group sales reached $3.15 billion (2.72 billion euros) last year. This corresponded to an increase of 21 percent compared to the previous year. However, 18 percentage points of this were attributable to sales contributions from Helly Hansen. Without the new addition and the effects of the additional 53rd week of sales, sales were one percent above the previous year’s level.
Revenues for the Wrangler brand increased by six percent to $1.91 billion, while for the Lee label they fell by five percent to $750 million. The new addition Helly Hansen, whose takeover was completed at the beginning of June, has since contributed $475 million to group sales.
One-off charges reduce profits
Due to one-time charges, which primarily resulted from restructuring expenses and costs associated with the acquisition and integration of Helly Hansen, operating profit fell by two percent to $336.8 million. However, adjusted for special effects, the operating result increased by 23 percent to $468 million, according to the company. The reported net profit shrank by seven percent to 227.5 million US dollars (195.9 million euros).
With the figures presented, the company was able to exceed its own expectations. This was due not least to a surprisingly successful final quarter, in which sales increased by 46 percent to $1.02 billion and net profit grew by 15 percent to $73.8 million.
Management forecasts increases in sales and earnings for 2026
CEO Scott Baxter was pleased with the “strong final spurt”. He now sees the group in a “position of strength” for 2026. Management expects sales growth of around nine percent to between $3.40 and $3.45 billion for the current year. Operating profit adjusted for special items is expected to increase to $506 to $512 million. That would mean an improvement of eight to nine percent compared to the previous year.
The currently foreseeable effects of US tariff policy are already included in the forecasts. However, the company stated that it would continue to evaluate the current development.
