The US clothing provider Kontor Brands Inc. was able to achieve unexpectedly powerful growth in sales and results in the second quarter of the 2025 financial year. The company then updated its annual forecasts on Thursday.
In the period from April to June, the group turnover was $ 658.3 million (564.8 million euros). This corresponded to an increase of eight percent compared to the previous year. The outdoor equipment of Helly Hansen, the takeover of which was carried out at the end of May, has since contributed $ 29 million to total sales. Without the first contribution to the newcomer, the group turnover grew by four percent.
The quarterly surplus increases by 43 percent
The quarter turnover of the Wrangler brand increased by seven percent to $ 461 million. The proceeds from the Lee label, on the other hand, decreased by six percent to $ 166 million.
The operational profit was $ 78.5 million and thus four percent above the corresponding level of the previous year. Adjusted for special effects, the operating result rose by 25 percent to $ 100.0 million, according to the group. The net profit, which was $ 51.8 million in the previous year, rose by 43 percent to $ 73.9 million (63.4 million euros).
CEO Baxter praises surprisingly strong growth
Scott Baxter, the CEO, Chairman and President of the Group, paid tribute to the positive development. “Our strong results in the second quarter were based on the fact that organic sales growth, the expansion of gross margin, operational efficiency and cash generation were better than expected,” he emphasized in a statement. In addition, Helly Hansen’s first contribution was surprisingly “strong”.
In view of the available figures, management raised its sales forecast for the entire financial year. Growth is now expected by around 19 to 20 percent to 3.09 to 3.12 billion. Helly Hansen should contribute $ 455 million and thus around 18 percentage points.
The goal for the operational profit adjusted for special effects is now $ 443 million, which would mean an increase of 16 percent compared to the previous year. The expected effects of the recent customs increases are already included in the forecast.