The gross margin of the company stood at 46.3 percent, while the adjusted gross margin improved in 120 basic points (BP) to 46.4 percent, including a contribution of 20 BPS of Helly Hansen. The adjusted operational income grew 25 percent to $ 100 million, with an organic operational income 32 percent to $ 105 million.
Kantoor Brands has reported a strong result of the second quarter of 2025 with revenues of $ 658 million, 8 percent more. The adjusted gross margin increased to 46.4 percent and EPS adjusted to $ 1.21. Wrangler's income grew by 7 percent, while Lee decreased by 6 percent. Helly Hansen added $ 29 million. Fy25 revenues are forecast at $ 3.09– $ 3.12 billion with adjusted EPS of $ 5.45. The cash flow is expected to exceed $ 375 million.
Action -adjusted profits (EPS) were $ 1.21, an increase of 23 percent, or $ 1.33 excluding the integration of Helly Hansen, reflecting a 36 percent increase.
“Our strong results of the second quarter were driven by a better organic income growth than expected, expansion of the gross margin, operational efficiency and cash generation, as well as a stronger contribution of Helly Hansen,” he said Scott Baxter, President, CEO and President of the Board. “We welcomed Helly Hansen to the Kontoor family in June and integration has had a great beginning.”
Wrangler's global revenues, in terms of brand, reached $ 461 million (7 percent more), and the US market saw a growth of 9 percent, while Lee Global In agent decreased 6 percent to $ 166 million, although it showed a sequential improvement of Q1. Helly Hansen contributed $ 29 million in revenues for June, with the Musto submarket generating $ 3 million.
The expenses of SG and a were reported at $ 226 million, or 34.4 percent of the income, while the expenses of SG and adjusted were $ 206 million (31.3 percent of the income). Organic SG & A expenses fell 5 percent year -on -year, driven by lower freight and discretionary expense, Kontoor said in a press release.
Kantoor increased his perspective of the 2000 fiscal year, now waiting for revenues in the range of $ 3.09 to $ 3.12 billion, representing a growth of 19-20 percent growth, including a benefit of 18 percent of Helly Hansen. The adjusted gross margin is projected by approximately 46.1 percent, an increase of 100 bp compared to the previous year, despite an estimated impact of 50 bp of higher tariffs.
Adjusted operational income is expected to reach $ 443 million, 16 percent more, including an impact of $ 30 million additional marketing rates and investments. The adjusted EPS of the full year is now forecast at approximately $ 5.45, with Helly Hansen contributing around $ 0.20 and additional rates and investments by reducing EPS by $ 0.4.
“We are raising our full -year perspective to reflect stronger results in the first half, a greater visibility of our tariff mitigation initiatives and the trust we have in the perspectives of our business for the balance of the year,” Baxter added. “Our ability to compensate to a large extent the impact of the highest rates reflects the strength of our brands, the agility of our supply chain and the benefits of the Jeanius project.”
The company anticipates the income of the third quarter (Q3) of $ 855 million (28 % more YY) and EPS adjusted of $ 1.35. Hello Hansen is expected to arrive in the third quarter, net of interest related to acquisition.
Kontoor expects the cash flow of operations to exceed $ 375 million, above the previous $ 350 million guide. Capital expenses are linked to $ 40 million. The tax rate of the company is forecast to 21 percent, with projected interest expenses at $ 50 million.
Fiber2Fashion News Desk (SG)
