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Kontoor Brands Is Expanding Helly Hansen In North America—But Will Controlled Growth Drive Long-Term Gains?

Kontoor Brands reported strong financial performance for the full year 2025, marking a transformational period highlighted by its acquisition of Helly Hansen and continued momentum in its core brands Wrangler and Lee. The company achieved record revenue, earnings, and cash flow, with full-year revenue increasing 18% and adjusted operating earnings improving over 20%. Cash from operations exceeded $450 million, supporting significant capital deployment including approximately $250 million towards debt reduction, share repurchases, and dividends. The company ended the year with a net leverage ratio of 2.0x on a pro forma basis and is on track to reduce this to below 1.5x by the end of 2026. Wrangler delivered steady growth, with fourth-quarter revenues up 3% and full-year global revenue increasing 4%, driven by double-digit growth in the female, Western, and direct-to-consumer (DTC) segments, underpinning the brand’s market share gains and broad category expansion.