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US’ Kontoor Brands lifts FY25 outlook as Q2 revenue hits $658 mn

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US’ Kontoor Brands lifts FY25 outlook as Q2 revenue hits 8 mn



American clothing company Kontoor Brands, Inc has reported a robust second quarter (Q2) result for the period ended June 28, 2025, posting a revenue of $658 million, an increase of 8 per cent year-over-year (YoY), excluding the acquisition of Helly Hansen, organic revenue rose 4 per cent.

The company’s gross margin stood at 46.3 per cent, while adjusted gross margin improved by 120 basis points (bps) YoY to 46.4 per cent, including a 20-bps contribution from Helly Hansen. The adjusted operating income grew 25 per cent to $100 million, with organic adjusted operating income up 32 per cent to $105 million.

Kontoor Brands has reported a strong Q2 2025 result with revenue of $658 million, up 8 per cent YoY.
The adjusted gross margin rose to 46.4 per cent and adjusted EPS to $1.21.
Wrangler revenue grew 7 per cent while Lee declined 6 per cent.
Helly Hansen added $29 million.
FY25 revenue is forecast at $3.09–$3.12 billion with adjusted EPS of $5.45.
Cash flow is expected to exceed $375 million.

The adjusted earnings per share (EPS) was $1.21, a 23 per cent increase, or $1.33 excluding Helly Hansen’s integration, reflecting a 36 per cent rise.

“Our strong second quarter results were driven by better-than-expected organic revenue growth, gross margin expansion, operating efficiency and cash generation, as well as a stronger-than-expected contribution from Helly Hansen,” said Scott Baxter, president, CEO and chairman of the board. “We welcomed Helly Hansen to the Kontoor family in June and the integration is off to a great start.”

Brand-wise, Wrangler global revenue reached $461 million (up 7 per cent), with the US market seeing 9 per cent growth, while Lee global revenue declined 6 per cent to $166 million, though showed sequential improvement from Q1. Helly Hansen contributed $29 million in revenue for June, with the Musto sub-brand generating $3 million.

SG&A expenses were reported at $226 million, or 34.4 per cent of revenue, while adjusted SG&A expenses stood at $206 million (31.3 per cent of revenue). Organic SG&A expenses dropped 5 per cent YoY, driven by lower freight and discretionary spend, Kontoor said in a press release.

Kontoor raised its FY25 outlook, now expecting revenue in the range of $3.09 to $3.12 billion—representing 19–20 per cent growth YoY, including an 18 per cent benefit from Helly Hansen. Adjusted gross margin is projected at approximately 46.1 per cent, up 100 bps from the previous year, despite an estimated 50 bps impact from increased tariffs.

Adjusted operating income is expected to reach $443 million, up 16 per cent YoY, including a $30 million impact from tariffs and additional marketing investments. Full year adjusted EPS is now forecast at approximately $5.45, with Helly Hansen contributing around $0.20 and tariffs and added investments reducing EPS by $0.4.

“We are raising our full year outlook to reflect stronger first half results, greater visibility into our tariff mitigation initiatives, and the confidence we have in the outlook for our business for the balance of the year,” added Baxter. “Our ability to largely offset the impact from higher tariffs reflects the strength of our brands, the agility of our supply chain, and the benefits from Project Jeanius.”

The company anticipates third quarter (Q3) revenue of $855 million (up 28 per cent YoY) and adjusted EPS of $1.35. Helly Hansen is expected to break even in Q3, net of acquisition-related interest.

Kontoor expects cash flow from operations to exceed $375 million, up from the prior guidance of $350 million. Capital expenditures are pegged at $40 million. The company’s full-year tax rate is forecast at 21 per cent, with interest expense projected at $50 million.

Fibre2Fashion News Desk (SG)



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Fashion

Create Garment Trading Adjudicator: Researchers tell UK govt

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Create Garment Trading Adjudicator: Researchers tell UK govt



Researchers have called on the UK government to establish a Garment Trading Adjudicator to tackle unfair purchasing practices in the fashion supply chain, following new evidence of widespread malpractice in garment manufacturing.

The recommendation follows a survey analysed by researchers from the University of Nottingham and the University of Leicester in collaboration with trade justice charity Transform Trade, which found systemic late payments, last-minute order changes without compensation and post-contract price reductions. Manufacturers reported that such practices shift financial risk from brands and retailers onto suppliers and ultimately workers.

Among respondents, 31 per cent reported order cancellations, while 78 per cent said brands failed to cover costs of last-minute changes to confirmed orders. A further 75 per cent stated prices were not adjusted to reflect minimum wage increases. Additionally, 67 per cent experienced order volumes being reduced without corresponding revisions to unit costs, and 44 per cent faced repeated payment extension requests. Ten per cent reported payments delayed by more than three months beyond agreed terms.

Researchers are urging the UK government to establish a Garment Trading Adjudicator after a survey by the University of Nottingham, University of Leicester and Transform Trade found widespread unfair purchasing practices in UK garment manufacturing.
The study highlights systemic late payments, cancellations and cost pressures affecting manufacturers and workers.

Manufacturers said these pressures had direct workforce consequences, including increased overtime to meet sudden order spikes for 73 per cent of workers, reduced hours following cancellations for 58 per cent, and job terminations for 29 per cent.

The survey also revealed limited confidence in formal dispute mechanisms. Only 22 per cent viewed the legal system as a viable route for redress, and none considered government or multistakeholder initiatives effective. Respondents cited financial and legal barriers, stating that pursuing action against brands was often unaffordable.

Dr Sabina Lawreniuk of the University of Nottingham’s School of Geography said, “Our research shows that current brand purchasing practices directly impact workers, resulting in precarious and insecure work across UK factories. Voluntary codes have proven insufficient. If we are serious about protecting workers and supporting a sustainable UK fashion industry, we need a Garment Trading Adjudicator to enforce fair practices across the sector.”

She added that the findings emphasise the need to rebalance relationships between brands and fashion manufacturers in the UK to support domestic manufacturing, sustainable business models, investment strategies, and to strengthen work and employment in the sector.

Professor Nikolaus Hammer of the University of Leicester also highlighted the importance of rebalancing these relationships to ensure sustainable UK production.

The researchers and Transform Trade said a sector regulator, like the Groceries Code Adjudicator, could help curb unfair purchasing practices and create greater accountability across fashion supply chains.

Fibre2Fashion News Desk (CG)



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New Zealand’s apparel imports ease down to $101 mn in Jan 2026

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New Zealand’s apparel imports ease down to 1 mn in Jan 2026



New Zealand’s apparel imports (HS ** and ** combined) declined to NZ$***.** million (~$***.* million) in January **** from NZ$***.** million in January ****, representing a *.* per cent year-on-year decrease. In volume terms, shipments fell to **.** million units from **.** million units, reflecting softer sourcing activity and continued inventory discipline among retailers.

Knitted apparel (HS **) imports declined to NZ$**.** million (~$**.* million) in January **** from NZ$**.** million in January ****, down *.* per cent year on year. Volumes also fell to **.** million units from **.** million units, suggesting weaker replenishment demand and continued emphasis on controlled inventory cycles across the retail segment.



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Bangladesh Bank to back initiatives to revive closed factories

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Bangladesh Bank to back initiatives to revive closed factories















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