Fashion
US’ Kontoor Brands lifts FY25 outlook as Q2 revenue hits $658 mn
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)
The factory is likely to create 2,000 direct jobs and export nine-tenths of its production abroad.
SCZONE chairman Waleid Gamal El-Dien said the Qantara West Industrial Zone now hosts 34 projects with investments worth $859.3 million, providing over 48,000 direct jobs.
Egypt’s Suez Canal Economic Zone has signed a deal with Turkiye’s Nil Orme to set up a $35-million textile-clothing unit in the former’s Qantara West Industrial Zone.
Meanwhile, Turkiye’s Sahinler Holding Group is planning to expand its operations in Egypt, investing over $41 million to expand its garment manufacturing and planning to complete its third sportswear factory in Egypt by the yearend.
Meanwhile, Turkish conglomerate Sahinler Holding Group is planning to expand its operations in Egypt with investments exceeding $100 million, according to an Egyptian media outlet. It is now investing over EGP 2 billion (~$41 million) to expand its ready-to-wear garment manufacturing.
This includes the completion of its third sportswear factory in Egypt by the end of 2026. It will raise production lines to 34 from the current 10.
A fourth garment factory for the Zara brand is also being planned in the third phase of Robbiki City, east of Cairo.
Founded in 1982, Sahinler now operates two sportswear factories in Egypt with a total investment of $50 million, alongside five additional facilities in Turkiye, Bulgaria, Germany and France.
Fibre2Fashion News Desk (DS)
Published
August 28, 2025
Expect big changes in how consumers shop. Oh, and move over Baby Boomers, because Gen X-ers are now the biggest spenders.
This year, Generation X (born between 1965 and 1980) consumers will outspend Baby Boomers (1946-1964) for the first time globally, and will remain the biggest spenders until at least 2033, according to home delivery giant Parcelhero.
It says the passing of the baton “will mean big changes on the High Street, online and even to society in general”.
New figures revealed by the data analyst and consumer researcher NeilsenIQ show Gen X consumers will spend £11.28 trillion this year worldwide, eclipsing the Baby Boomers’ £10.02 trillion. In fact, Baby Boomers are also likely to be outspent by Millennials (born between 1981 and 1996) this year.
Millennials’ spending could reach £10.91 trillion, knocking Boomers into third place.
Parcelhero’s head of Consumer Research, David Jinks, said: “While the postwar Boomer generation has seen the values of their houses and pensions soar, leaving many comfortably off, many of them are now retired. That means Generation Xs… are now the UK’s biggest spenders.
“There are approximately 13.7 million people in the UK who belong to Generation X, making up about 20% of the total population. [They] are now the biggest earners and highest contributors of tax, despite being a smaller cohort than the 14.1 million Millennials.”
Jinks added: “The new dominance of Gen X is going to mean significant changes, both on the High Street and online, as their preferences start to lead many retail trends. Gen X-ers have been called ‘the latch key generation’ as many grew up with both their parents working and/or divorced, letting themselves in when they returned home from school. Consequently, Gen X-ers became one of the most self-reliant of recent generations, as well as the last to grow up without the support of mobile phones and the internet.
“Whereas Boomers still preferred to make their biggest spending commitments in-store, Gen X is equally happy to splash the cash online. They may be the last analogue generation but they are also enthusiastic digital adopters.
He also noted that brand loyalty is highest among Gen X consumers, “who respond best to transparency, product performance and customer reviews, rather than flashy advertising”, according to research by the customer engagement platform Salesfloor.
The report said Gen X are also the most omnichannel of all generations. They research carefully online, reading experts’ and consumers’ reviews, but are equally likely to make their final purchase online or in-store.
“It’s also a generation less likely to be swayed by the opinions or promotions of online influencers. Indeed, Gen X may be the last generation willing to pay significantly more for proven quality and reliability.”
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By
DPA
Translated by
Nazia BIBI KEENOO
Published
August 28, 2025
The Austrian luxury hosiery manufacturer Wolford reported a 23.4% drop in sales for the first half of the year on Thursday.
Compared to the previous year, revenue decreased by €10.1 million to €33.0 million (H1 2024: €43.1 million). The company attributed this mainly to the lingering impact of delivery delays and store closures that had been initiated in the previous year. Although Wolford stated that these issues were structurally resolved by the end of 2024, their effects continued to impact sales during the first quarter of 2025.
Despite the steep revenue decline, the company reduced its cost base, resulting in a relatively stable EBIT compared to last year. Recent streamlining and efficiency measures contributed to this outcome. Wolford did not disclose specific figures and plans to publish its full half-year report on 19 September.
The results should be viewed “in the context of the expected ongoing transition phase in which the company is actively implementing a comprehensive operational transformation aimed at restoring long-term resilience and profitability.” The company expects the first signs of recovery to appear in the second half of the year.
Looking ahead to 2025, Wolford — part of the Lanvin Group — said it does not anticipate trade policy or the broader economic environment to have a significant negative impact on earnings or sales for the second half or the full year.
FNW with dpa
This article is an automatic translation.
Click here to read the original article.
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