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 $50 million.
Fibre2Fashion News Desk (SG)
A review of the trade and sustainable development provisions of the ITA is under way.
EU high representative for foreign affairs and security policy Kaja Kallas recently met Chilean Minister of Foreign Affairs Alberto van Klaveren. Both co-chaired the first EU-Chile Joint Council under the Advanced Framework Agreement in Brussels.
The EU and Chile are committed to deepening their trade and investment relations under the Interim Trade Agreement, which came into force on February 1 and will remain in force until the new Advanced Framework Agreement has been fully ratified.
Both sides will continue to cooperate on ensuring reliable and sustainable supply chains, including through diversification and support to strategic investments.
The first EU-Chile Trade Council meeting was held under the new ITA, according to an EU release.
The EU is Chile’s third-largest trade partner and the top source of foreign direct investment (FDI).
Both sides will continue to cooperate on ensuring reliable and sustainable supply chains, including through diversification and support to strategic investments, a joint statement issued said.
Chile welcomed the interest of the EU in establishing a dialogue with the member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Both parties affirm their ambition to translate this dialogue into a shared agenda.
Both sides remain committed to ensuring the effective implementation of the Advanced Framework Agreement, and to achieving its full ratification.
The provisional application of the EU-Chile Advanced Framework Agreement began on June 1, 2025.
Fibre2Fashion News Desk (DS)
Published
November 30, 2025
Chanel has appointed A$AP Rocky as a new brand ambassador and debuted his tenure with a teaser video shot in New York co-starring Margaret Qualley.
The video appeared Sunday just 48 hours before Chanel’s couturier Michel Blazy will stage his debut collection of Métiers d’Art also in New York. It’s a unique line first created by Karl Lagerfeld that highlights the unique stable of artisans Chanel has assembled in such skills as embroidery, pleating, glove-making and costume jewelry.
Directed by Michel Gondry, the 2.49-minute short opens with the stars waking up in the bed of a walkup apartment in Williamsburg. Where, after a quick peck on her lover’s forehead, Qualley disappears into a tiny bathroom, before magically changing out of her blue nightie and reappearing in a red, white and blue houndstooth Chanel jacket, paired with pale blue pants, her hair in a chignon.
https://www.youtube.com/watch?v=live
No sooner than she has disappeared, than A$AP leaps out of bed and descends the tenement building’s outside steel stairs and sets off on a mad dash after Qualley. This leads to him swimming under the Brooklyn Bridge, and running north through the Lower East Side, before finally catching up with Qualley at Astor Place station. All the action backed up my moody ambient music courtesy of Le Motel.
In between, the rapper and husband of Rihanna, manages to find time to stop in two discount stores to acquire pants and a blazer. Arriving just in time, to genuflect onto one knee, and hold out a small white Chanel box, containing one assumes a diamond engagement ring, at the station entrance. The sight of which leads the actress to leap into the air in paroxysm of joy, before the happy couple march arm and arm back into the subway.
And off one assumes to attend the Métiers d’Art show, which will be revealed on Tuesday, 8 p.m. NYC time.
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Ms. Burgoyne joined lululemon in 2006 and became the company’s first President in 2020. Throughout her tenure, she has assumed roles of increasing responsibility and led the North America business through periods of rapid growth and expansion.
Lululemon Athletica has announced that Celeste Burgoyne, president of the Americas and global guest innovation, will leave at the end of December 2025 after 19 years with the brand.
The company will consolidate regional leadership and has appointed André Maestrini as president and chief commercial officer, giving him global oversight of stores, regions, digital channels and commercial strategy.
“We are grateful for Celeste’s leadership and significant contributions to lululemon’s business and culture over the past 19 years. She has been instrumental in growing our footprint in the Americas, creating high-quality guest experiences, and mentoring our teams across the organization,” said Calvin McDonald, Chief Executive Officer, lululemon. “I deeply appreciate her partnership and friendship, and we wish her all the best in the future.”
“My time at lululemon has been both inspiring and rewarding beyond belief,” said Ms. Burgoyne. “I am so proud of what we have accomplished as an organization since I joined in 2006 and know the team will take the company to even greater heights in the years to come. I look forward to continuing to support the brand as a lifelong fan.”
In conjunction with this announcement, lululemon has made the decision to consolidate regional leadership across the company and appoint André Maestrini as President and Chief Commercial Officer, effective immediately. Mr. Maestrini will continue to report directly to Mr. McDonald.
In this newly created role, Mr. Maestrini will provide integrated oversight of all of lululemon’s regions, stores, and digital channels globally. He will also oversee lululemon’s global commercial strategy with a focus on continued market expansion, revenue generation, and accelerating best practice sharing, across all regions including North America.
Mr. Maestrini joined lululemon in 2021 as Executive Vice President of International. In his current role, he has overseen lululemon’s operations in EMEA, APAC, and China Mainland, and has helped to more than quadruple lululemon’s international revenues.
“André has demonstrated a proven ability to unlock opportunities, advance our global expansion, and deliver growth across multiple markets,” said Mr. McDonald. “Leveraging operational discipline, deep guest insights, and extensive brand-building experience, André is the ideal person to lead our business across all markets, including North America, as we remain focused on delivering value for our guests, employees, and shareholders.”
Before joining lululemon, Mr. Maestrini spent 14 years at adidas in various senior roles across the globe. During this time, he served in a number of General Manager positions where he helped grow the company’s global sports categories and regional markets. Prior to adidas, Mr. Maestrini held marketing roles at The Coca-Cola Company, Danone, and Kraft Jacobs Suchard.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
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