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)
In a press conference organised yesterday by the International Chamber of Commerce (ICC) Bangladesh and 15 other trade bodies, ICC Bangladesh president Mahbubur Rahman said: “Our entrepreneurs and business chambers strongly support graduation. However, we stress the need for a three- to five-year extension.”
Top trade bodies in Bangladesh have called for delaying the country’s scheduled graduation from the LDC status by five to six years.
Though Bangladesh has fulfilled all three UN criteria, the graduation will bring with it new responsibilities and risks, and therefore, careful preparation is needed to ensure the transition leads to lasting success, ICC Bangladesh president Mahbubur Rahman said.
Though Bangladesh has fulfilled all three UN criteria—gross national income, human assets index and economic vulnerability index—in two consecutive reviews, such a graduation will bring with it new responsibilities and risks, and therefore, careful preparation is needed to ensure the transition leads to lasting success, Rahman said.
Risks include the possible loss of duty-free market access in key export destinations where tariffs of up to 12 per cent could be imposed, and that may lead to a 6-14 per cent drop in exports, he said.
“The press conference expressed optimism that the extended period would provide greater scope for export diversification, development of skilled manpower in automation and artificial intelligence (AI), and building capacity to face future challenges, thereby ensuring sustainable competitiveness in the global market,” the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) posted on Facebook.
The business leaders also raised concerns over the end of special and differential treatment by the World Trade Organization (WTO). “This will make patent rules stricter for the pharmaceutical sector and increase compliance costs,” Rahman cautioned.
Rahman noted that several countries had deferred their LDC graduation in the last.
The proposed five- to six-year deferment would offer Bangladesh the time to secure trade deals with several countries and economic blocs, he added.
Fibre2Fashion News Desk (DS)
Published
August 28, 2025
The British Retail Consortium is getting a female chair for the very first time with former Matalan and Co-op exec Jo Whitfield to take over from Andy Higginson in early October.
Whitfield has a quarter of a century of experience in retail and is currently a non-executive and audit chair at Asda, a non-executive and chair of the ethics committee at Factory International, and host of the Manchester International Festival.
She also played a leading industry role campaigning alongside the BRC to achieve better safety recognition and a change to the law to protect retail shopworkers.
She’ll be joined by Eve Williams, as a new non-executive director on the BRC board. Again, she’s hugely experienced and is VP and general manager of eBay UK as well as having held executive marketing and customer roles in both eBay and at ASOS, before being appointed to her current role.
Whitfield said: “I’m honoured to be joining the BRC as its first female Chair, and to be supporting Helen and her team at such a pivotal time. Retail is an incredibly valuable industry, employing over 3 million people who support their families through their work. It’s also uniquely inclusive and many of us have built our careers from the shop floor or from working-class backgrounds, rising into leadership roles and enjoying fulfilling careers.
“Retailers are at the heart of communities, and we’re acutely aware of the many government policies currently under consideration that could either support or hinder our industry. This is a critical moment for us all and now more than ever, we need a strong, united voice. I look forward to working closely with Helen and the team to ensure the interests of our industry are championed and protected.”
And Helen Dickinson, BRC CEO, added: “Jo and Eve join the board as we deal with multiple public policy headwinds and more to do on big issues like climate change, inclusion, and creating the right environment for growth and investment. I know how passionate they both are on these areas and particularly on people so it’s great to welcome two more women to our board and our first female chair.
“It has been a pleasure working with Andy and I would like to thank him for his pragmatic, down-to-earth advice, leadership and support over the past two-and-a-half years. We are a stronger organisation for it.”
Copyright © 2025 FashionNetwork.com All rights reserved.
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)
Mike Vrabel is back to try to help the Patriots recapture their glory days
Defer LDC graduation by 3-5 years, demand Bangladesh trade bodies
White House says Trump has fired CDC Director Susan Monarez, will name replacement soon
-
Business1 week agoRSS Feed Generator, Create RSS feeds from URL
-
Tech1 week agoKorea develops core radar components for stealth technology
-
Fashion1 week agoTariff pressure casts shadow on Gujarat’s textile landscape
-
Fashion1 week agoRent the Runway to swap debt for equity in revival effort
-
Fashion1 week agoUS retailers split on holiday prospects amid consumer caution
-
Tech1 week agoQi2’s Magnetic Wireless Charging Finally Arrives on Android
-
Sports1 week ago
Dan Quinn says Terry McLaurin is healthy, ‘closer’ to Commanders return
-
Tech2 days agoReview: Google Pixel 10 Series