Overview
- Q3 adjusted EPS was $1.44 versus $1.36 expected, while revenue rose 27% to $853.2 million, narrowly below the $855.8 million consensus.
- Adjusted gross margin improved 80 basis points to 45.8%, including a 60-basis-point lift from the Helly Hansen acquisition; adjusted operating margin reached 14.3% and EBITDA margin 15.7%.
- Wrangler revenue grew 2% to $471 million with direct-to-consumer gains and a shipment timing drag, Lee fell 8% to $187 million reflecting China inventory actions and wholesale softness, and Helly Hansen delivered $193 million.
- Guidance now calls for about $5.50 in full-year adjusted EPS with revenue of $3.09–$3.12 billion; Q4 outlook is $1.64 in EPS on $970–$980 million in sales, and Helly Hansen is expected to contribute roughly $460 million this year.
- The board declared a $0.53 quarterly dividend payable Dec. 18 to holders of record Dec. 8, the company repaid $25 million of debt in Q3 and plans a $185 million voluntary term loan payment in Q4, and the stock recently traded down about 10%.