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Kontoor Beats on Q3 EPS, Raises Outlook as Wrangler Grows, Lee Slips

The company navigates a supply-chain reset that temporarily lifted inventory.

Overview

  • Adjusted EPS reached $1.44 versus $1.36 expected as revenue rose 27% to $853.2 million, narrowly below estimates, and shares fell roughly 10% after the report.
  • Full-year adjusted EPS guidance increased to about $5.50 with revenue outlook reaffirmed toward the high end of $3.09 billion to $3.12 billion.
  • Wrangler revenue grew 2% with continued market-share gains, while Lee declined 8% including a $7 million impact from inventory actions in China.
  • Helly Hansen posted $193 million in Q3 revenue and is now expected to contribute about $460 million to 2025 sales.
  • Project Jeanius drove the closure of the Torreón, Mexico facility and a temporary inventory build that management expects to reduce in Q4, alongside a $0.53 dividend, $215 million of buyback capacity, and a planned $185 million voluntary debt repayment in Q4.