Q2 2025 Kontoor Brands Inc Earnings Call Transcript
Key Points
- Kontoor Brands Inc (KTB) reported strong second-quarter results, with global revenue increasing by 8%, driven by a 7% increase in Wrangler's global revenue.
- The integration of Helly Hansen is progressing well, with revenue exceeding expectations and contributing significantly to the company's growth.
- Wrangler's US revenue increased by 9%, with notable growth in digital sales (16%) and wholesale (8%).
- The company raised its full-year revenue outlook, reflecting better-than-expected first-half results and improving visibility.
- Kontoor Brands Inc (KTB) is making strategic investments in product innovation, category expansion, and demand creation to accelerate growth and increase brand awareness.
- Lee's global revenue decreased by 6%, with declines in wholesale impacting overall performance.
- The company faces challenges from higher tariffs, which are expected to have a $15 million impact on operating profit in 2025.
- Inventory levels increased by 40% to $686 million, with a focus on improving Helly Hansen's working capital and inventory turnover.
- The environment remains uncertain, with potential headwinds from evolving trade policies and tariffs.
- Kontoor Brands Inc (KTB) is pausing share repurchase activity to focus on paying down acquisition-related debt and reducing leverage.
Greetings, and welcome to the Kontoor Brands' second-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Michael Karapetian, Vice President, Corporate Development and Enterprise Strategy and Investor Relations. Thank you, sir. You may begin.
Thank you, operator, and welcome to Kontoor Brandsâ second-quarter 2025 earnings conference call. Participants on todayâs call will make forward looking statements. These statements are based on current expectations and are subject to uncertainties that could cause actual results to materially differ. These uncertainties are detailed in documents filed with the SEC. We urge you to read our risk factors, cautionary language, and other disclosures contained in those reports.
Amounts referred to on todayâs call will often be on an adjusted dollar basis, which we clearly define in
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