Kontoor Brands Reports Q1 2025 Results and Updates Outlook

Kontoor Brands ( (KTB) ) has released its Q1 earnings. Here is a breakdown of the information Kontoor Brands presented to its investors.

Kontoor Brands, Inc. is a global lifestyle apparel company known for its iconic brands, Wrangler and Lee, specializing in designing, manufacturing, and distributing high-quality apparel. In its first quarter of 2025, Kontoor Brands reported a slight decrease in revenue to $623 million, while adjusted gross margin improved by 200 basis points to 47.7%. The company also saw a 4% increase in adjusted operating income, reaching $96 million, and a 3% rise in adjusted EPS to $1.20. Notably, inventory levels decreased by 12%, and the company declared a regular quarterly cash dividend of $0.52 per share. Kontoor’s strategic acquisition of Helly Hansen is expected to significantly boost its 2025 revenue and earnings, contributing approximately $425 million to revenue and $37 million to adjusted operating income. The company’s updated outlook anticipates a revenue increase of 17% to 19% for the year, with adjusted EPS projected to grow by 10% to 12%. Despite facing challenges such as tariff changes, Kontoor Brands remains optimistic about its growth prospects, driven by strategic initiatives like Project Jeanius and the Helly Hansen acquisition.