Helly Hansen Growth
Helly Hansen exceeded expectations with revenue growth of 11% and $0.03 of earnings accretion. The brand won six Red Dot Design awards and is on track for over 70% growth in China this year.
Wrangler Market Share Gains
Wrangler gained market share for the 14th consecutive quarter with a 1% global revenue increase and 12% growth in digital sales. The female business grew by 20%, and Western grew high single digits.
Improved Financial Outlook
Kontoor Brands raised its full-year outlook, expecting revenue at the upper end of $3.09 billion to $3.12 billion, a 19% to 20% increase. Adjusted gross margin is projected to be approximately 46.4%, and adjusted EPS is expected at $5.50.
Debt Reduction
The company made an additional $25 million voluntary debt repayment in Q3 and expects to reduce debt by $185 million in Q4, aiming to return to approximately 2x net leverage by year-end.