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Kontoor Brands Raises 2025 Outlook Amid Strong Q2 and Helly Hansen Boost
8 Aug
Summary
- Kontoor's Q2 2025 revenue up 8% to $658M, driven by Helly Hansen acquisition
- Company raises full-year 2025 revenue outlook to 19-20% growth
- Helly Hansen expected to contribute $455M to 2025 revenue
In the second quarter of 2025, Kontoor Brands reported impressive results, driven by better-than-expected organic revenue growth, gross margin expansion, operating efficiency, and cash generation. The company's performance was further bolstered by a strong showing from its newest acquisition, the Norwegian performance brand Helly Hansen, which closed on May 31.
Kontoor's revenue for the second quarter increased 8% to $658 million compared to the prior year. Following this strong first-half performance and increased clarity around its tariff mitigation strategies, the company is now raising its full-year 2025 outlook. Revenue is expected to be in the range of $3.09 to $3.12 billion, representing growth of approximately 19 to 20 percent compared to the prior year. This is an improvement from the previous outlook of 17 to 19 percent growth.
Additionally, Kontoor now expects Helly Hansen to contribute approximately $455 million to 2025 revenue, up from the prior outlook of $425 million. The company's outlook assumes a 30% reciprocal tariff on China and a 20% reciprocal tariff on all other sourcing countries, except for Mexico. Kontoor's imports from Mexico to the U.S. remain exempt under USMCA.
