Quarterly report [Sections 13 or 15(d)]

BUSINESS SEGMENT INFORMATION

v3.25.2
BUSINESS SEGMENT INFORMATION
 6 Months Ended
Jun. 28, 2025
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION BUSINESS SEGMENT INFORMATION
The Company has three reportable segments:
•Wrangler — Wrangler® branded denim, apparel, footwear and accessories.
•Lee — Lee® branded denim, apparel, footwear and accessories.
•Helly Hansen — Helly Hansen® branded outdoor and workwear apparel, footwear and accessories.
The Company considers its chief executive officer to be its chief operating decision maker. The chief operating decision maker allocates resources and assesses performance based on the global brand net revenues and segment profit of Wrangler®, Lee® and Helly Hansen®, which are the Company's reportable segments. Segment profit is defined as income before income taxes, interest expense, interest income and corporate and other expenses. Segment assets and segment expenditures for long-lived assets are not regularly provided to or used by the chief operating decision maker and thus are not disclosed.
In addition, we report an "Other" category to reconcile the Company's segment revenues to total revenues and segment profit to income before income taxes. Other includes sales and licensing of the Musto®, Chic® and Rock & Republic® brands, as well as other company-owned brands and private label apparel, and the associated costs. The businesses within the Other category, either individually or in the aggregate, do not meet the criteria to be considered reportable segments.
Accounting policies utilized for internal management reporting at the individual segments are consistent with those disclosed in the Company's 2024 Annual Report on Form 10-K.
Corporate and other expenses, including certain acquisition and integration-related costs and restructuring and transformation costs, as well as interest expense and interest income, are not controlled by segment management and therefore are excluded from the measurement of segment profit.
The following table presents financial information for the Company's reportable segments and income before income taxes:
Three Months Ended June Six Months Ended June
(In thousands) 2025 2024 2025 2024
Wrangler
Net revenues (1)
$ 461,279  $ 429,245  $ 881,525  $ 838,739 
Cost of goods sold 248,029  239,779  474,213  473,058 
Selling, general and administrative expenses 102,949  99,049  208,778  198,451 
Other segment items (2)
2,210  2,078  3,595  4,225 
Segment profit $ 108,091  $ 88,339  $ 194,939  $ 163,005 
Lee
Net revenues (1)
$ 165,627  $ 175,299  $ 365,527  $ 394,742 
Cost of goods sold 90,527  93,680  188,535  204,905 
Selling, general and administrative expenses 61,899  67,336  130,636  139,414 
Other segment items (2)
784  916  1,492  1,962 
Segment profit $ 12,417  $ 13,367  $ 44,864  $ 48,461 
Helly Hansen
Net revenues (1)
$ 26,672  $ —  $ 26,672  $ — 
Cost of goods sold 12,549  —  12,549  — 
Selling, general and administrative expenses 18,911  —  18,911  — 
Other segment items
 25  —  25  — 
Segment loss
 $ (4,813) $ —  $ (4,813) $ — 
Total reportable segment profit $ 115,695  $ 101,706  $ 234,990  $ 211,466 
Corporate and other expenses (3)
(6,360) (28,378) (63,139) (56,438)
Interest expense (13,485) (10,382) (23,293) (19,674)
Interest income 2,897  2,616  6,337  5,041 
Loss related to other revenues (4)
(1,037) (1,106) (1,254) (1,259)
Income before income taxes $ 97,710  $ 64,456  $ 153,641  $ 139,136 
(1) Refer to Note 3 to the Company's financial statements in this Form 10-Q for the reconciliation of reportable segment revenues to consolidated net revenues.
(2) "Other segment items" for the Wrangler® and Lee® segments primarily includes funding fees related to the sale of trade accounts receivable program discussed in Note 5 to the Company's financial statements in this Form 10-Q. Funding fees are reflected in the Company's statements of operations within "other income (expense), net".
(3) "Corporate and other expenses" includes a gain of $33.0 million and $24.1 million for the three and six months ended June 2025, respectively, related to the foreign currency exchange contracts to hedge the purchase price of the Acquisition
(4) "Loss related to other revenues" includes sales and licensing of the Musto®, Chic® and Rock & Republic® brands, as well as other company-owned brands and private label apparel, and the associated costs, for purposes of reconciling "total reportable segment profit" to consolidated "income before income taxes."