Quarterly report [Sections 13 or 15(d)]

RESTRUCTURING

v3.25.2
RESTRUCTURING
6 Months Ended
Jun. 28, 2025
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
Restructuring charges relate to costs associated with exit or disposal activities. During the three and six months ended June 2025 and June 2024, the Company incurred the following charges related to business optimization and actions to streamline and transfer select production within our internal manufacturing network:
Three Months Ended June Six Months Ended June
(In thousands)
2025 2024 2025 2024
Severance and employee-related benefits $ 2,801  $ 2,004  $ 5,280  $ 3,985 
Asset impairments —  433  —  601 
Inventory write-downs —  219  —  1,902 
Other 518  648  1,361  1,427 
Total restructuring charges $ 3,319  $ 3,304  $ 6,641  $ 7,915 
The following table presents the classification of these restructuring costs in the Company's statements of operations:
Three Months Ended June Six Months Ended June
(In thousands) 2025 2024 2025 2024
Cost of goods sold $ 515  $ 3,171  $ 1,592  $ 6,210 
Selling, general, and administrative expenses 2,804  133  5,049  1,705 
Total $ 3,319  $ 3,304  $ 6,641  $ 7,915 
The following table presents these restructuring costs by business segment:
Three Months Ended June Six Months Ended June
(In thousands)
2025 2024 2025 2024
Wrangler $ 518  $ 2,882  $ 1,456  $ 6,131 
Lee —  —  —  40 
Corporate and other 2,801  422  5,185  1,744 
Total $ 3,319  $ 3,304  $ 6,641  $ 7,915 
The following table presents activity in the restructuring accrual for the six-month period ended June 2025:
(In thousands)
Accrual at December 2024 $ 1,895 
Charges 6,270 
Cash payments (3,434)
Adjustments to accruals (336)
Currency translation 10 
Balance, June 2025 $ 4,405 
All of the $4.4 million restructuring accrual reported in the Company's balance sheet at June 2025 is expected to be paid out within the next 12 months and was classified within "accrued and other current liabilities." Of the $1.9 million restructuring accrual reported in the Company's balance sheet at December 2024, $1.8 million was classified within "accrued and other current liabilities," and the remaining $0.1 million was classified within "other liabilities."