Kontoor Brands, Inc. Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

BUSINESS SEGMENT INFORMATION (Tables)

BUSINESS SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 28, 2025

Financial Information for Reportable Segments

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."