| Components of Restructuring Charges |
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:
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Three Months Ended June |
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Six Months Ended June |
| (In thousands) |
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2025 |
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2024 |
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2025 |
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2024 |
| Severance and employee-related benefits |
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$ |
2,801 |
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$ |
2,004 |
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$ |
5,280 |
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$ |
3,985 |
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| Asset impairments |
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— |
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433 |
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— |
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|
601 |
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| Inventory write-downs |
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— |
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219 |
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— |
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1,902 |
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| Other |
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518 |
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|
648 |
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1,361 |
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|
1,427 |
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| Total restructuring charges |
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$ |
3,319
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$ |
3,304
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$ |
6,641
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$ |
7,915
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The following table presents the classification of these restructuring costs in the Company's statements of operations:
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Three Months Ended June |
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Six Months Ended June |
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| (In thousands) |
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2025 |
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2024 |
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2025 |
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2024 |
| Cost of goods sold |
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$ |
515 |
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$ |
3,171 |
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$ |
1,592 |
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$ |
6,210 |
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| Selling, general, and administrative expenses |
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2,804 |
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|
133 |
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5,049 |
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1,705 |
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| Total |
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$ |
3,319
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$ |
3,304
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$ |
6,641
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$ |
7,915
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The following table presents these restructuring costs by business segment:
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Three Months Ended June |
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Six Months Ended June |
| (In thousands) |
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2025 |
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2024 |
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2025 |
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2024 |
| Wrangler |
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$ |
518 |
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$ |
2,882 |
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$ |
1,456 |
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$ |
6,131 |
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| Lee |
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— |
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— |
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— |
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40 |
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| Corporate and other |
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2,801 |
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|
422 |
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5,185 |
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1,744 |
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| Total |
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$ |
3,319
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$ |
3,304
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$ |
6,641
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$ |
7,915
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| Activity in Restructuring |
The following table presents activity in the restructuring accrual for the six-month period ended June 2025:
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| (In thousands) |
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| Accrual at December 2024 |
$ |
1,895
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| Charges |
6,270 |
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| Cash payments |
(3,434) |
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| Adjustments to accruals |
(336) |
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| Currency translation |
10 |
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| Balance, June 2025 |
$ |
4,405
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