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)

9 Months Ended

Sep. 27, 2025

Schedule of 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 September				Nine Months Ended September

(In thousands)	2025		2024		2025		2024
Wrangler
Net revenues (1)	$	471,231	$	464,107	$	1,352,756	$	1,302,846
Cost of goods sold	251,155		260,448		725,368		733,506
Selling, general and administrative expenses	101,774		103,334		310,552		301,785
Other segment items (2)	1,889		2,572		5,484		6,797
Segment profit	$	116,413	$	97,753	$	311,352	$	260,758
Lee
Net revenues (1)	$	186,743	$	202,343	$	552,270	$	597,085
Cost of goods sold	102,353		107,822		290,888		312,727
Selling, general and administrative expenses	66,818		70,472		197,454		209,886
Other segment items (2)	861		694		2,353		2,656
Segment profit	$	16,711	$	23,355	$	61,575	$	71,816
Helly Hansen
Net revenues (1)	$	185,930	$	—	$	212,602	$	—
Cost of goods sold	105,053		—		117,602		—
Selling, general and administrative expenses	72,955		—		91,866		—
Other segment items	(87)		—		(62)		—
Segment profit	$	8,009	$	—	$	3,196	$	—

Total reportable segment profit	$	141,133	$	121,108	$	376,123	$	332,574
Corporate and other expenses (3)	(79,617)		(26,307)		(142,756)		(82,745)
Interest expense	(18,972)		(11,178)		(42,265)		(30,852)
Interest income	349		2,965		6,686		8,006
Profit (loss) related to other revenues (4)	(1,573)		185		(2,827)		(1,074)
Income before income taxes	$	41,320	$	86,773	$	194,961	$	225,909

(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 (expense) income, net".

(3) "Corporate and other expenses" includes a gain of $24.1 million for the nine months ended September 2025 related to the foreign currency exchange contracts to hedge the purchase price of the Acquisition. There were no hedge gains recognized for the three months ended September 2025. Additionally, the Company recorded $38.1 million of restructuring and transformation charges related to the closure of a portion of our manufacturing facilities during the three and nine months ended September 2025.
(4) "Profit (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."