Annual report [Section 13 and 15(d), not S-K Item 405]

BUSINESS SEGMENT INFORMATION (Tables)

v3.25.4
BUSINESS SEGMENT INFORMATION (Tables)
 12 Months Ended
Jan. 03, 2026
Segment Reporting [Abstract]  
Schedule of Financial Information for Reportable Segments
The following table presents financial information for the Company's reportable segments and income before income taxes:
Year Ended December
(In thousands) 2025 2024 2023
Wrangler
Net revenues (1)
$ 1,914,622  $ 1,805,989  $ 1,754,130 
Cost of goods sold 1,030,793  1,023,548  1,052,091 
Selling, general and administrative expenses 436,875  407,897  386,032 
Other segment items (2)
6,984  8,235  8,486 
Segment profit
 $ 439,970  $ 366,309  $ 307,521 
Lee
Net revenues (1)
$ 750,368  $ 790,625  $ 842,520 
Cost of goods sold 403,224  413,344  459,859 
Selling, general and administrative expenses 275,481  284,335  282,246 
Other segment items (2)
2,722  3,284  2,267 
Segment profit
 $ 68,941  $ 89,662  $ 98,148 
Helly Hansen
Net revenues (1)
$ 459,716  $ —  $ — 
Cost of goods sold 241,512  —  — 
Selling, general and administrative expenses 182,588  —  — 
Other segment items 3,821  —  — 
Segment profit $ 31,795  $ —  $ — 
Total reportable segment profit $ 540,706  $ 455,971  $ 405,669 
Corporate and other expenses (3)
(196,390) (123,240) (96,075)
Interest expense (62,162) (40,824) (40,408)
Interest income 7,299  11,149  3,791 
Profit (loss) related to other revenues (4)
3,808  (1,633) (1,078)
Income before income taxes $ 293,261  $ 301,423  $ 271,899 
(1) Refer to Note 3 to the Company's financial statements in this Form 10-K 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-K. 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 $24.1 million for the twelve months ended December 2025 related to the foreign currency exchange contracts to hedge the purchase price of the Acquisition. Additionally, the Company recorded $43.5 million of restructuring and transformation charges related to the closure of a portion of our manufacturing facilities, $50.8 million of acquisition and integration-related costs and $34.3 million of business optimization activities associated with the continued execution of Project Jeanius during the twelve months ended December 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.
Schedule of Revenue from External Customers and Property, Plant, and Equipment by Geographic Area
The following table presents supplemental information of net revenues by geographic area based on the location of the customer:
Year Ended December
(In thousands) 2025 2024 2023
Revenues:
U.S. $ 2,287,269  $ 2,087,049  $ 2,060,679 
International 865,187  520,529  546,793 
Total $ 3,152,456  $ 2,607,578  $ 2,607,472 
The following table presents "property, plant and equipment, net" recorded in the Company's balance sheets by geographic area based on physical location:
(In thousands) December 2025 December 2024
Property, plant and equipment, net:
U.S. $ 84,446  $ 68,601 
International 46,282  34,699 
Total $ 130,728  $ 103,300