Quarterly report [Sections 13 or 15(d)]

RESTRUCTURING

v3.26.1
RESTRUCTURING
 3 Months Ended
Apr. 04, 2026
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
Restructuring charges relate to costs associated with exit or disposal activities. During the three months ended March 2026 and March 2025, the Company incurred restructuring and transformation charges related to business optimization and other actions to streamline and transfer select production within our internal manufacturing network.
The following table summarizes the restructuring charges recorded during the three months ended March 2026 and March 2025:
Three Months Ended March
(In thousands)
2026 2025
Severance and employee-related benefits $ 731  $ 2,479 
Other 2,199  843 
Total restructuring charges $ 2,930  $ 3,322 
The following table presents the classification of these restructuring costs in the Company's statements of operations:
Three Months Ended March
(In thousands) 2026 2025
Cost of goods sold $ 2,828  $ 1,077 
Selling, general, and administrative expenses 102  2,245 
Total $ 2,930  $ 3,322 
The following table presents these restructuring costs by business segment:
Three Months Ended March
(In thousands)
2026 2025
Wrangler $ 168  $ 938 
Corporate and other 2,762  2,384 
Total $ 2,930  $ 3,322 
The following table presents activity in the restructuring accrual for the three-month period ended March 2026:
(In thousands)
Accrual at December 2025 $ 8,516 
Charges(1)
2,136 
Cash payments (4,289)
Adjustments to accruals (211)
Balance, March 2026 $ 6,152 
(1) The Company also recorded approximately $0.8 million of non-cash and other charges related to the closure of a portion of our manufacturing facilities and streamlining and transferring select production within our internal manufacturing network.
All of the $6.2 million restructuring accrual reported in the Company's balance sheet at March 2026 is expected to be paid out within the next 12 months and is classified within "accrued and other current liabilities." Of the $8.5 million restructuring accrual reported in the Company's balance sheet at December 2025, $8.2 million was classified within "accrued and other current liabilities," and the remaining $0.3 million was classified within "other liabilities."