Quarterly report [Sections 13 or 15(d)]

BUSINESS SEGMENT INFORMATION

v3.26.1
BUSINESS SEGMENT INFORMATION
 6 Months Ended
Jul. 04, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENT INFORMATION BUSINESS SEGMENT INFORMATION
The Company has two reportable segments:
•Wrangler — Wrangler® branded denim, apparel, footwear and accessories.
•Helly Hansen — Helly Hansen® branded outdoor and workwear apparel, footwear and accessories.
The Company considers its chief executive officer to be its chief operating decision maker. The chief operating decision maker allocates resources and assesses performance based on the global brand net revenues and segment profit of Wrangler® and Helly Hansen®, which are the Company's reportable segments. Segment profit is defined as income from continuing operations before income taxes, interest expense, interest income and corporate and other expenses. Segment assets and segment expenditures for long-lived assets are not regularly provided to or used by the chief operating decision maker and thus are not disclosed.
In addition, we report an "Other" category to reconcile the Company's segment revenues to total revenues and segment profit to income from continuing operations before income taxes. Loss related to other revenues includes the operating results of the Musto® and Chic® brands, as well as other company-owned brands and private label apparel, and the Rock & Republic® brand through the date of disposition of March 3, 2026. Results of the Musto® brand have been included since the Acquisition on May 31, 2025. The businesses within the Other category, either individually or in the aggregate, do not meet the criteria to be considered reportable segments.
Accounting policies utilized for internal management reporting at the individual segments are consistent with those disclosed in the Company's 2025 Annual Report on Form 10-K.
Corporate and other expenses, including certain acquisition and integration-related costs and restructuring and transformation costs, incremental costs previously allocated to the Lee segment, as well as interest expense and interest income, are not controlled by segment management and therefore are excluded from the measurement of segment profit.
The following table presents financial information for the Company's reportable segments and income from continuing operations before income taxes:
Three Months Ended June Six Months Ended June
(In thousands) 2026 2025 2026 2025
Wrangler
Net revenues (1)
$ 469,047  $ 461,279  $ 904,886  $ 881,525 
Cost of goods sold 218,586  248,029  420,551  474,213 
Selling, general and administrative expenses 109,274  102,949  219,020  208,778 
Other segment items (2)
2,247  2,210  4,606  3,595 
Segment profit $ 138,940  $ 108,091  $ 260,709  $ 194,939 
Helly Hansen
Net revenues (1)
$ 106,811  $ 26,672  $ 272,291  $ 26,672 
Cost of goods sold 43,763  12,549  114,764  12,549 
Selling, general and administrative expenses 60,614  18,911  135,321  18,911 
Other segment items (2)
557  25  676  25 
Segment profit
 $ 1,877  $ (4,813) $ 21,530  $ (4,813)
Total reportable segment profit $ 140,817  $ 103,278  $ 282,239  $ 190,126 
Corporate and other expenses (3)
(51,667) (14,747) (105,411) (80,302)
Interest expense (15,673) (13,485) (31,757) (23,293)
Interest income 1,843  2,820  4,027  6,139 
Loss related to other revenues (4)
(2,368) (1,037) (2,543) (1,254)
Income from continuing operations before income taxes $ 72,952  $ 76,829  $ 146,555  $ 91,416 
(1) Refer to Note 4 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" primarily includes funding fees related to the sale of trade accounts receivable program discussed in Note 6 to the Company's financial statements in this Form 10-Q. Funding fees are reflected in the Company's statements of operations on a continuing operations basis within "Other (expense) income, net".
(3) Costs previously allocated to the Lee segment that did not qualify for classification as discontinued operations and are reported within "Corporate and other expenses" above are as follows: for the three and six months ended June 2026, $14.2 million and $25.5 million, respectively, and for the three and six months ended June 2025, $8.4 million and $17.2 million, respectively.
(4) "Loss related to other revenues" includes the operating results of the Musto®, and Chic® brands, as well as other company-owned brands and private label apparel, along with the Rock & Republic® brand through the date of disposition, for purposes of reconciling "total reportable segment profit" to "income from continuing operations before income taxes."