Quarterly report [Sections 13 or 15(d)]

RESTRUCTURING

v3.26.1
RESTRUCTURING
 6 Months Ended
Jul. 04, 2026
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
Restructuring charges relate to costs associated with exit or disposal activities. During the three and six months ended June 2026 and June 2025, the Company incurred restructuring and transformation charges as part of Project Jeanius related to the closure and sale of a manufacturing facility. During the three months ended June 2026, we sold the manufacturing facility for a gain of $15.4 million included in "cost of goods sold" in the Company's statements of operations and as part of "corporate and other" in the Company's business segment information.
The following table summarizes the restructuring (gains) charges recorded during the three and six months ended June 2026 and June 2025:
Three Months Ended June Six Months Ended June
(In thousands)
2026 2025 2026 2025
Severance and employee-related benefits $ 404  $ 2,801  $ 1,135  $ 5,280 
Other (13,173) 518  (10,974) 1,361 
Total restructuring (gains) charges $ (12,769) $ 3,319  $ (9,839) $ 6,641 
The following table presents the classification of these restructuring costs in the Company's statements of operations:
Three Months Ended June Six Months Ended June
(In thousands) 2026 2025 2026 2025
Cost of goods sold $ (13,178) $ 515  $ (10,350) $ 1,592 
Selling, general, and administrative expenses 409  2,804  511  5,049 
Total restructuring (gains) charges $ (12,769) $ 3,319  $ (9,839) $ 6,641 
The following table presents these restructuring costs by business segment:
Three Months Ended June Six Months Ended June
(In thousands)
2026 2025 2026 2025
Wrangler $ 250  $ 518  $ 418  $ 1,456 
Helly Hansen 321  —  321  — 
Corporate and other (13,340) 2,801  (10,578) 5,185 
Total restructuring (gains) charges $ (12,769) $ 3,319  $ (9,839) $ 6,641 
The following table presents activity in the restructuring accrual for the six-month period ended June 2026:
(In thousands)
Accrual at December 2025 $ 8,516 
Charges(1)
3,600 
Cash payments (6,008)
Adjustments to accruals (1,340)
Currency translation 5 
Balance, June 2026 $ 4,773 
(1) For the six months ended June 2026, in addition to the $3.6 million in charges recorded to the restructuring accrual, the Company recorded approximately $1.9 million of non-cash and other charges related to the closure of a manufacturing facility and streamlining and transferring select production within our internal manufacturing network offset by a gain related to the sale of the manufacturing facility of $15.4 million.
All of the $4.8 million restructuring accrual reported in the Company's balance sheet at June 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."