Kontoor Brands completes acquisition of Helly Hansen

GREENSBORO, N.C. – Kontoor Brands, Inc. (NYSE: KTB), the apparel company known for its Wrangler and Lee brands, announced today the completion of its acquisition of the outdoor and workwear brand Helly Hansen. This move is expected to diversify Kontoor’s portfolio and strengthen its presence in the outdoor and workwear markets. The company, which currently maintains a market capitalization of $3.8 billion, demonstrates strong financial health with a perfect Piotroski Score of 9, according to InvestingPro data.

The company’s CEO, Scott Baxter, expressed confidence that the integration of Helly Hansen will be beneficial to Kontoor’s growth and will create value for shareholders. The acquisition is anticipated to have an immediate positive impact on Kontoor’s revenue, adjusted earnings per share, and cash flow for the fiscal year 2025, aligning with the company’s financial outlook provided on May 6, 2025. The company’s current financial metrics support this optimism, with a healthy gross profit margin of 45.6% and strong return on equity of 56%.

Kontoor Brands is positioning itself as a purpose-led organization with a global platform and a strategic sourcing model designed to leverage its supply chain for brand growth and long-term stakeholder value.

The transaction is part of Kontoor’s broader strategy to expand its brand portfolio and enter new market segments. With Helly Hansen under its umbrella, Kontoor now boasts three iconic brands, aiming to tap into the lucrative outdoor apparel sector.

The press release also contained forward-looking statements regarding the expected benefits and growth resulting from the acquisition. However, it is important to note that these statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. For deeper insights into Kontoor’s valuation and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 10+ additional ProTips and detailed financial metrics that help evaluate the company’s potential.

This news is based on a press release statement from Kontoor Brands, Inc. Investors and the market will be watching closely to see how this acquisition influences Kontoor’s financial performance and market position in the coming years.

In other recent news, Kontoor Brands has reported first-quarter earnings that exceeded Wall Street expectations, with adjusted earnings per share (EPS) reaching $1.31, a 13% increase from the previous year. Despite this positive earnings performance, the company experienced a slight revenue decline to $622.9 million, falling short of the $626.3 million forecast. Kontoor Brands also announced the acquisition of Helly Hansen, which is expected to contribute approximately $425 million to full-year revenue. Barclays analyst Adrienne Yih upgraded the stock’s price target to $86, maintaining an Overweight rating, citing confidence in Kontoor Brands’ strategic initiatives and growth opportunities. The analyst also noted the company’s resilience in navigating tariff challenges without significant supply chain disruptions. Kontoor Brands projects full-year revenue between $3.060 billion and $3.090 billion, anticipating 17-19% growth, with adjusted EPS for the year expected to range from $5.40 to $5.50. The company has also reduced its inventory by 12% to $443 million, which is part of its broader strategy to optimize supply chain and operational efficiencies.

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