Kontoor Brands Q1 sales dip 1% amid wholesale weakness

Fashion Network

07-05-2025

Kontoor Brands announced on Tuesday sales decreased 1 percent to $623 million in the first quarter, on the back of declines in global wholesale.
The U.S. denim purveyor said Wrangler revenues rose 3 percent to $420 million, with Wrangler U.S. up 3 percent, driven by 14 percent growth in direct-to-consumer and 2 percent growth in wholesale. Wrangler international revenue was flat, driven by a 2 percent increase in wholesale offset by a 12 percent decrease in direct-to-consumer.
Meanwhile, Lee brand revenue was $200 million, a 9 percent decrease compared to the prior year. Lee U.S. revenue decreased 8 percent, driven by a 9 percent decrease in wholesale partially offset by a 3 percent increase in direct-to-consumer. Lee international revenue decreased 11 percent driven by a 15 percent decline in wholesale and a 1 percent increase in brick-and-mortar retail.
For its quarter ended March 29, operating income jumped 4 percent to $96 million at the Greensboro, North Carolina-based company.
'We continued to strengthen our brands, drive market share gains, and grow our presence across categories and channels of distribution. And, the strength of our gross margin drove strong underlying earnings growth, cash generation and further improvement in our returns on capital,' said Scott Baxter, president, chief executive officer and chairman of the board of directors.
'We have navigated significant disruption over the past five years and have built an organization and operating model rooted in resiliency. Project Jeanius is underway and later this month we expect to welcome Helly Hansen to the Kontoor family, further enhancing our ability to generate long-term value for our shareholders. I want to thank our colleagues around the globe for their continued perseverance and commitment to strong execution amidst an increasingly dynamic environment.'
Looking ahead, the company expects annual revenue for the full year to be in the range of $3.06 to $3.09 billion, representing growth of approximately 17 to 19 percent compared to the prior year.