Latest news with #KontoorBrands
Fibre2Fashion
3 days ago
- Business
- Fibre2Fashion
American giant Kontoor Brands acquires Helly Hansen to boost growth
Kontoor Brands, Inc. (NYSE: KTB) today announced that it has completed the previously announced acquisition of Helly Hansen, the global outdoor and workwear brand. 'Today marks an exciting step forward for Kontoor as we expand our portfolio of iconic consumer brands. The acquisition of Helly Hansen will increase our growth profile, drive greater category, channel and geographic diversification, and increase our penetration in the attractive outdoor and workwear markets,' said Scott Baxter, President, Chief Executive Officer and Chairman of Kontoor Brands . 'I want to thank the entire Helly Hansen team for their partnership as we have worked toward this exciting milestone. Together, I am more confident than ever we will create significant long-term value for our shareholders.' Kontoor Brands has finalised its acquisition of Helly Hansen, strengthening its position in the outdoor and workwear markets. CEO Scott Baxter highlighted the deal's role in boosting growth, diversification, and global reach. The acquisition is expected to be immediately accretive to revenue, adjusted earnings per share, and cash flow in fiscal 2025, in line with the outlook shared on May 6, 2025. Helly Hansen is expected to be immediately accretive to the Company's revenue, adjusted earnings per share and cash flow in fiscal 2025, consistent with the Company's outlook provided on May 6, 2025. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (RM)
Global News
4 days ago
- Automotive
- Global News
Canadian Tire sells Helly Hansen to U.S. company for $1.3B
Canadian Tire has sold its sportswear brand Helly Hansen to an American company, the Canadian retailer announced on Monday. In a statement released Monday, Canadian Tire said 'it has successfully closed the previously-announced sale of the Helly Hansen business to Kontoor Brands, Inc.' The retailer founded in 1922 announced earlier in the year that it was selling sportswear business Helly Hansen to Kontoor Brands. The almost $1.3-billion deal with the U.S. owner of clothing labels Wrangler, Lee and Rock & Republic boosted Canadian Tire's balance sheet with the kind of cash it would need for a Bay deal. 1:32 Hudson's Bay to sell its brands to Canadian Tire in $30M deal Canadian Tire CEO Greg Hicks said back in February that customers will still be able to buy Helly Hansen products off their shelves. Story continues below advertisement 'As we shift from brand owner to brand customer, we expect Helly Hansen's world-class products to remain on our shelves and on the shopping lists of our customers. We are excited to see where Kontoor takes the brand next,' said Hicks. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy The company said it was selling the brand to focus on its Canadian retail business. 'As our strategy becomes more singularly focused on great Canadian retail, it is time to pass this iconic brand into global hands,' Hicks said. He said the money made from this sale would go towards 'a combination of debt reduction, share repurchases, as well investments to drive customer experience and growth in its core Canadian retail business.' — with files from Canadian Press
Business Wire
4 days ago
- Business
- Business Wire
Kontoor Brands Completes Acquisition of Helly Hansen ®
GREENSBORO, N.C.--(BUSINESS WIRE)--Kontoor Brands, Inc. (NYSE: KTB) today announced that it has completed the previously announced acquisition of Helly Hansen, the global outdoor and workwear brand. 'Today marks an exciting step forward for Kontoor as we expand our portfolio of iconic consumer brands. The acquisition of Helly Hansen will increase our growth profile, drive greater category, channel and geographic diversification, and increase our penetration in the attractive outdoor and workwear markets,' said Scott Baxter, President, Chief Executive Officer and Chairman of Kontoor Brands. 'I want to thank the entire Helly Hansen team for their partnership as we have worked toward this exciting milestone. Together, I am more confident than ever we will create significant long-term value for our shareholders.' Helly Hansen is expected to be immediately accretive to the Company's revenue, adjusted earnings per share and cash flow in fiscal 2025, consistent with the Company's outlook provided on May 6, 2025. About Kontoor Brands Kontoor Brands, Inc. (NYSE: KTB) is a portfolio of three of the world's most iconic lifestyle, outdoor and workwear brands: Wrangler ®, Lee ® and Helly Hansen ®. Kontoor Brands is a purpose-led organization focused on leveraging its global platform, strategic sourcing model and best-in-class supply chain to drive brand growth and deliver long-term value for its stakeholders. For more information about Kontoor Brands, please visit Forward-Looking Statements Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as 'will,' 'anticipate,' 'estimate,' 'expect,' 'should,' 'may' and other words and terms of similar meaning or use of future dates. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. We do not intend to update any of these forward-looking statements or publicly announce the results of any revisions to these forward-looking statements, other than as required under the U.S. federal securities laws. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this release include, but are not limited to: macroeconomic conditions, including elevated interest rates, moderating inflation, fluctuating foreign currency exchange rates, global supply chain issues and inconsistent consumer demand, continue to adversely impact global economic conditions and have had, and may continue to have, a negative impact on the Company's business, results of operations, financial condition and cash flows (including future uncertain impacts); the level of consumer demand for apparel; reliance on a small number of large customers; potential difficulty in successfully integrating Helly Hansen and/or in achieving the expected growth, cost savings and/or synergies from the acquisition; supply chain and shipping disruptions, which could continue to result in shipping delays, an increase in transportation costs and increased product costs or lost sales; intense industry competition; the ability to accurately forecast demand for products; the Company's ability to gauge consumer preferences and product trends, and to respond to constantly changing markets; the Company's ability to maintain the images of its brands; changes to trade policy, including tariffs, reciprocal tariffs and import/export regulations; disruption and volatility in the global capital and credit markets and its impact on the Company's ability to obtain short-term or long-term financing on favorable terms; the Company maintaining satisfactory credit ratings; restrictions on the Company's business relating to its debt obligations; increasing pressure on margins; e-commerce operations through the Company's direct-to-consumer business; the financial difficulty experienced by the retail industry; possible goodwill and other asset impairment; the ability to implement the Company's business strategy; the stability of manufacturing facilities and foreign suppliers; fluctuations in wage rates and the price, availability and quality of raw materials and contracted products, including as a result of tariffs and reciprocal tariffs; the reliance on a limited number of suppliers for raw material sourcing and the ability to obtain raw materials on a timely basis or in sufficient quantity or quality; disruption to distribution systems; seasonality; unseasonal or severe weather conditions; potential challenges with the Company's implementation of Project Jeanius; the Company's and its vendors' ability to maintain the strength and security of information technology systems; the risk that facilities and systems and those of third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss or maintain operational performance; ability to properly collect, use, manage and secure consumer and employee data; legal, regulatory, political and economic risks; the impact of climate change and related legislative and regulatory responses; stakeholder response to sustainability issues, including those related to climate change; compliance with anti-bribery, anti-corruption and anti-money laundering laws by the Company and third-party suppliers and manufacturers; changes in tax laws and liabilities; the costs of compliance with or the violation of national, state and local laws and regulations for environmental, consumer protection, employment, privacy, safety and other matters; continuity of members of management; labor relations; the ability to protect trademarks and other intellectual property rights; the ability of the Company's licensees to generate expected sales and maintain the value of the Company's brands; volatility in the price and trading volume of the Company's common stock; anti-takeover provisions in the Company's organizational documents; and fluctuations in the amount and frequency of our share repurchases. Many of the foregoing risks and uncertainties will be exacerbated by any worsening of the global business and economic environment. More information on potential factors that could affect the Company's financial results are described in detail in the Company's most recent Annual Report on Form 10-K and in other reports and statements that the Company files with the SEC.
Yahoo
6 days ago
- Business
- Yahoo
Kontoor Brands (NYSE:KTB) shareholders have earned a 32% CAGR over the last five years
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Kontoor Brands, Inc. (NYSE:KTB) which saw its share price drive 242% higher over five years. And in the last month, the share price has gained 14%. But this could be related to good market conditions -- stocks in its market are up 6.5% in the last month. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During five years of share price growth, Kontoor Brands achieved compound earnings per share (EPS) growth of 24% per year. This EPS growth is reasonably close to the 28% average annual increase in the share price. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. Rather, the share price has approximately tracked EPS growth. You can see below how EPS has changed over time (discover the exact values by clicking on the image). This free interactive report on Kontoor Brands' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Kontoor Brands the TSR over the last 5 years was 303%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. While the broader market gained around 14% in the last year, Kontoor Brands shareholders lost 1.6% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 32% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Kontoor Brands has 2 warning signs we think you should be aware of. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fashion Network
15-05-2025
- Business
- Fashion Network
Helly Hansen to grow in the U.S. as Kontoor targets expansion and margin gains
With Kontoor Brands finalizing its acquisition of Helly Hansen, the American apparel group—owner of Lee and Wrangler—is integrating the Norwegian outdoor brand into its global portfolio and laying out plans for expansion and profitability. Kontoor expects Helly Hansen to improve its margins by tapping into the group's operational infrastructure. During Kontoor's first-quarter earnings call, CEO Scott Baxter outlined four strategic priorities for Helly Hansen's future. 'First, we're accelerating Helly Hansen's growth. The opportunities are significant. The U.S. is the largest outdoor apparel and footwear market in the world. While it's currently the brand's fastest-growing market, its penetration remains well below that of competitors. By combining wholesale and retail expansion, strong digital growth, and demand-generation investments, we see a clear path to double-digit growth in our home market,' Baxter said. 'Beyond the U.S., we also see major opportunities in direct-to-consumer sales, China, workwear, and category expansion.' Kontoor also aims to enter high-potential geographic markets while doubling Helly Hansen's operating margin to approximately 15%. Using its own global structure, the company expects to lower Helly Hansen's freight costs by 10% to 20%. 'We will leverage our global operating model, supply chain, and technology platforms. This will allow both organizations to benefit from meaningful scale advantages while enhancing operational efficiency, decision-making, and investment capabilities to support growth initiatives,' said Baxter. In the near term, Kontoor plans to boost profit and improve working capital to reduce its net debt-to-equity ratio by 50% over the next 12 months. The company's fourth strategic focus is integrating Helly Hansen's talent and brand identity. 'We remain impressed with their organization. There's talent at every level, along with humility, drive, and a desire to do things right. These are the same qualities we value at Kontoor,' Baxter said, adding that Kontoor is the first owner of the brand in two decades with roots in the textile industry. Kontoor expects Helly Hansen to generate $425 million in revenue during its first fiscal year under new ownership, with stronger performance forecast in the years ahead. However, the group also faces challenges related to U.S. import tariffs. 'Helly Hansen sources all of its U.S. products from Southeast Asia, including China, Vietnam, Bangladesh, and Cambodia,' said CFO Joe Alkire. 'Remember, the brand generates about 75% of its global revenue outside the United States. However, if proposed tariff rates apply across all imports, the group could face an estimated $50 million hit to its 2025 operating profit, with Helly Hansen contributing roughly $15 million to that total.' Despite this challenge, Kontoor does not expect tariffs to derail Helly Hansen's long-term strategy, as most players in the outdoor apparel sector also rely on Southeast Asian manufacturing.
