Latest news with #ScottBaxter
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)
Hypebeast
4 days ago
- Business
- Hypebeast
Helly Hansen Acquired by Lee and Wrangler Parent for $900 Million USD
On Monday morning,Kontoor Brands, parent to heritage denim labelsLeeandWrangler, finalized its previously announced deal to acquire performance gear brandHelly Hansen, closing at $900 million USD. 'Today marks an exciting step forward for Kontoor as we expand our portfolio of iconic consumer brands,' said CEO of Kontoor Brands Scott Baxter. '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,' he continued. '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 that we will create significant long-term value for our shareholders.' The move arrives as major players in the apparel sector look to get in on the growth of the outdoor and performance gear market, a development particularly relevant to Kontoor, whose bread and butter has been its small group of heritage lifestyle labels. In addition to diversifying its offerings, Kontoor's global presence may also benefit from the move, given that Helly Hansen enjoys much of its popularity in international regions like Japan, where Lee and Wrangler also share relevance. Founded in 1877, the Norwegian label was acquired from its previous owner, Canadian Tire Corporation. According to Kontoor, Helly Hansen is expected to boost the company's revenue, adjusted earnings per share, and cash flow with immediate effects in fiscal 2025. Per a report fromEcotextile News, the brand is anticipated generate upwards of $680 million USD in revenue and $80 million USD in adjusted EBITDA for the full year 2025. Stay tuned to Hypebeast for the latest fashion industry news.
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.
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.
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.
