株探米国株
エドガーで原本を確認する
0001760965false00017609652026-08-052026-08-05


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): August 5, 2026
KONTOOR BRANDS, INC.

(Exact name of registrant as specified in charter)
North Carolina 001-38854 83-2680248
(State or other jurisdiction
of incorporation)		 (Commission file number) (I.R.S. employer
identification number)
400 N. Elm Street
Greensboro, North Carolina 27401
(Address of principal executive offices)
(336) 332-3400
(Registrant’s telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol(s) Name of Each Exchange on which Registered
Common Stock, no par value KTB New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 7.01. Regulation FD Disclosure.
As previously disclosed, Kontoor Brands, Inc. (the “Company”) entered into a Stock Purchase Agreement (the “Purchase Agreement”), on May 20, 2026, with ABG-Storm LLC, a Delaware limited liability company, an affiliate of Authentic Brands Group (“Buyer”) and The H.D. Lee Company, Inc., a Delaware corporation, a wholly-owned subsidiary of the Company (“Lee”). Pursuant to the terms and subject to the conditions set forth in the Purchase Agreement, the Company has agreed to sell to Buyer all of the outstanding shares of capital stock of Lee at closing.
The Company commenced a sale process of its global Lee business during the first quarter of 2026, with an expectation of completing a transaction during fiscal 2026. During the first quarter of 2026, the Company determined that the Lee business met held-for-sale criteria. Accordingly, the assets and liabilities of the Lee business were reported as held-for-sale in the balance sheets in the Company's first quarter of 2026 Form 10-Q. Additionally, the planned sale represents a strategic shift that will have a major effect on the Company's operations and financial results. Accordingly, the Company reported the Lee business as discontinued operations in its statements of operations and statements of cash flows in the first quarter of 2026 Form 10-Q.
In order to assist investors in understanding the impact of the sale of the Lee business on the Company’s financial results, the Company is furnishing Exhibit 99.1 to this Current Report which provides unaudited financial information for and as of, as applicable, each of the three months ended March 29, 2025, June 28, 2025 and September 27, 2025, and as of and for the three months and twelve months ended January 3, 2026, recast to present the Lee business on a discontinued operations basis. The financial information contained in this Current Report, including Exhibit 99.1 attached hereto, should be read in conjunction with the separate historical financial statements and accompanying notes contained in each of the Company’s Quarterly Reports on Form 10-Q for the interim periods included herein and Annual Report on Form 10-K for the fiscal year ended January 3, 2026.

The information in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Forward-Looking Statements

Certain statements included in this current report 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, including statements herein regarding the timing of the sale of the Lee business. 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, such things as, whether and when the required regulatory approvals for the proposed sale of the Lee business will be obtained, whether and when the closing conditions will be satisfied and whether and when the proposed sale of the Lee business will close, if at all; our ability to execute, and realize benefits, successfully, or at all, from, the proposed sale of the Lee business; macroeconomic conditions, including inconsistent consumer demand despite recent declines in interest rates, fluctuating foreign currency exchange rates, moderating inflation and global supply chain issues, as well as the ongoing impact of tariffs and uncertainty regarding the outcome of trade negotiations, import/export regulations and tariff policies, 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); our ability to deleverage on the anticipated time frame or at all; the level of consumer demand for apparel; reliance on a small number of large customers; potential difficulty in integrating Helly Hansen and/or in achieving the expected growth, cost savings and/or synergies from the acquisition; potential risks and uncertainties in completing the sale of the Lee business, if at all, and potential risks in segregating and disposing of the Lee business and the Company’s ability to mitigate any stranded costs from the potential disposition; 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; 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; our ability to successfully utilize our share repurchase program; 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 Securities and Exchange Commission.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
Supplemental financial information
104 Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

    


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
KONTOOR BRANDS, INC.
Date: August 5, 2026 By: /s/ Joseph A. Alkire
Name: Joseph A. Alkire
Title: Executive Vice President, Chief Financial Officer and Global Head of Operations
 


EX-99.1 2 a2026q2ktberex991discopsfi.htm EX-99.1 Document

Exhibit 99.1
KONTOOR BRANDS, INC.
Supplemental Financial Information
(Unaudited)


As previously disclosed, Kontoor Brands, Inc. (the “Company”) entered into a Stock Purchase Agreement (the “Purchase Agreement”), on May 20, 2026, with ABG-Storm LLC, a Delaware limited liability company, an affiliate of Authentic Brands Group (“Buyer”) and The H.D. Lee Company, Inc., a Delaware corporation, a wholly-owned subsidiary of the Company (“Lee”). Pursuant to the terms and subject to the conditions set forth in the Purchase Agreement, the Company has agreed to sell to Buyer all of the outstanding shares of capital stock of Lee at closing.
During the Company's first quarter of fiscal 2026, the Company determined that the Lee business met held-for-sale and discontinued operations accounting criteria. Accordingly, the assets and liabilities of the Lee business were reported as held-for-sale in the balance sheets in the Company's first quarter Form 10-Q. Additionally, the Company reported the Lee business as discontinued operations in its statements of operations and statements of cash flows.
The unaudited supplemental financial information provided below presents the Company's condensed consolidated financial information for and as of, as applicable, each of the four quarters in fiscal 2025 and the full year of fiscal 2025, as recast to present the Lee business on a discontinued operations basis.
The unaudited supplemental financial information provided below should be read in conjunction with the Company's separate historical financial statements and accompanying notes contained in each of the Company’s Quarterly Reports on Form 10-Q for the interim periods included herein and Annual Report on Form 10-K for the fiscal year ended January 3, 2026.
Non-GAAP Financial Measures
This unaudited supplemental financial information refers to “adjusted” and “organic” amounts from 2025, which are further described in the sections below. All per share amounts are presented on a diluted basis. Amounts as presented herein may not recalculate due to the use of unrounded numbers.

Adjusted Amounts - This release refers to “adjusted” amounts. Adjustments during 2025 represent (i) restructuring and transformation costs related to business optimization activities associated with Project Jeanius, (ii) actions to streamline and transfer select production within our internal manufacturing network and, (iii) acquisition and integration-related costs associated with the Helly Hansen acquisition. Additional information regarding adjusted amounts is provided in notes to the supplemental financial information.

Organic Amounts - This release refers to “organic” amounts, which represent operating results excluding contributions from the Helly
Hansen® and Musto® brands acquired on May 31, 2025.

Reconciliations of these non-GAAP measures to the most comparable GAAP measures are presented in the supplemental financial information included in this exhibit that identifies and quantifies all reconciling adjustments and provides management's view of why this non-GAAP information is useful to investors. While management believes that these non-GAAP measures are useful in evaluating the business, this information should be viewed in addition to, and not as an alternate for, reported results under GAAP. The non-GAAP measures used by the Company in this release may be different from similarly titled measures used by other companies.





KONTOOR BRANDS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)

The following condensed consolidated statements of operations present the Company's unaudited financial information for each of the four quarters of fiscal 2025 and for the full year of fiscal 2025, as recast to present the Lee business on a discontinued operations basis.
Three Months Ended Twelve Months Ended
(Dollars and shares in thousands, except per share amounts) March 2025 June 2025 September 2025 December 2025 December 2025
Net revenues $ 423,001  $ 492,632  $ 666,472  $ 819,983  $ 2,402,088 
Costs and operating expenses
Cost of goods sold 230,267  263,451  399,974  436,869  1,330,561 
Selling, general and administrative expenses 161,365  172,233  229,084  281,507  844,189 
Total costs and operating expenses 391,632  435,684  629,058  718,376  2,174,750 
Operating income 31,369  56,948  37,414  101,607  227,338 
Interest expense (9,808) (13,485) (18,972) (19,897) (62,162)
Interest income 3,319  2,820  289  422  6,850 
Other (expense) income, net (10,293) 30,546  (3,049) (3,166) 14,038 
Income from continuing operations before income taxes 14,587  76,829  15,682  78,966  186,064 
Income taxes (4,338) (18,397) (1,310) (21,530) (45,575)
Income from equity method investment —  264  1,634  3,513  5,411 
Income from continuing operations 10,249  58,696  16,006  60,949  145,900 
Income from discontinued operations, net of tax 32,633  15,173  20,938  12,808  81,552 
Net income $ 42,882  $ 73,869  $ 36,944  $ 73,757  $ 227,452 
Earnings per common share - basic
Continuing operations $ 0.18  $ 1.06  $ 0.29  $ 1.10  $ 2.63 
Discontinued operations $ 0.59  $ 0.27  $ 0.37  $ 0.23  $ 1.47 
Total earnings per common share - basic $ 0.77  $ 1.33  $ 0.66  $ 1.33  $ 4.10 
Earnings per common share - diluted
Continuing operations $ 0.18  $ 1.05  $ 0.29  $ 1.08  $ 2.60 
Discontinued operations $ 0.58  $ 0.27  $ 0.37  $ 0.23  $ 1.45 
Total earnings per common share - diluted $ 0.76  $ 1.32  $ 0.66  $ 1.31  $ 4.05 
Weighted average shares outstanding
Basic 55,355  55,560  55,575  55,507  55,500 
Diluted 56,059  55,975  56,069  56,327  56,108 
Basis of presentation for all financial tables within this release: The supplemental financial information provided in the financial tables presents the Company's unaudited condensed consolidated financial information for and as of, as applicable, each of the four quarters in fiscal 2025 and the full year of fiscal 2025, as recast to present the Lee business on a discontinued operations basis.
The Company operates and reports using a 52/53-week fiscal year ending on the Saturday closest to December 31 each year. For presentation purposes herein, all references to periods ended March 2025, June 2025 and September 2025 correspond to the 13-week fiscal periods ended March 29, 2025, June 28, 2025 and September 27, 2025, respectively, and references to December 2025 correspond to the 14-week and 53-week fiscal periods ended January 3, 2026. References to March 2025, June 2025, September 2025 and December 2025 relate to the balance sheets as of March 29, 2025, June 28, 2025, September 27, 2025 and January 3, 2026, respectively.


KONTOOR BRANDS, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
The following condensed consolidated balance sheets present the Company's unaudited financial information for each of the four quarters of fiscal 2025, as recast to present the Lee business on a discontinued operations basis.
(In thousands) March 2025 June 2025 September 2025 December 2025
ASSETS
Current assets
Cash and cash equivalents $ 320,790  $ 85,914  $ 57,918  $ 77,215 
Accounts receivable, net 131,958  237,530  279,813  209,419 
Inventories 298,810  543,130  604,016  435,945 
Prepaid expenses and other current assets 57,371  93,446  95,149  102,056 
Current assets of discontinued operations 278,849  255,756  301,157  256,481 
Total current assets 1,087,778  1,215,776  1,338,053  1,081,116 
Property, plant and equipment, net 82,955  119,239  114,395  113,285 
Operating lease assets 18,931  124,163  118,618  110,330 
Intangible assets, net 6,791  447,058  449,698  445,584 
Goodwill 129,034  407,985  438,459  451,006 
Other assets 176,045  228,911  228,466  212,294 
Other assets of discontinued operations 174,145  174,773  175,082  169,057 
TOTAL ASSETS $ 1,675,679  $ 2,717,905  $ 2,862,771  $ 2,582,672 
LIABILITIES AND EQUITY
Current liabilities
Current portion of long-term debt $ —  $ —  $ —  $ 8,750 
Accounts payable 161,240  217,110  272,611  195,560 
Accrued and other current liabilities 112,481  197,366  244,184  237,864 
Operating lease liabilities, current 10,328  27,701  26,401  22,418 
Current liabilities of discontinued operations 107,091  116,196  159,091  129,035 
Total current liabilities 391,140  558,373  702,287  593,627 
Operating lease liabilities, noncurrent 10,464  98,945  96,440  95,422 
Other liabilities 77,484  161,059  158,059  164,431 
Long-term debt 735,640  1,366,510  1,342,117  1,134,579 
Other liabilities of discontinued operations 34,279  34,671  34,252  29,746 
Total liabilities 1,249,007  2,219,558  2,333,155  2,017,805 
Commitments and contingencies
Total equity 426,672  498,347  529,616  564,867 
TOTAL LIABILITIES AND EQUITY $ 1,675,679  $ 2,717,905  $ 2,862,771  $ 2,582,672 



KONTOOR BRANDS, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)

The following condensed consolidated statements of cash flows present the Company's unaudited financial information for each of the four quarters of fiscal 2025, on a year-to-date basis, as recast to present the Lee business on a discontinued operations basis.

Year-to-Date
(In thousands) March 2025 June 2025 September 2025 December 2025
OPERATING ACTIVITIES
Net income $ 42,882  $ 116,751  $ 153,695  $ 227,452 
Income from discontinued operations, net of tax 32,633  47,806  68,743  81,552 
Income from continuing operations, net of tax 10,249  68,945  84,952  145,900 
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization 7,349  16,523  29,994  42,688 
Stock-based compensation 14,041  19,929  28,421  37,393 
Other, including working capital changes 22,388  (36,608) (33,584) 135,913 
Cash provided by operating activities - continuing operations 54,027  68,789  109,783  361,894 
Cash provided by operating activities - discontinued operations 23,598  34,519  57,671  93,915 
Cash provided by operating activities 77,625  103,308  167,454  455,809 
INVESTING ACTIVITIES
Property, plant and equipment expenditures (2,318) (5,309) (12,831) (18,307)
Capitalized computer software (1,337) (2,165) (3,008) (3,820)
Business acquisition, net of cash received —  (870,058) (899,372) (901,223)
Proceeds from the settlement of foreign exchange contracts to hedge business acquisition —  24,115  24,115  24,115 
Proceeds from sales of assets —  2  4,028  5,913 
Other 508  —  584  584 
Cash used by investing activities - continuing operations (3,147) (853,415) (886,484) (892,738)
Cash used by investing activities - discontinued operations (1,615) (2,009) (3,436) (6,026)
Cash used by investing activities (4,762) (855,424) (889,920) (898,764)
FINANCING ACTIVITIES
Borrowings under revolving credit facility —  —  —  50,000 
Repayments under revolving credit facility —  —  —  (50,000)
Proceeds from issuance of long-term debt —  1,000,000  1,000,000  1,000,000 
Payment of debt issuance costs —  (7,433) (7,433) (7,433)
Repayments of term loan (5,000) (370,000) (395,000) (595,000)
Repurchases of Common Stock —  —  —  (25,000)
Dividends paid (28,824) (57,717) (86,618) (116,085)
Shares withheld for taxes, net of proceeds from issuance of Common Stock (4,052) (8,555) (9,092) (9,683)
Cash (used) provided by financing activities (37,876) 556,295  501,857  246,799 
Effect of foreign currency rate changes on cash and cash equivalents (12,343) (30,763) (31,029) (29,468)
Net change in cash and cash equivalents 22,644  (226,584) (251,638) (225,624)
Cash and cash equivalents – beginning of period 334,066  334,066  334,066  334,066 
Cash and cash equivalents – end of period $ 356,710  $ 107,482  $ 82,428  $ 108,442 



KONTOOR BRANDS, INC.
Supplemental Financial Information
Reconciliation of Adjusted Financial Measures (Non-GAAP)
(Unaudited)
Three Months Ended Twelve Months Ended
(Dollars in thousands, except per share amounts) March 2025 June 2025 September 2025 December 2025 December 2025
Net revenues - as reported under GAAP $ 423,001  $ 492,632  $ 666,472  $ 819,983  $ 2,402,088 
Contribution from Helly Hansen (a)
—  29,232  192,650  253,617  475,485 
Organic net revenues
 $ 423,001  $ 463,400  $ 473,822  $ 566,366  $ 1,926,603 
Cost of goods sold - as reported under GAAP $ 230,267  $ 263,451  $ 399,974  $ 436,869  $ 1,330,561 
Restructuring and transformation costs (b)
(1,348) (893) (38,455) (5,645) (46,341)
Adjusted cost of goods sold 228,919  262,558  361,519  431,224  1,284,220 
Contribution from Helly Hansen (a)
—  14,111  108,526  121,142  243,779 
Adjusted organic cost of goods sold
 $ 228,919  $ 248,447  $ 252,993  $ 310,082  $ 1,040,441 
Gross margin - as reported under GAAP $ 192,734  $ 229,181  $ 266,498  $ 383,114  $ 1,071,527 
Restructuring and transformation costs (b)
1,348  893  38,455  5,645  46,341 
Adjusted gross margin 194,082  230,074  304,953  388,759  1,117,868 
Contribution from Helly Hansen (a)
—  15,121  84,124  132,475  231,706 
Adjusted organic gross margin $ 194,082  $ 214,953  $ 220,829  $ 256,284  $ 886,162 
Selling, general and administrative expenses - as reported under GAAP $ 161,365  $ 172,233  $ 229,084  $ 281,507  $ 844,189 
Restructuring and transformation costs (b)
(11,156) (6,503) (7,558) (9,041) (34,258)
Acquisition and integration-related costs (c)
(10,326) (14,040) (11,998) (14,470) (50,834)
Adjusted selling, general and administrative expenses 139,883  151,690  209,528  257,996  759,097 
Contribution from Helly Hansen (a)
—  20,430  73,767  92,403  186,600 
Adjusted organic selling, general and administrative expenses
 $ 139,883  $ 131,260  $ 135,761  $ 165,593  $ 572,497 
Other (expense) income, net - as reported under GAAP $ (10,293) $ 30,546  $ (3,049) $ (3,166) $ 14,038 
Acquisition and integration-related costs (c)
8,865  (32,980) —  —  (24,116)
Adjusted other expense, net $ (1,428) $ (2,434) $ (3,049) $ (3,166) $ (10,078)
Income Taxes as reported under GAAP $ (4,338) $ (18,397) $ (1,310) $ (21,530) $ (45,575)
Tax impact of Restructuring and transformation costs, and Acquisition and integration-related costs (b) (c)
(7,338) 5,336  (14,031) (5,339) (21,300)
Adjusted Income Taxes, net $ (11,676) $ (13,061) $ (15,341) $ (26,869) $ (66,875)
Diluted earnings per share from continuing operations - as reported under GAAP $ 0.18  $ 1.05  $ 0.29  $ 1.08  $ 2.60 
Impact to diluted earnings per share of Restructuring and transformation costs, and Acquisition and integration-related costs (b) (c)
0.44  (0.11) 0.78  0.42  1.54 
Adjusted diluted earnings per share from continuing operations $ 0.62  $ 0.94  $ 1.07  $ 1.50  $ 4.14 
Contribution from Helly Hansen (a)
—  (0.12) 0.03  0.44  0.35 
Adjusted organic diluted earnings per share from continuing operations $ 0.62  $ 1.06  $ 1.04  $ 1.06  $ 3.79 
Adjusted diluted earnings per share from continuing operations $ 0.62  $ 0.94  $ 1.07  $ 1.50  $ 4.14 
Adjusted diluted earnings per share from discontinued operations 0.58  0.27  0.37  0.23  1.45 
Adjusted diluted earnings per share $ 1.20  $ 1.21  $ 1.44  $ 1.73  $ 5.59 


KONTOOR BRANDS, INC.
Supplemental Financial Information
Reconciliation of Adjusted Financial Measures (Non-GAAP)
(Unaudited)
Net income from continuing operations - as reported under GAAP $ 10,249  $ 58,696  $ 16,006  $ 60,949  $ 145,900 
Income taxes 4,338  18,397  1,310  21,530  45,575 
Interest expense 9,808  13,485  18,972  19,897  62,162 
Interest income (3,319) (2,820) (289) (422) (6,850)
EBIT from continuing operations $ 21,076  $ 87,758  $ 35,999  $ 101,954  $ 246,787 
Depreciation and amortization 7,349  9,174  13,471  12,694  42,688 
EBITDA from continuing operations $ 28,425  $ 96,932  $ 49,470  $ 114,648  $ 289,475 
Restructuring and transformation costs (b)
12,504  7,396  46,013  14,686  80,599 
Acquisition and integration-related costs (c)
19,191  (18,940) 11,998  14,470  26,718 
Adjusted EBITDA from continuing operations $ 60,120  $ 85,388  $ 107,481  $ 143,804  $ 396,792 
As a percentage of total net revenues 14.2  % 17.3  % 16.1  % 17.5  % 16.5  %
Adjusted EBITDA from discontinued operations 43,511  21,821  26,808  19,706  111,846 
Adjusted EBITDA $ 103,631  $ 107,209  $ 134,289  $ 163,510  $ 508,638 
Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis, on an adjusted basis and on an adjusted organic basis, which excludes the operating results from the Helly Hansen acquisition. EBIT, EBITDA and adjusted presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers..
(a) Contribution from Helly Hansen represents the adjusted operating results from the Helly Hansen® and Musto® brands acquired on May 31, 2025.
(b) See Note 1 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document.
(c) See Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures” at the end of this document.


KONTOOR BRANDS, INC.
Supplemental Financial Information
Summarized Discontinued Operations Financial Information
(Unaudited)
The following table presents the unaudited financial information for the Lee segment for each of the four quarters of fiscal 2025 and for the full year of fiscal 2025, as recast to present the Lee business on a discontinued operations basis.
Three Months Ended Twelve Months Ended
(In thousands) March 2025 June 2025 September 2025 December 2025 December 2025
Net revenues $ 199,900  $ 165,627  $ 186,743  $ 198,098  $ 750,368 
Cost of goods sold 96,998  89,971  101,080  110,457  398,506 
Selling, general and administrative expenses 60,972  54,067  59,225  68,128  242,392 
Interest income 121  77  60  191  449 
Other (expense) income, net (707) (785) (860) (370) (2,722)
Income from discontinued operations before income taxes 41,344  20,881  25,638  19,334  107,197 
Income taxes (8,711) (5,708) (4,700) (6,526) (25,645)
Income from discontinued operations, net of tax 32,633  15,173  20,938  12,808  81,552 

Certain corporate overhead costs and segment costs previously allocated to Lee for segment reporting purposes did not qualify for classification within discontinued operations and have been reported in continuing operations for all periods presented in this Form 8-K. The table below presents these previously allocated costs for the three months ended March 2025, June 2025, September 2025 and December 2025, and the twelve months ended December 2025.
Three Months Ended Twelve Months Ended
(In thousands) March 2025 June 2025 September 2025 December 2025 December 2025
Cost of goods sold 1,010  556  1,273  1,879  4,718 
Selling, general and administrative expenses 7,766  7,831  7,594  9,898  33,089 
Total costs previously allocated to the Lee segment 8,776  8,387  8,867  11,777  37,807 

The table below reconciles Lee segment profit, as previously reported, to income from discontinued operations before income taxes for the Lee business for each of the four quarters of fiscal 2025 and for the full year of fiscal 2025.
Three Months Ended Twelve Months Ended
(In thousands) March 2025 June 2025 September 2025 December 2025 December 2025
Lee segment profit $ 32,447  $ 12,417  $ 16,711  $ 7,366  $ 68,941 
Total costs previously allocated to the Lee segment 8,776  8,387  8,867  11,777  37,807 
Interest income 121  77  60  191  449 
Income from discontinued operations before income taxes 41,344  20,881  25,638  19,334  107,197 

KONTOOR BRANDS, INC.
Supplemental Financial Information
Reconciliation of Adjusted and Adjusted Organic Financial Measures - Notes (Non-GAAP)
(Unaudited)
Notes to Supplemental Financial Information - Reconciliation of Adjusted and Adjusted Organic Financial Measures
Management uses non-GAAP financial measures internally in its budgeting and review process and, in some cases, as a factor in determining compensation. In addition, adjusted EBITDA is a key financial measure for the Company's shareholders and financial leaders, as the Company's debt financing agreements require the measurement of adjusted EBITDA, along with other measures, in connection with the Company's compliance with debt covenants. While management believes that these non-GAAP measures are useful in evaluating the business, this information should be considered supplemental in nature and should be viewed in addition to, and not as an alternate for, reported results under GAAP. In addition, these non-GAAP measures may be different from similarly titled measures used by other companies.
(1) During the three months ended March 2025, restructuring and transformation costs included $0.9 million related to streamlining and transferring select production within our internal manufacturing network and $0.4 million related to business optimization activities, recorded to "cost of goods sold", and $11.2 million related to business optimization activities, recorded to "selling, general and administrative expenses." Total restructuring and transformation costs resulted in a corresponding tax impact of $2.9 million for the three months ended March 2025.
During the three months ended June 2025, restructuring and transformation costs included $0.5 million related to streamlining and transferring select production within our internal manufacturing network and $0.4 million related to business optimization activities, recorded to "cost of goods sold", and $6.5 million related to business optimization activities, recorded to "selling, general and administrative expenses." Total restructuring and transformation costs resulted in a corresponding tax impact of $1.6 million for the three months ended June 2025.
During the three months ended September 2025, restructuring and transformation costs included $38.1 million related to the closure of a portion of our manufacturing facilities and $0.4 million related to streamlining and transferring select production within our internal manufacturing network, recorded to "cost of goods sold", and $7.6 million related to business optimization activities, recorded to "selling, general and administrative expenses." Total restructuring and transformation costs resulted in a corresponding tax impact of $11.1 million for the three months ended September 2025.
During the three months ended December 2025, restructuring and transformation costs included $5.7 million related to the closure of a portion of our manufacturing facilities, recorded to "cost of goods sold", and $9.0 million related to business optimization activities, recorded to "selling, general and administrative expenses." Total restructuring and transformation costs resulted in a corresponding tax impact of $2.7 million for the three months ended December 2025.
During the twelve months ended December 2025, restructuring and transformation costs included $43.8 million related to the closure of a portion of our manufacturing facilities, $1.8 million of charges related to streamlining and transferring select production within our internal manufacturing network and $0.8 million related to business optimization activities, recorded to "cost of goods sold", and $34.3 million related to business optimization activities, recorded to "selling, general and administrative expenses." Total restructuring and transformation costs resulted in a corresponding tax impact of $16.0 million for the twelve months ended December 2025.
(2) During the three months ended March 2025, acquisition and integration-related costs included $10.3 million of professional and other fees and $8.9 million of losses related to foreign currency exchange contracts to hedge the purchase price of the Helly Hansen acquisition. Acquisition-related costs resulted in a corresponding tax impact of $4.4 million for the three months ended March 2025.
During the three months ended June 2025, acquisition and integration-related benefits included $33.0 million of gains related to foreign currency exchange contracts to hedge the purchase price of the Helly Hansen acquisition, and $14.0 million of professional and other fees. Total acquisition and integration-related benefits resulted in a corresponding tax impact of $(6.9) million for the three months ended June 2025.
During the three months ended September 2025, acquisition and integration-related costs included $12.0 million of professional and other fees. Total acquisition and integration-related costs resulted in a corresponding tax impact of $2.9 million for the three months ended September 2025.
During the three months ended December 2025, acquisition and integration-related costs included $14.5 million of professional and other fees. Total acquisition and integration-related costs resulted in a corresponding tax impact of $2.7 million for the three months ended December 2025.
During the twelve months ended December 2025, acquisition and integration-related costs included $50.8 million of professional and other fees and $24.1 million of gains related to foreign currency exchange contracts to hedge the purchase price of the Helly Hansen acquisition. Total acquisition and integration-related costs resulted in a corresponding tax impact of $5.3 million for the twelve months ended December 2025.