Kontoor Brands Q2 2025: Unpacking Contradictions in Wrangler Demand, Lee's Growth, and Tariff Impacts

Wrangler inventory and demand, Lee's performance and strategy, Helly Hansen revenue contribution, tariff impact and mitigation, and Wrangler's growth and market share are the key contradictions discussed in Kontoor Brands' latest 2025Q2 earnings call.



Strong Revenue Performance:
- Kontoor Brands reported an 8% increase in global revenue for Q2 2025, with Wrangler experiencing a 7% increase and Lee a 6% decrease.
- The growth was driven by significant opportunities from an expanded brand portfolio, consumer diversification, and geographic expansion, particularly in digital channels.

Helly Hansen Integration and Growth:
- Helly Hansen contributed $29 million in revenue in June, exceeding the forecasted $20 million to $25 million.
- The integration is progressing well, with commercial teams performing at a high level, driving increased orders and a strong product pipeline.

Wrangler's Market Share Gains:
- Wrangler's revenue increased by 7%, with mid-single-digit growth in Western and a 16% increase in digital sales.
- The brand's market share grew by 70 basis points, driven by strong product development, talent investments, and brand activations like those at the ACM Awards.

Lee Brand Turnaround:
- Lee's U.S. revenue decreased by 5%, with digital sales up 9%.
- The turnaround is on track, with a new creative vision and brand equity campaign launching in September, aimed at improving brand equity and revenue.