Kontoor’s plans to sell Lee ‘at an advanced stage’
Fashion group Kontoor has announced plans to sell its Lee business - which will leave it with Wrangler and outdoor-focused Helly Hanson and Musto - to “sharpen strategic focus on its largest growth assets”.
Scott Baxter, CEO of Kontoor, said: “Wrangler drove another quarter of broad-based growth and market share gains, and Helly Hansen delivered better-than-expected revenue and profitability.
“Our decision to divest Lee enables sharper focus on the opportunities with greatest potential to maximize shareholder returns as we align the Kontoor brand portfolio to a higher growth profile.”
Chief financial officer Joe Alkire added: “Our planned divestiture of the Lee business is in an advanced state and has attracted interest from multiple parties. We are confident in our ability to successfully complete a transaction this year, resulting in significantly more capital allocation optionality and accelerated growth as we drive enhanced shareholder returns into 2027 and beyond.”
Revenue from continuing operations (excluding Lee) was $613 million for the first quarter, an increase of 45% compared to the year before.
Wrangler brand global revenue was $436 million and increased 4% compared to prior year. Helly Hansen global revenue was $176 million. Sport and Workwear revenue was $120 million and $45 million, respectively. Musto brand revenue was $11 million.
Image: Lee
