Kontoor Brands重列2025財年業績 Lee列終止經營 全年經調整每股盈利4.14美元

EX-99.1
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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 EndedTwelve Months Ended
(Dollars and shares in thousands, except per share amounts)March 2025June 2025September 2025December 2025December 2025
Net revenues $423,001 $492,632 $666,472 $819,983 $2,402,088 
Costs and operating expenses
Cost of goods sold230,267 263,451 399,974 436,869 1,330,561 
Selling, general and administrative expenses161,365 172,233 229,084 281,507 844,189 
Total costs and operating expenses391,632 435,684 629,058 718,376 2,174,750 
Operating income31,369 56,948 37,414 101,607 227,338 
Interest expense(9,808)(13,485)(18,972)(19,897)(62,162)
Interest income3,319 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 taxes14,587 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 operations10,249 58,696 16,006 60,949 145,900 
Income from discontinued operations, net of tax32,633 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
Basic55,355 55,560 55,575 55,507 55,500 
Diluted56,059 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 2025June 2025September 2025December 2025
ASSETS
Current assets
Cash and cash equivalents$320,790 $85,914 $57,918 $77,215 
Accounts receivable, net131,958 237,530 279,813 209,419 
Inventories298,810 543,130 604,016 435,945 
Prepaid expenses and other current assets57,371 93,446 95,149 102,056 
Current assets of discontinued operations278,849 255,756 301,157 256,481 
Total current assets1,087,778 1,215,776 1,338,053 1,081,116 
Property, plant and equipment, net82,955 119,239 114,395 113,285 
Operating lease assets18,931 124,163 118,618 110,330 
Intangible assets, net6,791 447,058 449,698 445,584 
Goodwill129,034 407,985 438,459 451,006 

Other assets176,045 228,911 228,466 212,294 
Other assets of discontinued operations174,145 174,773 175,082 169,057 
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 payable161,240 217,110 272,611 195,560 
Accrued and other current liabilities112,481 197,366 244,184 237,864 
Operating lease liabilities, current10,328 27,701 26,401 22,418 
Current liabilities of discontinued operations107,091 116,196 159,091 129,035 
Total current liabilities391,140 558,373 702,287 593,627 
Operating lease liabilities, noncurrent10,464 98,945 96,440 95,422 

Other liabilities77,484 161,059 158,059 164,431 
Long-term debt735,640 1,366,510 1,342,117 1,134,579 
Other liabilities of discontinued operations34,279 34,671 34,252 29,746 
Total liabilities1,249,007 2,219,558 2,333,155 2,017,805 
Commitments and contingencies
Total equity426,672 498,347 529,616 564,867 
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 2025June 2025September 2025December 2025
OPERATING ACTIVITIES
Net income$42,882 $116,751 $153,695 $227,452 
Income from discontinued operations, net of tax32,633 47,806 68,743 81,552 
Income from continuing operations, net of tax10,249 68,945 84,952 145,900 
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization7,349 16,523 29,994 42,688 
Stock-based compensation14,041 19,929 28,421 37,393 
Other, including working capital changes22,388 (36,608)(33,584)135,913 
Cash provided by operating activities - continuing operations54,027 68,789 109,783 361,894 
Cash provided by operating activities - discontinued operations23,598 34,519 57,671 93,915 
Cash provided by operating activities77,625 103,308 167,454 455,809 
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 
Other508 — 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 period334,066 334,066 334,066 334,066 
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 EndedTwelve Months Ended
(Dollars in thousands, except per share amounts)March 2025June 2025September 2025December 2025December 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 sold228,919 262,558 361,519 431,224 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 margin194,082 230,074 304,953 388,759 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 expenses139,883 151,690 209,528 257,996 759,097 
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 operations0.58 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 taxes4,338 18,397 1,310 21,530 45,575 
Interest expense9,808 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 amortization7,349 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 revenues14.2 %17.3 %16.1 %17.5 %16.5 %
Adjusted EBITDA from discontinued operations43,511 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 EndedTwelve Months Ended
(In thousands)March 2025June 2025September 2025December 2025December 2025
Net revenues$199,900 $165,627 $186,743 $198,098 $750,368 
Cost of goods sold96,998 89,971 101,080 110,457 398,506 
Selling, general and administrative expenses60,972 54,067 59,225 68,128 242,392 
Interest income121 77 60 191 449 
Other (expense) income, net(707)(785)(860)(370)(2,722)
Income from discontinued operations before income taxes41,344 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 tax32,633 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 EndedTwelve Months Ended
(In thousands)March 2025June 2025September 2025December 2025December 2025

Cost of goods sold1,010 556 1,273 1,879 4,718 
Selling, general and administrative expenses7,766 7,831 7,594 9,898 33,089 

Total costs previously allocated to the Lee segment8,776 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 EndedTwelve Months Ended
(In thousands)March 2025June 2025September 2025December 2025December 2025
Lee segment profit$32,447 $12,417 $16,711 $7,366 $68,941 

Total costs previously allocated to the Lee segment8,776 8,387 8,867 11,777 37,807 
Interest income121 77 60 191 449 
Income from discontinued operations before income taxes41,344 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.