Wrangler brand shows robust growth and market share gains, but Lee's revenues are falling, with 2026 expected to be a transition year. Helly Hansen's integration has boosted revenue but delivered minimal profitability, with segment margins at just 1.5% versus Wrangler's 23%. The company maintains robust cash flow, a 3.43% dividend yield, and a clear plan positioning for margin and earnings growth.
Cyborg Score Rationale
Tariff risks loom large with management projecting a $135 million impact in 2026. Recent revenue gains are offset by declining profitability and cash flow post-Helly Hansen acquisition. Strong dividend yield and cash generation partially offset near-term integration challenges.
Top Insights
Q3 2025 revenue grew 27.3% YoY to $853.2M, with Q4 expected to see 39.9% YoY growth per market expectations
Helly Hansen acquisition expands portfolio but margins lag core Wrangler business (1.5% vs 23%)
Tariff headwinds of $135M projected for 2026, partially offset by sourcing optimization
Dividend yield of 3.43% with recent 2% increase signals management confidence despite near-term challenges
Named Competitors
Premium Denim & Casual Apparel — Global denim leader with strong heritage and e-commerce presence
Diversified Apparel Portfolio — Multi-brand conglomerate including The North Face, Vans, and Timberland
Fashion & Lifestyle Apparel — Owner of Tommy Bahama and Lilly Pulitzer brands
Outdoor & Workwear — Premium outdoor and maritime workwear brand
Recent Developments
(February 2025) Acquired iconic outdoor and workwear brand Helly Hansen for portfolio expansion
(October 2025) Appointed Børre Hegbom as Senior VP, Global Head of Helly Hansen to drive strategic execution
(October 2025) Declared 2% dividend increase, raising quarterly payment to $0.53 per share
(March 2026) Q4 2025 earnings expected March 3, with Q3 results showing strong revenue beat
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