Slides
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SEPTEMBER 2, 2026
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Safe harbor statement Certain statements included in this presentation and the accompanying Helly Hansen Investor Day presentation materials, and cert ain oral statements made at the Helly Hansen Investor Day, 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 us e words such as “will,” “anticipate,” “estimate,” “expect,” “should,” “may” and other words and terms of similar meaning or use of future dates. 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 cou ld 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 presentation include, but are not limited to: macroeconomic conditions, including uneven or weakening consumer demand, fluctuating foreign currency exchange rates, 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); 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 syne rgies 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 transpo rtation 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 an d 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 rel ating 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 indust ry; 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 w age 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 f or 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 th at 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 mainta in 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 rela ted 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; the costs of compliance with or the violation of national, state and loca l laws and regulations for environmental, consumer protection, employment, privacy, safety and other matters; continuity of members of management; labor relations; the ability to protect t rademarks 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 tr ading volume of the Company’s common stock; anti-takeover provisions in the Company’s organizational documents; market conditions, timing and ability to institute an appropriate Accel erated Share Repurchase program; and general fluctuations in the amount and frequency of our share repurchases. Many of the foregoing risks and uncertainties will be exacerbated by any worse ning 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 Compan y’s most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and in other reports and statements that the Company files with the SEC.
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Today's Agenda Joe Alkire | President & Chief Financial OfficerKONTOOR’S NEXT GROWTH HORIZON Børre Hegbom | Global Head of Helly HansenINTRODUCTION TO HELLY HANSEN Tor Jenssen | Chief Product & Merchandising Officer, Helly HansenWINNING IN TECHNICAL OUTDOOR BREAK Patrik Falkenby | Global Head of Helly Hansen WorkwearPOWERING WORKWEAR Mike Karapetian | Global Brand & Operations, FinanceHELLY HANSEN'S GROWTH MODEL Børre Hegbom | Global Head of Helly HansenSUPERCHARGING GROWTH Q&A Erinn Murphy | Global Head of Finance & Operations, Helly HansenLEADING WITH THE CONSUMER
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TEAM Scott Baxter Chairman & Chief Executive Officer Joe Alkire President & Chief Financial Officer Børre Hegbom Global Head of Helly Hansen Tor Jenssen Chief Product & Merchandising Officer, Helly Hansen Erinn Murphy Global Head of Finance & Operations at Helly Hansen Patrik Falkenby Global Head of Helly Hansen Workwear Mike Karapetian Global Brand & Operations, Finance at Kontoor Brands
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JOE PRESIDENT & CHIEF FINANCIAL OFFICER ALKIRE
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Delivered exceptional outcomes since May 2019 spin-off Kontoor Brands’ performance Note: 1. FY19 – FY25; 2. Cumulative returns, May 2019 – June 2026 YTD; 3. Total Shareholder Return, May 23, 2019 – August 24, 2026 See Appendix – Supplemental Financial Information for reconciliation of adjusted financial measures; 15% Average Annual Total Shareholder Return3 17% 29% Adj. Return on Invested Capital1 $1.8B Cumulative Free Cash Flow1 41% 47% Adj. Gross Margin1 12% 15% Adj. Operating Margin1 ~$1B+ Cumulative Shareholder Returns2
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WE HAVE EVOLVED THE KONTOOR PORTFOLIO AND CONTINUE TO STRENGTHEN THE BUSINESS
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Kontoor is accelerating its next horizon of profitable growth TIME TODAY STABILIZE & OPTIMIZE OPTIMIZE & INVEST DRIVE LONG-TERM ACCELERATION HORIZON 1 HORIZON 2 Mid-single-digit top-line growth Profit growth with cash flow optionality Dividend driven TSR % GROWTH ACCELERATION
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Guiding principles to fuel our success Winning culture Focus on large, addressable markets Power of a multi-brand platform Growth-oriented organization Disciplined capital stewardship Talent leadership and development Transparency, integrity, and trust
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Our iconic brands are woven together by a deep authority in the denim, outdoor, and workwear categories. We empower consumers to pursue their passions with confidence and authenticity through innovative design, exceptional products, and compelling performance. KONTOOR'S NORTH STAR
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We have a clear focus on three large, attractive categories Market Size (2025, $USD) OUTDOOR TAM SAM DENIM TAM CAGR (2025-2030) ~$100B ~$63B ~$68B ~$300B ~$85B ~$39B WORKWEAR ~5% ~4%~6% Global Outdoor & Performance Premium Outdoor Global Denim Men’s & Women’s value & core Global Workwear North American & European Workwear Source: Global Outdoor & Performance Markets, Euromonitor (as of June 2026); Workwear Market Research, July 2026; Global Men' s & Women's Jeans, Euromonitor (as of June 2026)
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Anchored by two iconic brands with distinct roles GROWTH ENGINE BALANCED GROWER OUTDOOR WORKWEAR DENIM
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Kontoor brings deep expertise and platform capabilities to drive profitable growth Multi-brand operating platform Winning culture & talent Enterprise technology capabilities Global supply chain expertise at scale Advantaged tax platform
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Win in PREMIUM OUTDOOR Power WORKWEAR Supercharge the U.S. Helly Hansen's 2030 growth strategy
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2030 growth plan $1.1B+ Revenue $500M+ Cumulative cash flow from operations Mid- Teens Operating Margin % Mid- High 50s Gross Margin %
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BØRRE GLOBAL HEAD OF HELLY HANSEN HEGBOM
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150 years of heritage From our home in Norway, Helly Hansen has been making professional grade gear to help people stay and feel alive for nearly 150 years
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20261938 1947 1949 1952 1964 1989 1973 1854 1889 1877 19661912 Few brands have such a long, storied history Source: Company websites
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OUR MISSION WE MAKE PROFESSIONAL GRADE GEAR TO HELP PEOPLE STAY ALIVE AND FEEL ALIVE
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1949 Helox 1970 LIFA® 1986 3-Layer 2004 Footwear 2018 LIFALOFT 20201924 Linox 1961 Fiber Pile 1984 Helly Tech® 1990 Prowool 2012 H2Flow Lifa Infinity & Lifa Infinity Pro 2024 HH Connect 1877 Debut of Helly Hansen's first waterproof jacket 2026 Njord 2027 Pro Vis H20 150 years of innovation
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BUILT FOR THE TOUGHEST CONDITIONS
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CU LTURE Passionate Open Honest Results - oriented
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Helly Hansen's business profile $675M FY25 revenue >2x revenue since 2016 25% direct-to-consumer ~1,300 Helly Hansen employees 1. Excludes stores operated by China JV & Musto Note: FY25 pro-forma revenue, excluding Musto; See Appendix – Supplemental Financial Information for reconciliation of adjusted financial measures 50+ countries served ~115 owned & partner brand stores1
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2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 +243% Asset Manager Canadian Retailer Helly Hansen Revenue Growth USD, FY09 - FY25 We have scaled the Helly Hansen brand over multiple owners Private Equity +8% CAGR Synergistic, multi-brand operating platform Note: Excludes Musto
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What is different with Kontoor Aligned strategic owner with deep industry expertise Proven U.S. capabilities and relationships Strategic investment to accelerate growth Access to Kontoor's multi-brand platform It is truly a game changer for Helly Hansen
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SPORT DELIVERING WORKWEAR FOR THE WORLD'S HARSHEST ENVIRONMENTS PREMIUM OUTDOOR BRAND TRUSTED BY PROFESSIONALS 75% of FY25 revenue WORKWEAR 25% of FY25 revenue Note: FY25 pro-forma revenue, excluding Musto; See Appendix - Supplemental Financial Information for reconciliation of adjusted financial measures
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Specialist European brand in Ski, Sail, and Workwear FROM TO Leading Global Premium, Technical Brand
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Win in PREMIUM OUTDOOR Power WORKWEAR Supercharge the U.S. Helly Hansen's 2030 growth strategy
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TOR CHIEF PRODUCT & MERCHANDISING OFFICER, HELLY HANSEN JENSSEN
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OUR PURPOSE WE ENABLE LIFE - ENHANCING EXPERIENCES BETWEEN PEOPLE AND THE POWER OF NATURE
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OUR MISSION WE MAKE PROFESSIONAL GRADE GEAR TO HELP PEOPLE STAY ALIVE AND FEEL ALIVE
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Quality drives us, it is never, ever compromised. To keep people safe and comfortable in even the harshest conditions and to keep these products durable, we must apply the very highest standards to everything that we do. From our products to how we treat our people to the processes and practices we employ. Our standards aim to exceed the expectations of all those we serve. QUALITY LIVES DEPEND ON IT
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Our work comes with great responsibilities to others. Whether a teammate, a partner, a professional, a shareholder or the environment, we can be relied on to take these responsibilities seriously, honoring our commitments to the communities we serve at every level. RESPONSIBILITY WE HONOR OUR COMMITMENTS
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PASSIONATE WE CARE ABOUT WHAT WE DO AND HAVE FUN DOING IT Every one of us cares deeply about what we do, and how we do it. As a group of dedicated, like-minded people united by this shared passion, we live the promise of our brand. We aim to have fun and believe that people are at their best when they enjoy what they do. This generates a positive energy that in turn drives us forward.
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INNOVATION ALWAYS STRIVING FOR BETTER We are, and always have been, continuously evolving since 1877. We challenge ourselves and our partners to find ingenious new ways to create better solutions; better for our professionals, our consumers, our company and the environment.
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CONTINUING OUR LEGACY OF INNOVATION SINCE 1877
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1949 Helox 1970 LIFA® 1986 3-Layer 2004 Footwear 2018 LIFALOFT 20201924 Linox 1961 Fiber Pile 1984 Helly Tech® 1990 Prowool 2012 H2Flow Lifa Infinity & Lifa Infinity Pro 2024 HH Connect 1877 Debut of Helly Hansen's first waterproof jacket 2026 Njord 2027 Pro Vis H20 150 years of innovation
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Helly Hansen's design process is visibly unique Visibly unique colors Co-created with professionals Scandinavian design
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We are continuously recognized for our innovation in Sport … 2024 2025 2026
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…and Workwear BIFROST WINTER PARKA ICU BRZ JACKET MAGNI EVO CONSTRUCTION PANT BIFROST WNTR TALL BOA S7S HT MAGNI EVO WINTER JACKET NJORD COAST SHELL JACKET
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Professionals are the cornerstone of our innovation engine INNOVATION ENGINE
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SPORT
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WORKWEAR
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SPORT PRO SERVICES WORKWEAR
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NORWEGIAN SKI FEDERATION
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SKI RESORTS
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THE OCEAN RACE
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SEARCH & RESCUE
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HELLY TECH® WATERPROOF. BREATHABLE. WINDPROOF. HELLY TECH® is the waterproof and breathable outer layer between you and the elements. Its unique membrane will keep water molecules out, while allowing sweat vapor to pass through – keeping you dry from the outside and comfortable on the inside. HELLY TECH® is split into 3 subcategories, based on the fabric’s waterproofness and breathability properties: HELLY TECH ® PROFESSIONAL Extremely waterproof and breathable designs and constructions. For highly aerobic, extremely wet or unusually long-lasting activities in extremely harsh conditions. HELLY TECH ® PERFORMANCE Highly waterproof and extra breathable sport-specific designs and constructions. For a wide range of high-performance outdoor activities during highly challenging, changing and unpredictable weather conditions. HELLY TECH ® PROTECTION Fully waterproof, windproof, and breathable fabrics and constructions. For all situations and weather conditions where protection from the elements is needed.
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LIFA® WARM. DRY. COMFORTABLE. LIFA® moves moisture away from the skin, allowing you to stay warm, dry and comfortable. The fabric is based on a yarn technology that has been tested and developed with the help of professionals making their living in some of the world’s harshest environments. HH LIFA ® An ultra-lightweight base layer fabric that works perfectly in the autumn and winter. HH LIFA® delivers light insulation and moisture management through its 100% single-layer LIFA® fibers. The LIFA® technology works best when layered under another garment, as the more garments you wear, the further the sweat and moisture will be transported out of the fabric and away from your skin. HH LIFA ® MERINO A unique 2-in-1 base layer that combines lightweight LIFA® fibers next to skin and an extremely soft merino wool exterior. The LIFA® fabric moves moisture away from skin while the merino wool exterior is excellent at insulating and maintaining warmth. This is Helly Hansen’s warmest base layer and is recommended for any type of outdoor activity in the winter. HH LIFA ® ACTIVE Helly Hansen’s best moisture-management base layer that is great for light insulation all year round. Made from a lightweight, two-layer fabric that is excellent in moving moisture away from the skin; it enables the user to feel warm and comfortable. HH LIFA® Active can be worn as a single layer or can be layered under another garment.
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Continuously innovate to scale technologies to more products LIGHTWEIGHT INSULATION LIFALOFT LIGHTWEIGHT WARMTH LIFA® MERINO MOISTURE MANAGEMENT LIFA® ACTIVE RAIN PROTECTION LIFA INFINITY SUN PROTECTION LIFA® ACTIVE SOLEN TEMPERATURE CONTROL LIFA®
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Today, we play in multiple technical categories SAIL TECHNICAL OUTDOOR WORKWEAR WINTERSPORTS
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PROFESSIONALS PINNACLE FRANCHISE Sail Technical Outdoor Sailing teams Coast guard Ocean racing CREW Mountain Search & Rescue Mountain guides VERGLAS Category expansion playbook driven by focused franchises ESTABLISHED CATEGORY LEADERSHIP FOCUSED EXPANSION
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SCALE LEADERSHIP IN CORE CATEGORIES 1 ADVANCE INNOVATION EXPAND TECHNICAL OUTDOOR FY28 – FY30 contribution FY25 – FY28 contribution 3 0% 60%FY28 – FY30 contribution FY25 – FY28 contribution 70 % 40% Strategic levers to drive growth 1. Core categories includes Wintersports and Sail Note: Based on dollar growth contribution
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Key drivers of success STRONG BRAND, PRODUCT, AND TECHNOLOGY PROVEN CATEGORY EXPANSION PLAYBOOK OPERATING PLATFORM TO FUEL FUTURE GROWTH
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ERINN GLOBAL HEAD OF FINANCE & OPERATIONS, HELLY HANSEN MURPHY
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OUTDOOR Total addressable market: ~$300B Premium Outdoor segment: ~$63B Total addressable market: ~$85B North American & European segment: ~$39B WORKWEAR Source: Global Outdoor and Performance Markets, Euromonitor (as of June 2026); Workwear Market Research, July 2026
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OUTDOOR
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Structural tailwinds in the Premium Outdoor market Innovation-steeped category that drives premium pricing Fastest-growing segment of the Outdoor & Performance market, ~6% CAGR by 2030 Activity-based market with rising levels of participation Extends wearing occasions and share of closet year-round Trail running up 6.6% to 17.2 million participants, and up 57% since 2019, making it one of the fastest-growing segments in the outdoors Source: Global Outdoor and Performance Markets, Euromonitor (as of June 2026)
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We attract a highly-engaged, active core consumer Trust professional endorsements ~20% of Helly Hansen consumers discover the brand through a professional Performance driven Disproportionately care about technical performance Enthusiasts Helly Hansen consumers ski on average 16+ days per year Active outdoors 75%+ of Helly Hansen consumers participate in 3+ technical outdoor activities Source: Helly Hansen consumer research, July 2026
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Helly Hansen U.S. Wintersports consumer profile Gender Age Category spend 65% Male 35% Female 73% $1,500+ spend on Wintersports apparel over 2 years are Millennial, Gen Z, or Gen Alpha Source: Helly Hansen consumer research, July 2026
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Helly Hansen leads the pack on the attributes that drive U.S. consumer choice RATINGS FROM HELLY HANSEN CONSUMERS ON TOP PURCHASE CRITERIA RELATIVE TO RATINGS OF PURCHASERS OF OTHER LEADING BRANDS HIGHER RATEDLOWER RATED TRUSTED BRAND WARMTH WEATHER PROTECTION BDC A A DC B C A D B C B AD LEADING OUTDOOR BRANDS C D $2-4B REV. A B $1-2B REV. TOP PURCHASE CRITERIA IN SKI TECHNICAL PERFORMANCE Respondents asked to rate only last purchased brand. Source: Helly Hansen consumer research, July 2026
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Brand awareness in the U.S. has runway to continue to scale 30% 42% 74% 84% 87% LEADING OUTDOOR BRANDS $2-4B REV.$1-2B REV. A B C D U.S. aided awareness of leading Outdoor brands
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Growth driven by winning more Wintersports consumers Global Wintersports Population (2025) HELLY HANSEN TODAY 140M+ 25M+ Global Wintersports Population U.S. Wintersports Population
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Our U.S. consumer is also active in the technical outdoors 75% 56% 50% 33% Hiking Trail running Backpacking Climbing % of Helly Hansen U.S. Wintersports consumers that participated in other outdoor activities in last 24 months Source: Helly Hansen consumer research, July 2026
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63M+Hiking 17M+Trail running 10M+Climbing 9M+Backpacking Opportunity to capture more spend with Technical Outdoor consumers Estimated annual U.S. participants Source: Outdoor Industry Association
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WORKWEAR
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Workwear is an attractive, fast-growing category Source: Workwear Market Research, July 2026 ~$85B Total addressable market ~6% TAM 2025 - 2030 CAGR WORKWEAR ~$39B North American & European segment
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Supported by structural, durable consumer tailwinds
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Untapped opportunity to attract more U.S. trade consumers Global Workwear Population (2025) 800M+ 35M+ HELLY HANSEN TODAY FY25 Helly Hansen Workwear consumers Global Workwear Population U.S. Workwear Population
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Focused marketing investment to fuel demand acceleration Brand-led marketingPerformance-led marketing Category-led storytellingFragmented marketing across products Dedicated Sport and Workwear marketing teamsCentralized marketing team TO FROM 2X dollar growth in marketing spend through 2030
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Key takeaways Passionate, active consumers Trusted brand with deep credibility Recruit new consumers and increase share of wallet Build brand awareness and double marketing
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Break – we will return in 10 minutes
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BØRRE GLOBAL HEAD OF HELLY HANSEN HEGBOM
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>2X 2016 2020 2025 We have scaled the Sport business >2x since 2016 Helly Hansen Global Sport Revenue USD, 2016-2025 Sport is 75% of FY25 total revenue Note: Based upon total FY25 pro-forma revenue, excluding Musto; See Appendix - Supplemental Financial Information for reconciliation of adjusted financial measures
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Established a diversified, global footprint in Sport U.S. 30% share of FY25 revenue Rest of World 70% share of FY25 revenue Note: Based upon total FY25 pro-forma revenue, excluding Musto; See Appendix - Supplemental Financial Information for reconciliation of adjusted financial measures
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SUPERCHARGE THE U.S.
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Opportunity to grow U.S. revenues in line with leading peers Note: Based upon total FY25 pro-forma revenue, excluding Musto; U.S. revenues for other leading Outdoor brands from public filin gs; See Appendix - Supplemental Financial Information for reconciliation of adjusted financial measures ~$150M A B DC Helly Hansen FY25 U.S. Sport revenue vs. leading Outdoor brands USD, FY25 Helly Hansen Sport LEADING OUTDOOR BRANDS $0.4-1B REV. $1-2B REV.
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Helly Hansen has a healthy, balanced channel mix in the U.S. FY25 U.S. Sport Channel Mix (%) 55% 45%Wholesale Direct to Consumer Note: Based upon total FY25 pro-forma revenue, excluding Musto; See Appendix - Supplemental Financial Information for reconciliation of adjusted financial measures
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Wholesale strategy protects the core while expanding reach PROTECT SPECIALTY SKI / SAIL STORES GROW PREMIUM KEY ACCOUNTS
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Growth driven by deepening penetration in key accounts FY25 FY30 ~1,450 ~1,700 Helly Hansen penetration across U.S. premium key accounts ~6% penetration 25 - 35% penetration Helly Hansen Footprint Total Potential Key Account Doors
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Elevate premium positioning to drive full-price growth Build a seamless omnichannel experience Deepen capabilities to drive retention, loyalty, and customer lifetime value Elevate HellyHansen.com as a premium, full-price destination >2X eCommerce revenue by 2030
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eCommerce is already driving stronger quality of sales +12% increase in AURs (2024 to 2026 YTD) Established Icon status for core franchises Crew Alpha / Alphelia LIFA® Merino Legendary Note: U.S. eCommerce revenue from January 2024 to August 2024 vs. January 2026 to August 2026
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PARK CITY, UT NEWPORT, RI BOSTON, MA Deliver premium retail experiences in strategic locations
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Growth engines to supercharge U.S. demand 45-50% Contribution to 2030 revenue growth STRATEGIC WHOLESALE EXPANSION DTC eCommerce + Retail 50-55% Contribution to 2030 revenue growth
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SCALING GLOBAL GROWTH
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Massive headroom remains in the largest Outdoor markets CHINA (JV) ~$9B premium outdoor ~1.1% Helly Hansen share EUROPE ~$14B premium outdoor ~2.6% Helly Hansen share U.S. ~$20B premium outdoor ~1.2% Helly Hansen share Note: Market shares based on FY25 pro-forma retail equivalent revenue, excluding Musto Source: Global Outdoor and Performance Markets, Euromonitor (as of June 2026)
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Why the Alps? Europe's largest Outdoor market with four-season opportunity Helly Hansen’s highest eCommerce penetration in Europe Opened flagship store in Munich in 2026 Largest Ski market in Europe
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Unlocking China's Outdoor opportunity Helly Hansen entered China through a 50/50 JV with a strong local partner, Youngor 10-year agreement established in 2020 Experienced local management team Launched as a Sailing brand and expanded into Outdoor Product manufactured in China with regional design hubs in Korea, Osaka, and Shanghai
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Driving strong results in China Helly Hansen maintains a highly premium positioning, with pricing 30 – 40% above Europe China is a mono-brand, retail-led market Store footprint growing from ~90 in 2025 to >130 in 2026 Broad distribution across leading digital platforms China is already a meaningful growth engine ~$100M of revenue in FY25 >80% revenue growth delivered in 1H26
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Key takeaways Strong U.S. position today Runway to scale Ski, Sail, and Technical Outdoor All markets expected to continue to grow Growth driven by expanding strategic wholesale and DTC
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PATRIK GLOBAL HEAD OF HELLY HANSEN WORKWEAR FALKENBY
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Workwear is core to Helly Hansen’s DNA Founded in 1877 to engineer waterproof gear for Norwegian sailors and fishermen Expanded from the sea to the job site across many professional trades
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The global Workwear market is large, growing, and important for Helly Hansen’s future growth ~$85B ~$39B Global Workwear Market North American & European Workwear Market $39 billion North American and European Workwear market The market is fast-growing at ~6% CAGR through 2030 Growing demand for functional, certified and higher-performance Workwear apparel & footwear Source: Workwear Market Research, July 2026
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Workwear market benefits from durable, recurring demand Consistent, recurring business High average order volumes Longer product cycles (5-10 years), less fashion volatility Year-round demand with limited seasonality
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Workwear has structurally-advantaged category dynamics High brand loyalty Increasing safety standards support premiumization Frequent repurchasing cycles every 6 – 12 months High wear and tear rate driven by high product usage
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Three main customer types in Workwear market Source: Helly Hansen consumer research, 2025 1 purchaser for 1,000+ users 87% repeat purchase intent Relationship - enabled volume driver Employers B2B & tenders Dealers B2B Individual Buyers B2C
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Increasing maturity and premiumization globally Relative Workwear market maturity and relative premiumization High Low
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Helly Hansen has built a scaled Workwear business Helly Hansen Workwear Revenue USD, FY16 - FY25 2016 2020 2025 +102%~2x Note: Based upon total FY25 pro-forma revenue, excluding Musto; See Appendix - Supplemental Financial Information for reconciliation of adjusted financial measures
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Great brand Great products Great people Foundation for success
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We focus on 3 core categories where performance matters most
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Core categories drive ~70% of revenues in key regions Nordics Rest of World U.S. Trades Hi Vis Footwear Other1 70% 1. Includes Fundamentals, Rainwear, Base Layers, FR Multi -Norm, Winter Tech, and Accessories Note: Based upon total FY25 pro-forma revenue, excluding Musto FY25 Workwear Revenues Opportunity
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Supporting categories broaden how we serve our consumers
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Core categories anchored by product concepts Trades Hi Vis Footwear Magni ICU Magni TRX
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Kensington Chelsea evolution Magni Good Best PRICE Nordics Europe Core concepts are designed to serve a broad range of needs North America TECHNICAL PERFORMANCE Better Oxford Manchester Value for money Volume drivers Brand builders Luna (W)
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Magni changed the Workwear market Magni series is for the new, modern tradesman not willing to compromise between style and function. We use our knowledge from creating outdoor and expedition apparel in sportswear and combining this with almost 150 years of workwear experience to push our boundaries.
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Pants represent ~40% of revenue in core categories
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We develop premium products with professionals
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WHERE DOES IT FIT IN AND HOW DOES IT WORK? ZIP SNAP CONNECTED HH CONNECT is an interchangeable pocket system that offers end users more flexibility on their product of choice. The solution allows the user to optimize their work, using different pockets for different needs. DURABLE. INTERCHANGEABLE. VERSATILE.
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Provis H20 Cooling garments, reducing heat stress 4-way stretch, industrial wash fabric 2027 2028 We are already investing behind the next wave of innovation Njord Extreme weather protection for coastal workers 2026
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How we win in the U.S. market Distribution Accelerate eCommerce and grow strategic key accounts to reach more individual users in B2C-led market People Build a dedicated U.S. organization across sales, eCommerce, & marketing Product Scale existing assortment and invest in tailored product concepts STRATEGY INVEST & SCALE Marketing Significantly increase brand and performance-led marketing
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We have the product to scale in the U.S. market today OXFORD HYBRID INSULATED JACKET OXFORD 2.0 WORK JACKET OXFORD 2.0 HH CONNECT PANT NA
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Key takeaways Large, fast - growing Workwear market Highly consistent business with deep consumer loyalty Built a scaled Workwear business with limited investment to - date Focused product strategy anchored by differentiated technologies Scale European credibility through a tailored U.S. strategy
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MIKE GLOBAL BRAND & OPERATIONS, FINANCE KARAPETIAN
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COMPELLING ASSET FOCUSED GROWTH PLAN STRONGER KONTOOR PORTFOLIO STRATEGIC REINVESTMENT
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COMPELLING ASSET
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Attractive business profiles Geographic mix Channel mix Product mix SPORT 70% Wholesale 30% DTC 30% U.S. 55% Europe 15% Rest of World 88% Apparel 7% Footwear 5% Accessories & other Revenue 7 5% of revenue Note: Based upon total FY25 pro-forma revenue, excluding Musto
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Attractive business profiles Geographic mix Channel mix Product mix Revenue WORKWEAR 25% of revenue 95% Wholesale 5% DTC 10% U.S. 80% Europe 10% Rest of World 75% Apparel 20% Footwear 5% Accessories & other Note: Based upon total FY25 pro-forma revenue, excluding Musto
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Significant runway in the largest markets Note: Market shares based on FY25 pro-forma retail equivalent revenue, excluding Musto Source: Global Outdoor and Performance Markets, Euromonitor (as of June 2026) EUROPE SPORT ~$14B premium outdoor ~2.6% Helly Hansen share WORKWEAR ~$22B market ~1.2% Helly Hansen share U.S. SPORT ~$20B premium outdoor ~1.2% Helly Hansen share WORKWEAR ~$15B market ~0.2% Helly Hansen share CHINA (JV) SPORT ~$9B premium outdoor ~1.1% Helly Hansen share
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Helly Hansen reinforces our acquisition commitments Strong cultural fit and alignment of values Immediately accretive to our financial profile Retain balance sheet flexibility; strong cash generation & returns on capital Complementary portfolio, leveraging Kontoor strengths & operating model Significant synergy potential Authentic brand in structurally attractive addressable markets ACQUISITION CRITERIA
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STRATEGIC REINVESTMENT
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Driving significant investment capacity to fund the growth Multi-brand Platform & Synergies Accretive Product & Channel Mix Fixed Cost Leverage Advantaged Tax Platform 1 2 3 4
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Focused on four strategic pools of reinvestment Product development & innovation Scale Technical Outdoor assortment Continue to advance Icons & franchises Invest behind next wave of innovation Brand marketing Rebalance brand and performance marketing Increase Sport and Workwear marketing spend Commercial expansion Focused door expansion across wholesale and retail Elevate DTC as a premium, full-price destination and deepen consumer engagement Key talent Dedicated Sport & Workwear organizations Expanded U.S. organization Set the foundation Accelerate the growth
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Investments driving strong results, ahead of plan ~100 days reduction REVENUE ADJ. GROSS MARGIN ADJ. OPERATING MARGIN ADJ. EPS ACCRETION 2 CASH GENERATION INVENTORY MANAGEMENT $705M 51.1% 9.7% $0.63 $100M+ TRAILING 12 -MONTH PERFORMANCE 1 ACQUISITION PLAN 1 Note: See Appendix – Supplemental Financial Information for reconciliation of adjusted financial measures; 1. Helly Hansen perfo rmance, excluding Musto for the trailing twelve-month period Q3 2025 through Q2 2026 RELATIVE TO ACQUISITION PLAN
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FOCUSED GROWTH PLAN
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Win in PREMIUM OUTDOOR Power WORKWEAR Supercharge the U.S. Helly Hansen's 2030 growth strategy $500M opportunity
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ACTIVITY CATEGORY LEADERSHIP FY25 MARKET SIZE FY25 MARKET SHARE % +100 BPS WINTERSPORTS SAILING TECHNICAL OUTDOOR ~$14B ~$5B ~$44B ~1.0% ~4.0% ~0.4% +$140M +$50M +$440M REVENUE POTENTIAL Global Premium Outdoor market by activity We have the credibility to win in the Premium Outdoor market Note: Market shares based on FY25 pro-forma retail equivalent revenue, excluding Musto Source: Global Outdoor and Performance Market, Euromonitor (as of June 2026); Business Research Insights; DataIntelo
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Expand distribution reach across wholesale and DTC Accelerate marketing to increase awareness Strengthen capabilities and commercial talent Scale Technical Outdoor assortment and advance innovation platforms Win in Outdoor
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REGION DEDICATED ORGANIZATION FY25 MARKET SIZE FY25 MARKET SHARE % NORDICS U.S. REST OF EUROPE & CANADA ~$2B ~$15B ~$22B ~6.0% ~0.2% ~0.8% North American & European Workwear market by region Deeper penetration and stronger performance in regions with dedicated organizations +100 BPS +$20M +$150M +$220M REVENUE POTENTIAL Note: Market shares and revenue potential based on FY25 pro-forma retail equivalent revenue, excluding Musto Source: Workwear Market Research, July 2026
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Power Workwear Accelerate eComm and wholesale reach Increase community engagement & awareness to capture market share Build a dedicated U.S. Workwear organization Invest in a U.S.-focused product assortment
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Helly Hansen revenue growth algorithm U.S. REST OF WORLD MSD% CAGR MSD% CAGR MSD% CAGR SPORT WORKWEAR HELLY HANSEN High teens CAGR $150M+ >20% CAGR FY30 revenue assumptions
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STRONGER KONTOOR PORTFOLIO
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Near-term margin expansion funds accelerated growth 2025 2030 Create investment capacity Foundational investments Growth acceleration Note: Chart is illustrative, not drawn to scale. Operating Margin Revenue
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Cumulative gross margin expansion to FY30 Helly Hansen gross margin algorithm 47.5% Mid– High 50s FY25 FY30 FX, pricing, input costs neutral Accretive mix, Kontoor multi-brand platform, and synergies
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FY251 FY30 Helly Hansen operating margin algorithm Cumulative operating margin expansion to FY30 9.3% Mid- teens Kontoor multi-brand platform Growth investments Accretive mix Synergies Scale leverage 1. FY25 operating margin for the period May 31, 2025 through January 3, 2026 is on an adjusted basis; See Appendix – Supplemental Financial Information for reconciliation of adjusted financial measures.
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Helly Hansen accelerates Kontoor’s growth & earnings profile FY30 $1.1B+REVENUE Mid-teens %OPERATING MARGIN Mid-to-High 50%GROSS MARGIN $500M+CUMULATIVE CASH GENERATION New market expansion, China JVADDITIONAL UPSIDE DRIVERS
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TAKK . THANK YOU .
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Q&A
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Appendix Supplemental Financial Information
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Non-GAAP Financial Measures This presentation refers to non-GAAP financial measures, including Helly Hansen combined net revenues for fiscal 2025, which is used in this presentation as the base period for the Helly Hansen revenue compound annual growth rate. Reconciliation of these non-GAAP measures to the most comparable GAAP measures are presented in the supplemental financial information included with this presentation 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 presentation may be different from similarly titled measures used by other companies. For forward-looking non-GAAP measures included in this presentation, the Company does not provide a reconciliation to the most comparable GAAP financial measures because the information needed to reconcile these measures is unavailable due to the inherent difficulty of forecasting the timing and/or amount of various items that have not yet occurred and have been excluded from adjusted measures. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with the Company’s accounting policies for future periods requires a level of precision that is unavailable for these future periods and cannot be accomplished without unreasonable effort.
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Reconciliation of Adjusted Financial Measures - Year-to-Date (Non-GAAP), (Unaudited) Twelve Months Ended December (Dollars in thousands) 2025 2019 Net revenues - as reported under GAAP $ 3,152,456 $ 2,548,839 Business model changes (a) — (25,805) Adjusted net revenues $ 3,152,456 $ 2,523,034 Cost of goods sold - as reported under GAAP $ 1,729,067 $ 1,544,465 Restructuring, separation and transformation costs (b) (46,341) (24,191) Business model changes (a) — (24,194) Other adjustments (c) — (1,804) Adjusted cost of goods sold $ 1,682,726 $ 1,494,276 Gross margin - as reported under GAAP $ 1,423,389 $ 1,004,374 Restructuring, separation and transformation costs (b) 46,341 24,191 Business model changes (a) — (1,611) Other adjustments (c) — 1,804 Adjusted gross margin $ 1,469,730 $ 1,028,758 As a percentage of total net revenues 46.6% 40.8% (a) See Note 1 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (b) See Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (c) See Note 3 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (d) See Note 4 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on an adjusted basis, reflecting the Company's historical consolidated results, including the operations of the Lee business. The adjusted basis presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers.
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Reconciliation of Adjusted Financial Measures - Year-to-Date (Non-GAAP), (Unaudited) Twelve Months Ended December (Dollars in thousands), unaudited 2025 2019 Selling, general and administrative expenses - as reported under GAAP $ 1,086,581 $ 803,448 Restructuring, separation and transformation costs (b) (34,258) (58,912) Business model changes (a) — (6,134) Other adjustments (c) — (19,541) Acquisition and integration-related costs (d) (50,834) — Adjusted selling, general and administrative expenses $ 1,001,489 $ 718,861 Operating income - as reported under GAAP $ 336,808 $ 200,926 Restructuring, separation and transformation costs (b) 80,599 83,103 Business model changes (a) — 4,523 Other adjustments (c) — 21,345 Acquisition and integration-related costs (d) 50,834 — Adjusted operating income $ 468,241 $ 309,897 As a percentage of total net revenues 14.9% 12.3% (a) See Note 1 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (b) See Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (c) See Note 3 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (d) See Note 4 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on an adjusted basis, reflecting the Company's historical consolidated results, including the operations of the Lee business. The adjusted basis presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers.
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Reconciliation of Adjusted Financial Measures - Helly Hansen Trailing Twelve Months (Non-GAAP), (Unaudited) Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on an adjusted basis. The net revenues, cost of goods sold, and selling, general and administrative expenses as reported under GAAP represent the sum of the Helly Hansen business segment information, as previously reported in the Company's Form 10-Q filings, for the three-month periods ended September 2025, December 2025, March 2026 and June 2026. The adjusted basis presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers. (Dollars in thousands, except per share amounts) Helly Hansen Trailing Twelve Months Ended June 2026 Net revenues - as reported under GAAP $ 705,333 Cost of goods sold - as reported under GAAP $ 343,727 U.S. Customs 2025 tariffs (e) (1,360) Adjusted cost of goods sold $ 345,087 Gross margin - as reported under GAAP $ 361,606 U.S. Customs 2025 tariffs (e) 1,360 Adjusted gross margin $ 360,246 As a percentage of total net revenues 51.1 % Selling, general and administrative expenses - as reported under GAAP $ 298,998 Acquisition and integration-related costs (d) (7,252) Adjusted selling, general and administrative expenses $ 291,746 Operating income - as reported under GAAP $ 62,608 U.S. Customs 2025 tariffs (e) (1,360) Acquisition and integration-related costs (d) 7,252 Adjusted operating income $ 68,500 As a percentage of total net revenues 9.7 % Diluted earnings per share - as reported under GAAP $ 0.55 U.S. Customs 2025 tariffs (e) (0.02) Acquisition and integration-related costs (d) 0.10 Adjusted diluted earnings per share $ 0.63 (d) See Note 4 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (e) See Note 5 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document.
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Reconciliation of Adjusted Financial Measures - Helly Hansen Seven Months Ended January 3, 2026 (Non-GAAP), (Unaudited) Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on an adjusted basis. The net revenues, cost of goods sold, and selling, general and administrative expenses as reported under GAAP represent the Helly Hansen business segment information, as previously reported in the Company's 2025 Annual Report on Form 10-K, for the seven month period from the Helly Hansen acquisition closing date of May 31, 2025 through January 3, 2026. The adjusted basis presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers. (d) See Note 4 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. Helly Hansen Seven Months (Dollars in thousands) Ended January 3, 2026 Net revenues - as reported under GAAP $ 459,716 Cost of goods sold - as reported under GAAP $ 241,512 Gross margin - as reported under GAAP $ 218,204 As a percentage of total net revenues 47.5 % Selling, general and administrative expenses - as reported under GAAP $ 182,588 Acquisition and integration-related costs (d) (7,105) Adjusted selling, general and administrative expenses $ 175,483 Operating income - as reported under GAAP $ 35,616 Acquisition and integration-related costs (d) 7,105 Adjusted operating income $ 42,721 As a percentage of total net revenues 9.3 %
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Non-GAAP Financial Information: The financial information above presents the FY25 pro-forma net revenues for the Helly Hansen business segment. The net revenues as reported under GAAP represent the Helly Hansen business segment information, as previously reported in the Company's 2025 Annual Report on Form 10-K, for the seven-month period from the Helly Hansen acquisition closing date of May 31, 2025 through January 3, 2026. The net revenues for the five-month period ended May 31, 2025, representing the FY25 period prior to ownership by the Company, are derived from the pro-forma financial information as previously included in the Company's Current Report on Form 8-K/A, filed on August 14, 2025, with the U.S. Securities and Exchange Commission. Amounts herein may not recalculate due to the use of unrounded numbers. Selected Helly Hansen Fiscal 2025 (FY25) Pro-Forma Results (Unaudited) (Dollars in thousands) FY25 Helly Hansen net revenues for the seven months ended January 3, 2026 - as reported under GAAP $ 459,716 Helly Hansen net revenues for the five months ended May 31, 2025 215,375 Helly Hansen FY 25 pro-forma net revenues for the twelve months ended January 3, 2026 $ 675,091
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Adjusted Return on Invested Capital (Non-GAAP), (Unaudited) Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on an adjusted basis, reflecting the Company's historical consolidated results, including the operations of the Lee business. The adjusted basis presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers. Twelve Months Ended (Dollars in thousands) December 2025 December 2019 Numerator Net income $ 227,452 $ 96,654 Plus: Income taxes 71,220 38,540 Plus: Interest income (expense), net 54,863 31,856 Less: Interest income from former parent, net — (3,762) EBIT $ 353,535 $ 163,288 Plus: Restructuring, separation and transformation costs (b) 80,599 83,103 Plus: Acquisition and integration-related costs (d) 26,718 — Plus: Business model changes (a) — 4,380 Plus: Non-cash impairment of intangible asset (f) — 32,636 Plus: Operating lease interest (g) 2,564 — Plus: Other adjustments (c) — 26,621 Adjusted EBIT $ 463,416 $ 310,028 Adjusted effective income tax rate 18 % 29 % Adjusted net operating profit after taxes $ 379,660 $ 221,648 (a) See Note 1 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (b) See Note 2 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (c) See Note 3 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (d) See Note 4 of “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. (f) Represents a $32.6 million impairment charge related to the Rock & Republic® trademark recorded during the twelve months ended December 2019. (g) Operating lease interest is based upon the discount rate for each lease and recorded as a component of rent expense within “Selling, general and administrative expenses” in the Company's statements of operations. The adjustment for operating lease interest represents the add-back to earnings before interest and taxes (“EBIT”) based upon the assumption that properties under our operating leases were owned or accounted for as finance leases. Operating lease interest is added back to EBIT in the adjusted ROIC calculation to account for differences in capital structure between us and other companies.
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Adjusted Return on Invested Capital (Non-GAAP), (Unaudited) Twelve Months Ended (Dollars in thousands) December 2025 December 2024 December 2019 December 2018 Denominator Equity $ 564,867 $ 400,055 $ 69,257 $ 1,723,452 Plus: current portion of long-term debt and other borrowings 8,750 — 1,070 3,215 Plus: noncurrent portion of long-term debt 1,134,579 740,315 913,269 — Plus: operating lease liabilities (h) 150,540 50,845 90,135 — Less: cash & cash equivalents (108,442) (334,066) (106,808) (96,776) Invested Capital $ 1,750,294 $ 857,149 $ 966,923 $ 1,629,891 Average Invested Capital (i) $ 1,303,722 $ 1,298,407 Adjusted return on invested capital 29.1 % 17.1 % (h) Total of "Operating lease liabilities, current" and "Operating lease liabilities, noncurrent" in the Company's balance sheets. (i) The average is based on the "Invested capital" at the end of the current period and at the end of the comparable prior period. Non-GAAP Financial Information: The financial information above has been presented on a GAAP basis and on an adjusted basis, reflecting the Company's historical consolidated results, including the operations of the Lee business. The adjusted basis presentations are non-GAAP measures. See “Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures” at the end of this document. Amounts herein may not recalculate due to the use of unrounded numbers.
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Notes to Supplemental Financial Information - Reconciliation of Adjusted 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. Cumulative Free Cash Flow represents the sum of the Company's "Cash provided by operating activities", as reported under GAAP in the Company's statements of cash flows, for each of the twelve-month periods ended December 2019 through December 2025, and excludes the amounts: (i) due from our former parent of $548.3 million in the twelve months ended December 2019; (ii) expenditures for property, plant and equipment for each of the twelve-month periods ended December 2019 through December 2025; and (iii) expenditures for capitalized computer software for each of the twelve-month periods ended December 2019 through December 2025. Twelve Months Ended December (Dollars in thousands) 2019 2020 2021 2022 2023 2024 2025 Cumulative Total Cash provided by operating activities - as reported under GAAP $ 777,788 $ 241,970 $ 283,862 $ 83,585 $ 356,549 $ 368,230 $ 455,809 $ 2,567,793 Amount due from former parent 548,301 — — — — — — 548,301 Property, plant & equipment expenditures (22,679) (18,182) (10,551) (18,375) (27,366) (18,788) (21,047) (136,988) Capitalized computer software (14,807) (44,207) (26,322) (10,022) (10,018) (3,334) (4,111) (112,821) Free Cash Flow $ 192,001 $ 179,581 $ 246,989 $ 55,188 $ 319,165 $ 346,108 $ 430,651 $ 1,769,683
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Notes to Supplemental Financial Information - Reconciliation of Adjusted Financial Measures Cumulative Shareholder Returns represents the sum of "Dividends paid" and "Repurchases of common stock", as reported under GAAP in the Company's statements of cash flows, for each of the twelve-month periods ended December 2019 through December 2025 and for the six-month period ended June 2026. (1) During the twelve months ended December 2019, business model changes primarily related to the transition of our former Central and South America region to a licensed model and the discontinuation of manufacturing for our former parent. (2) During the twelve months ended December 2025, the Company incurred $80.6 million of restructuring and transformation charges related to the closure of one of our manufacturing facilities and business optimization activities, of which $46.3 million were recorded in "cost of goods sold", and $34.3 million were recorded in "selling, general and administrative expenses". During the twelve months ended December 2025, total restructuring and transformation costs resulted in a corresponding tax impact of $16.0 million. During the twelve months ended December 2019, the Company incurred $83.1 million of restructuring and separation costs relate to strategic actions taken to achieve cost savings, and separation costs related to the spin-off from our former parent and the establishment of Kontoor as a separate public company, including the implementation of a new global ERP system and information technology infrastructure. During the twelve months ended December 2019, total restructuring and separation costs resulted in a corresponding tax impact of $13.8 million. (3) During the twelve months ended December 2019, other adjustments includes the impact of actions taken to exit certain points of distribution in India. (4) During the twelve months ended December 2025, acquisition and integration-related costs included $50.8 million of professional and other fees related to 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. During the trailing twelve months ended June 2026, for the Helly Hansen business segment, acquisition and integration-related costs included $7.3 million of professional and other fees related to the acquisition and integration. During the seven months ended January 3, 2026, for the Helly Hansen business segment, acquisition and integration-related costs included $7.1 million of professional and other fees related to the acquisition and integration. (5) During the trailing twelve months ended June 2026, for the Helly Hansen business segment, a refund of $1.4 million associated with IEEPA tariffs previously expensed in 2025 has been adjusted from the results. Twelve Months Ended December (Dollars in thousands) 2019 2020 2021 2022 2023 2024 2025 Six months ended June 2026 Cumulative Total Dividends paid - as reported under GAAP $63,555 $54,768 $95,081 $103,661 $108,574 $112,060 $116,085 $58,462 $712,246 Repurchases of common stock - as reported under GAAP — — 75,462 62,494 30,111 85,677 25,000 75,442 354,186 Total Shareholder Returns $63,555 $54,768 $170,543 $166,155 $138,685 $197,737 $141,085 $133,904 $1,066,432