Cover
| Cover - shares | 6 Months Ended | |
| Jun. 29, 2024 | Jul. 26, 2024 | |
| Cover [Abstract] | ||
| Document Type | 10-Q | |
| Document Quarterly Report | true | |
| Document Period End Date | Jun. 29, 2024 | |
| Entity Transition Report | false | |
| Entity File Number | 001-38854 | |
| Entity Registrant Name | KONTOOR BRANDS, INC. | |
| Entity Incorporation, State or Country Code | NC | |
| Entity Tax Identification Number | 83-2680248 | |
| Entity Address, Address Line One | 400 N. Elm Street | |
| Entity Address, City or Town | Greensboro | |
| Entity Address, State or Province | NC | |
| Entity Address, Postal Zip Code | 27401 | |
| City Area Code | 336 | |
| Local Phone Number | 332-3400 | |
| Title of 12(b) Security | Common Stock, no par value | |
| Trading Symbol | KTB | |
| Security Exchange Name | NYSE | |
| Entity Current Reporting Status | Yes | |
| Entity Interactive Data Current | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Small Business | false | |
| Entity Emerging Growth Company | false | |
| Entity Shell Company | false | |
| Entity Common Stock, Shares Outstanding | 55,685,269 | |
| Amendment Flag | false | |
| Document Fiscal Year Focus | 2024 | |
| Document Fiscal Period Focus | Q2 | |
| Entity Central Index Key | 0001760965 | |
| Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets (Un
| Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Current assets | |||
| Cash and cash equivalents | $ 224,296 | $ 215,050 | $ 82,418 |
| Accounts receivable, net | 205,019 | 217,673 | 186,024 |
| Inventories | 488,340 | 500,353 | 626,885 |
| Prepaid expenses and other current assets | 104,357 | 110,808 | 114,345 |
| Total current assets | 1,022,012 | 1,043,884 | 1,009,672 |
| Property, plant and equipment, net | 108,150 | 112,045 | 106,878 |
| Operating lease assets | 55,850 | 54,812 | 65,388 |
| Intangible assets, net | 11,854 | 12,497 | 12,941 |
| Goodwill | 209,493 | 209,862 | 209,969 |
| Other assets | 205,080 | 212,339 | 203,469 |
| TOTAL ASSETS | 1,612,439 | 1,645,439 | 1,608,317 |
| Current liabilities | |||
| Short-term borrowings | 0 | 0 | 62 |
| Current portion of long-term debt | 0 | 20,000 | 15,000 |
| Accounts payable | 196,460 | 180,220 | 195,282 |
| Accrued and other current liabilities | 153,903 | 171,414 | 156,766 |
| Operating lease liabilities, current | 22,714 | 21,003 | 21,899 |
| Total current liabilities | 373,077 | 392,637 | 389,009 |
| Operating lease liabilities, noncurrent | 35,911 | 36,753 | 42,044 |
| Other liabilities | 86,646 | 80,215 | 80,743 |
| Long-term debt | 749,654 | 763,921 | 773,270 |
| Total liabilities | 1,245,288 | 1,273,526 | 1,285,066 |
| Commitments and contingencies | |||
| Equity | |||
| Preferred Stock, no par value; shares authorized, 90,000,000; no shares outstanding at June 2024, December 2023 and June 2023 | 0 | 0 | 0 |
| Common Stock, no par value; shares authorized, 600,000,000; shares outstanding of 55,673,753 at June 2024; 55,720,251 at December 2023 and 56,109,508 at June 2023 | 0 | 0 | 0 |
| Additional paid-in capital | 297,518 | 273,197 | 258,349 |
| Retained earnings | 164,569 | 166,567 | 124,995 |
| Accumulated other comprehensive loss | (94,936) | (67,851) | (60,093) |
| Total equity | 367,151 | 371,913 | 323,251 |
| TOTAL LIABILITIES AND EQUITY | $ 1,612,439 | $ 1,645,439 | $ 1,608,317 |
Consolidated Balance Sheets (Pa
| Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Statement of Financial Position [Abstract] | |||
| Preferred stock, no par value (in USD per share) | $ 0 | $ 0 | $ 0 |
| Preferred stock, shares authorized (in shares) | 90,000,000 | 90,000,000 | 90,000,000 |
| Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
| Common stock, no par value (in USD per share) | $ 0 | $ 0 | $ 0 |
| Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 | 600,000,000 |
| Common stock, shares outstanding (in shares) | 55,673,753 | 55,720,251 | 56,109,508 |
Consolidated Statements of Oper
| Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Income Statement [Abstract] | ||||
| Net revenues | $ 606,898 | $ 616,009 | $ 1,238,100 | $ 1,283,132 |
| Costs and operating expenses | ||||
| Cost of goods sold | 335,538 | 365,748 | 681,596 | 746,170 |
| Selling, general and administrative expenses | 196,117 | 186,864 | 396,831 | 378,616 |
| Total costs and operating expenses | 531,655 | 552,612 | 1,078,427 | 1,124,786 |
| Operating income | 75,243 | 63,397 | 159,673 | 158,346 |
| Interest expense | (10,382) | (9,663) | (19,674) | (19,936) |
| Interest income | 2,616 | 691 | 5,041 | 1,110 |
| Other expense, net | (3,021) | (3,152) | (5,904) | (5,378) |
| Income before income taxes | 64,456 | 51,273 | 139,136 | 134,142 |
| Income taxes | 12,687 | 14,877 | 27,860 | 31,450 |
| Net income | $ 51,769 | $ 36,396 | $ 111,276 | $ 102,692 |
| Earnings per common share | ||||
| Basic (in USD per share) | $ 0.93 | $ 0.65 | $ 2 | $ 1.84 |
| Diluted (in USD per share) | $ 0.92 | $ 0.64 | $ 1.97 | $ 1.80 |
| Weighted average shares outstanding | ||||
| Basic (in shares) | 55,810 | 56,089 | 55,772 | 55,868 |
| Diluted (in shares) | 56,456 | 56,846 | 56,597 | 56,893 |
Consolidated Statements of Comp
| Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Statement of Comprehensive Income [Abstract] | ||||
| Net income | $ 51,769 | $ 36,396 | $ 111,276 | $ 102,692 |
| Other comprehensive (loss) income | ||||
| Net change in foreign currency translation | (9,146) | 4,529 | (11,669) | 12,852 |
| Net change in defined benefit pension plans | (58) | (35) | (140) | (70) |
| Net change in derivative financial instruments | (17,500) | 3,418 | (15,276) | 6,790 |
| Total other comprehensive (loss) income, net of related taxes | (26,704) | 7,912 | (27,085) | 19,572 |
| Comprehensive income | $ 25,065 | $ 44,308 | $ 84,191 | $ 122,264 |
Consolidated Statements of Cash
| Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
| Jun. 29, 2024 | Jul. 01, 2023 | |
| OPERATING ACTIVITIES | ||
| Net income | $ 111,276 | $ 102,692 |
| Adjustments to reconcile net income to cash provided by operating activities: | ||
| Depreciation and amortization | 19,530 | 18,219 |
| Stock-based compensation | 13,669 | 7,023 |
| Provision for doubtful accounts | 828 | (278) |
| Other | 3,264 | 9,113 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 7,737 | 44,043 |
| Inventories | 8,444 | (25,574) |
| Accounts payable | 17,992 | (11,545) |
| Income taxes | (1,505) | (22,242) |
| Accrued and other current liabilities | (16,401) | (20,665) |
| Other assets and liabilities | (12,163) | 10,890 |
| Cash provided by operating activities | 152,671 | 111,676 |
| INVESTING ACTIVITIES | ||
| Property, plant and equipment expenditures | (8,122) | (13,277) |
| Capitalized computer software | (2,045) | (6,756) |
| Other | (1,265) | (10) |
| Cash used by investing activities | (11,432) | (20,043) |
| FINANCING ACTIVITIES | ||
| Borrowings under revolving credit facility | 0 | 268,000 |
| Repayments under revolving credit facility | 0 | (268,000) |
| Repayments of term loan | (35,000) | (5,000) |
| Repurchases of Common Stock | (45,271) | 0 |
| Dividends paid | (55,732) | (53,756) |
| Shares withheld for taxes, net of proceeds from issuance of Common Stock | (1,037) | (3,057) |
| Other | 0 | (7,236) |
| Cash used by financing activities | (137,040) | (69,049) |
| Effect of foreign currency rate changes on cash and cash equivalents | 5,047 | 655 |
| Net change in cash and cash equivalents | 9,246 | 23,239 |
| Cash and cash equivalents – beginning of period | 215,050 | 59,179 |
| Cash and cash equivalents – end of period | $ 224,296 | $ 82,418 |
Consolidated Statements of Equi
| Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
| Balance, beginning (in shares) at Dec. 31, 2022 | 55,517,000 | ||||
| Balance, beginning at Dec. 31, 2022 | $ 250,757 | $ 0 | $ 243,696 | $ 86,726 | $ (79,665) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 66,296 | 66,296 | |||
| Stock-based compensation, net (in shares) | 417,000 | ||||
| Stock-based compensation, net | (2,617) | 7,412 | (10,029) | ||
| Other comprehensive income (loss) | 11,660 | 11,660 | |||
| Dividends on Common Stock | (26,808) | (26,808) | |||
| Balance, ending (in shares) at Apr. 01, 2023 | 55,934,000 | ||||
| Balance, ending at Apr. 01, 2023 | 299,288 | $ 0 | 251,108 | 116,185 | (68,005) |
| Balance, beginning (in shares) at Dec. 31, 2022 | 55,517,000 | ||||
| Balance, beginning at Dec. 31, 2022 | 250,757 | $ 0 | 243,696 | 86,726 | (79,665) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 102,692 | ||||
| Other comprehensive income (loss) | $ 19,572 | ||||
| Balance, ending (in shares) at Jul. 01, 2023 | 56,109,508 | 56,110,000 | |||
| Balance, ending at Jul. 01, 2023 | $ 323,251 | $ 0 | 258,349 | 124,995 | (60,093) |
| Balance, beginning (in shares) at Apr. 01, 2023 | 55,934,000 | ||||
| Balance, beginning at Apr. 01, 2023 | 299,288 | $ 0 | 251,108 | 116,185 | (68,005) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 36,396 | 36,396 | |||
| Stock-based compensation, net (in shares) | 176,000 | ||||
| Stock-based compensation, net | 6,603 | 7,241 | (638) | ||
| Other comprehensive income (loss) | 7,912 | 7,912 | |||
| Dividends on Common Stock | $ (26,948) | (26,948) | |||
| Balance, ending (in shares) at Jul. 01, 2023 | 56,109,508 | 56,110,000 | |||
| Balance, ending at Jul. 01, 2023 | $ 323,251 | $ 0 | 258,349 | 124,995 | (60,093) |
| Balance, beginning (in shares) at Dec. 30, 2023 | 55,720,251 | 55,720,000 | |||
| Balance, beginning at Dec. 30, 2023 | $ 371,913 | $ 0 | 273,197 | 166,567 | (67,851) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 59,507 | 59,507 | |||
| Stock-based compensation, net (in shares) | 309,000 | ||||
| Stock-based compensation, net | 4,103 | 11,209 | (7,106) | ||
| Other comprehensive income (loss) | (381) | (381) | |||
| Dividends on Common Stock | (27,844) | (27,844) | |||
| Repurchases of Common Stock (in shares) | (337,000) | ||||
| Repurchases of Common Stock | (20,105) | (105) | (20,000) | ||
| Balance, ending (in shares) at Mar. 30, 2024 | 55,692,000 | ||||
| Balance, ending at Mar. 30, 2024 | $ 387,193 | $ 0 | 284,301 | 171,124 | (68,232) |
| Balance, beginning (in shares) at Dec. 30, 2023 | 55,720,251 | 55,720,000 | |||
| Balance, beginning at Dec. 30, 2023 | $ 371,913 | $ 0 | 273,197 | 166,567 | (67,851) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 111,276 | ||||
| Other comprehensive income (loss) | $ (27,085) | ||||
| Repurchases of Common Stock (in shares) | (700,000) | ||||
| Repurchases of Common Stock | $ (45,000) | ||||
| Balance, ending (in shares) at Jun. 29, 2024 | 55,673,753 | 55,674,000 | |||
| Balance, ending at Jun. 29, 2024 | $ 367,151 | $ 0 | 297,518 | 164,569 | (94,936) |
| Balance, beginning (in shares) at Mar. 30, 2024 | 55,692,000 | ||||
| Balance, beginning at Mar. 30, 2024 | 387,193 | $ 0 | 284,301 | 171,124 | (68,232) |
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
| Net income | 51,769 | 51,769 | |||
| Stock-based compensation, net (in shares) | 327,000 | ||||
| Stock-based compensation, net | 7,947 | 13,383 | (5,436) | ||
| Other comprehensive income (loss) | (26,704) | (26,704) | |||
| Dividends on Common Stock | (27,888) | (27,888) | |||
| Repurchases of Common Stock (in shares) | (345,000) | ||||
| Repurchases of Common Stock | $ (25,166) | (166) | (25,000) | ||
| Balance, ending (in shares) at Jun. 29, 2024 | 55,673,753 | 55,674,000 | |||
| Balance, ending at Jun. 29, 2024 | $ 367,151 | $ 0 | $ 297,518 | $ 164,569 | $ (94,936) |
Consolidated Statements of Eq_2
| Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
| Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | |
| Statement of Stockholders' Equity [Abstract] | ||||
| Dividends on Common Stock (in USD per share) | $ 0.50 | $ 0.50 | $ 0.48 | $ 0.48 |
BASIS OF PRESENTATION
| BASIS OF PRESENTATION | 6 Months Ended |
| Jun. 29, 2024 | |
| Accounting Policies [Abstract] | |
| BASIS OF PRESENTATION | BASIS OF PRESENTATION Description of Business Kontoor Brands, Inc. ("Kontoor," the "Company," "we," "us" or "our") is a global lifestyle apparel company headquartered in the United States ("U.S."). The Company designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the brand names Wrangler ® and Lee ® . The Company's products are sold in the U.S. through mass merchants, specialty stores, department stores, company-operated stores and online, including digital marketplaces. The Company's products are also sold internationally, primarily in the Europe, Asia-Pacific and Non-U.S. Americas regions, through department, specialty, company-operated, concession retail and independently-operated partnership stores and online, including digital marketplaces. Fiscal Year The Company operates and reports using a 52/53-week fiscal year ending on the Saturday closest to December 31 of each year. Accordingly, this Form 10-Q presents the second quarter of the Company's fiscal year ending December 28, 2024 ("fiscal 2024"), which is a 52-week fiscal year. For presentation purposes herein, all references to periods ended June 2024, December 2023 and June 2023 correspond to the fiscal periods ended June 29, 2024, December 30, 2023 and July 1, 2023, respectively. Macroeconomic Environment and Other Recent Developments Global macroeconomic conditions that continued to impact the Company include elevated interest rates, inflation, recessionary concerns, fluctuating foreign currency exchange rates, supply chain issues and inconsistent consumer demand, particularly in China. These factors continue to contribute to uncertain global economic conditions and consumer spending patterns, which are impacting retailers' and the Company's operations. Additionally, the conflicts in Ukraine and the Middle East are causing disruption in the surrounding areas and greater uncertainty in the global economy. The Company considered the impact of these developments on the assumptions and estimates used when preparing these quarterly financial statements including, but not limited to, our allowance for doubtful accounts, inventory valuations, liabilities for variable consideration, deferred tax valuation allowances, fair value measurements including asset impairment evaluations, the effectiveness of the Company’s hedging instruments and expected compliance with all applicable financial covenants in our Credit Agreement (as defined in Note 7 Basis of Presentation - Interim Financial Statements The accompanying unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the U.S. ("GAAP") for complete financial statements. In the opinion of management, the accompanying financial statements contain all normal and recurring adjustments necessary to fairly state the financial position, results of operations and cash flows of the Company for the interim periods presented. Operating results for the three and six months ended June 2024 are not necessarily indicative of results that may be expected for any other interim period or for fiscal 2024. The unaudited financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's 2023 Annual Report on Form 10-K for the fiscal year ended December 30, 2023, as filed with the Securities and Exchange Commission on February 28, 2024 ("2023 Annual Report on Form 10-K"). Recently Adopted Accounting Standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, "Disclosure of Supplier Finance Program Obligations," which requires entities that provide supplier finance programs in connection with the purchase of goods and services to disclose key terms of the programs, outstanding confirmed amounts as of period end, a description of where those obligations are presented in the balance sheets and an annual rollforward of obligations. This guidance was adopted by the Company during the first quarter of 2023, except for the requirement to include an annual rollforward of obligations which is effective beginning in 2024 and will be disclosed in our 2024 annual report on Form 10-K. Refer to Note 6 Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which requires enhanced disclosures about significant segment expenses. This guidance is effective for annual disclosures in fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This guidance requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which requires disclosure of specific categories and greater disaggregation within the income tax rate reconciliation, and disclosure of disaggregated income taxes paid. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements and disclosures. |
REVENUES
| REVENUES | 6 Months Ended |
| Jun. 29, 2024 | |
| Revenue from Contract with Customer [Abstract] | |
| REVENUES | REVENUES Disaggregation of Revenue The following tables present revenues disaggregated by channel and geography. Revenues from licensing arrangements are included within the U.S. or Non-U.S. Wholesale channels, based on the respective region where the licensee sells the product. Direct-to-Consumer revenues include sales from company-operated Wrangler ® and Lee ® branded full-price and outlet stores, online and international concession arrangements. Other includes sales and licensing of Rock & Republic ® , other company-owned brands and private label apparel. Three Months Ended June 2024 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 353,376 $ 96,613 $ 2,162 $ 452,151 Non-U.S. Wholesale 40,294 41,662 — 81,956 Direct-to-Consumer 35,575 37,024 192 72,791 Total $ 429,245 $ 175,299 $ 2,354 $ 606,898 Geographic revenues U.S. $ 382,977 $ 110,899 $ 2,354 $ 496,230 International 46,268 64,400 — 110,668 Total $ 429,245 $ 175,299 $ 2,354 $ 606,898 Three Months Ended June 2023 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 355,207 $ 98,218 $ 2,366 $ 455,791 Non-U.S. Wholesale 38,104 51,232 — 89,336 Direct-to-Consumer 32,174 38,558 150 70,882 Total $ 425,485 $ 188,008 $ 2,516 $ 616,009 Geographic revenues U.S. $ 382,111 $ 114,248 $ 2,516 $ 498,875 International 43,374 73,760 — 117,134 Total $ 425,485 $ 188,008 $ 2,516 $ 616,009 Six Months Ended June 2024 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 682,101 $ 215,760 $ 4,254 $ 902,115 Non-U.S. Wholesale 84,732 105,280 — 190,012 Direct-to-Consumer 71,906 73,702 365 145,973 Total $ 838,739 $ 394,742 $ 4,619 $ 1,238,100 Geographic revenues U.S. $ 740,440 $ 243,182 $ 4,619 $ 988,241 International 98,299 151,560 — 249,859 Total $ 838,739 $ 394,742 $ 4,619 $ 1,238,100 Six Months Ended June 2023 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 692,883 $ 233,517 $ 5,594 $ 931,994 Non-U.S. Wholesale 90,023 117,237 10 207,270 Direct-to-Consumer 65,726 77,903 239 143,868 Total $ 848,632 $ 428,657 $ 5,843 $ 1,283,132 Geographic revenues U.S. $ 747,240 $ 263,938 $ 5,833 $ 1,017,011 International 101,392 164,719 10 266,121 Total $ 848,632 $ 428,657 $ 5,843 $ 1,283,132 Contract Balances and Performance Obligations The following table presents information about contract balances recorded in the Company's balance sheets: (In thousands) June 2024 December 2023 June 2023 Accounts receivable, net $ 205,019 $ 217,673 $ 186,024 Contract assets (a) 7,772 10,929 6,034 Contract liabilities (b) 2,426 1,713 1,921 (a) Included within "prepaid expenses and other current assets" in the Company's balance sheets. (b) Included within "accrued and other current liabilities" in the Company's balance sheets. For the three and six months ended June 2024 and June 2023, no significant revenue was recognized that was included in contract liabilities as of December 2023 and December 2022, respectively. For the three and six months ended June 2024, no significant revenue was recognized from performance obligations satisfied, or partially satisfied, in prior periods. As of June 2024, the Company has contractual rights under its licensing agreements to receive $84.9 million of fixed consideration related to the future minimum guarantees through December 2029. |
BUSINESS SEGMENT INFORMATION
| BUSINESS SEGMENT INFORMATION | 6 Months Ended |
| Jun. 29, 2024 | |
| Segment Reporting [Abstract] | |
| BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION The Company has two reportable segments: • Wrangler — Wrangler ® branded denim, apparel, footwear and accessories. • Lee — Lee ® branded denim, apparel, footwear and accessories. The Company considers its chief executive officer to be its chief operating decision maker. The chief operating decision maker allocates resources and assesses performance based on the global brand operating results of Wrangler ® and Lee ® , which are the Company's operating and reportable segments. In addition, we report an "Other" category to reconcile segment revenues and segment profit to the Company's operating results, but the Other category does not meet the criteria to be considered a reportable segment. Other includes sales and licensing of Rock & Republic ® , other company-owned brands and private label apparel. Accounting policies utilized for internal management reporting at the individual segments are consistent with those disclosed in the Company's 2023 Annual Report on Form 10-K. Corporate and other expenses, including certain restructuring and transformation costs, and interest income and expense are not controlled by segment management and therefore are excluded from the measurement of segment profit. The following table presents financial information for the Company's reportable segments and income before income taxes: Three Months Ended June Six Months Ended June (In thousands) 2024 2023 2024 2023 Segment revenues: Wrangler $ 429,245 $ 425,485 $ 838,739 $ 848,632 Lee 175,299 188,008 394,742 428,657 Total reportable segment revenues 604,544 613,493 1,233,481 1,277,289 Other revenues 2,354 2,516 4,619 5,843 Total net revenues $ 606,898 $ 616,009 $ 1,238,100 $ 1,283,132 Segment profit: Wrangler $ 88,339 $ 70,976 $ 163,005 $ 142,083 Lee 13,367 17,165 48,461 56,738 Total reportable segment profit $ 101,706 $ 88,141 $ 211,466 $ 198,821 Corporate and other expenses (28,378) (27,660) (56,438) (45,724) Interest expense (10,382) (9,663) (19,674) (19,936) Interest income 2,616 691 5,041 1,110 Loss related to other revenues (1,106) (236) (1,259) (129) Income before income taxes $ 64,456 $ 51,273 $ 139,136 $ 134,142 |
ACCOUNTS RECEIVABLE
| ACCOUNTS RECEIVABLE | 6 Months Ended |
| Jun. 29, 2024 | |
| Receivables [Abstract] | |
| ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Allowance for Doubtful Accounts The following table presents a rollforward of the allowance for doubtful accounts: Six Months Ended June (In thousands) 2024 2023 Balance, December $ 7,215 $ 9,918 Increase (decrease) in provision for expected credit losses 828 (278) Accounts receivable balances written off (298) (1,107) Other (1) (117) 263 Balance, June $ 7,628 $ 8,796 (1) Other primarily includes the impact of foreign currency translation and recoveries of amounts previously written off, none of which were individually significant. Sale of Trade Accounts Receivable The Company is party to an agreement with a financial institution to sell selected trade accounts receivable on a nonrecourse basis. Under this agreement, up to $377.5 million of the Company’s trade accounts receivable may be sold to the financial institution and remain outstanding at any point in time. The Company removes the sold balances from "accounts receivable, net" in its balance sheet at the time of sale. The Company does not retain any interests in the sold trade accounts receivable but continues to service and collect outstanding trade accounts receivable on behalf of the financial institution. During the six months ended June 2024 and June 2023, the Company sold total trade accounts receivable of $647.5 million and $704.2 million, respectively. As of June 2024, December 2023 and June 2023, $179.6 million, $197.7 million and $211.5 million, respectively, of the sold trade accounts receivable had been removed from the Company's balance sheets but remained outstanding with the financial institution. The funding fees charged by the financial institution for this program are reflected in the Company's statements of operations within "other expense, net" and were $2.9 million and $5.8 million for the three and six months ended June 2024, respectively, |
INVENTORIES
| INVENTORIES | 6 Months Ended |
| Jun. 29, 2024 | |
| Inventory Disclosure [Abstract] | |
| INVENTORIES | INVENTORIES The following table presents components of "inventories" recorded in the Company's balance sheets: (In thousands) June 2024 December 2023 June 2023 Finished products $ 417,217 $ 421,051 $ 548,967 Work-in-process 32,667 35,722 33,502 Raw materials 38,456 43,580 44,416 Total inventories $ 488,340 $ 500,353 $ 626,885 |
Supply Chain Financing
| Supply Chain Financing | 6 Months Ended |
| Jun. 29, 2024 | |
| Supply Chain Financing [Abstract] | |
| Supply Chain Financing | SUPPLY CHAIN FINANCING The Company facilitates voluntary Supply Chain Finance ("SCF") programs with its financial institutions that allow certain suppliers the option to sell or assign their rights to receivables due from the Company, enabling the suppliers to receive payment from the financial institutions sooner than our negotiated payment terms. At June 2024, December 2023 and June 2023, accounts payable included total outstanding balances of $32.7 million, $19.7 million and $30.6 million, respectively, due to suppliers that participate in the SCF programs. |
SHORT-TERM BORROWINGS AND LONG-
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT | 6 Months Ended |
| Jun. 29, 2024 | |
| Debt Disclosure [Abstract] | |
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT | SHORT-TERM BORROWINGS AND LONG-TERM DEBT Short-term Borrowings At June 2024, December 2023 and June 2023, the Company had $19.3 million, $24.1 million and $23.9 million, respectively, of international lines of credit with various banks, which are uncommitted and may be terminated at any time by either the Company or the banks. There were no outstanding balances under these arrangements at June 2024, December 2023 and June 2023. In addition, short-term borrowings included other debt of $0.1 million at June 2023, with no balance remaining at June 2024 and December 2023. Long-term Debt The following table presents the components of "long-term debt" as recorded in the Company's balance sheets: (In thousands) June 2024 December 2023 June 2023 Revolving Credit Facility $ — $ — $ — Term Loan A 353,827 388,481 393,218 4.125% Notes, due 2029 395,827 395,440 395,052 Total long-term debt 749,654 783,921 788,270 Less: current portion — (20,000) (15,000) Long-term debt, due beyond one year $ 749,654 $ 763,921 $ 773,270 Credit Facilities The Company is party to a senior secured Credit Agreement, as amended and restated on November 18, 2021 (the “Credit Agreement”), which provides for (i) a five-year $400.0 million term loan A facility (“Term Loan A”) and (ii) a five-year $500.0 million revolving credit facility (the “Revolving Credit Facility”), collectively referred to as “Credit Facilities,” with the lenders and agents party thereto. Term Loan A requires quarterly repayments of $5.0 million through September 2026, and the remaining principal of $335.0 million is due at maturity in November 2026. During the six months ended June 2024, the Company repaid a total of $35.0 million of the principal outstanding on Term Loan A, including $25.0 million of voluntary early quarterly repayments during the second quarter of 2024. Term Loan A had an outstanding principal amount of $355.0 million, $390.0 million and $395.0 million at June 2024, December 2023 and June 2023, respectively, which is reported net of unamortized deferred financing costs. As of June 2024, interest expense on Term Loan A was being recorded at an effective annual interest rate of 7.1%, including the amortization of deferred financing costs. The Revolving Credit Facility may be used to borrow funds in both U.S. dollar and certain non-U.S. dollar currencies, and has a $75.0 million letter of credit sublimit. As of June 2024, the Company had no outstanding borrowings under the Revolving Credit Facility and $6.5 million of outstanding standby letters of credit issued on behalf of the Company, leaving $493.5 million available for borrowing against this facility. The interest rate per annum applicable to borrowings under the Credit Facilities is an interest rate benchmark elected by the Company based on the currency and term of the borrowing plus an applicable margin, as defined therein. The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type as well as customary events of default. In addition, the Credit Agreement contains financial covenants which require compliance with (i) a total leverage ratio not to exceed 4.50 to 1.00 as of the last day of any test period, with an allowance for up to two elections to increase the limit to 5.00 to 1.00 in connection with certain material acquisitions, and (ii) a consolidated interest coverage ratio as of the last day of any test period to be no less than 3.00 to 1.00. As of June 2024, the Company was in compliance with all covenants and expects to maintain compliance with the applicable covenants for at least one year from the issuance of these financial statements. Senior Notes On November 18, 2021, the Company entered into an indenture (the “Indenture”) by and among the Company and certain subsidiaries of the Company named as guarantors therein (the “Guarantors”), pursuant to which it issued $400.0 million of unsecured senior notes due November 2029 (the “Notes”) through a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. The Notes bear interest at a fixed rate of 4.125% per annum, payable in cash in arrears on May 15 and November 15 of each year. The Notes had an outstanding principal amount of $400.0 million at June 2024, December 2023 and June 2023, which is reported net of unamortized deferred financing costs. As of June 2024, interest expense on the Notes was being recorded at an effective annual interest rate of 4.3%, including the amortization of deferred financing costs. The Notes are guaranteed on a senior unsecured basis by the Company’s existing and future domestic subsidiaries (other than certain excluded subsidiaries) that are borrowers under or guarantors of the Credit Facilities or certain other indebtedness. The Indenture governing the Notes contains customary negative covenants for financings of this type. The Indenture does not contain any financial covenants. As of June 2024, the Company was in compliance with the Indenture and expects to maintain compliance with the applicable non-financial covenants for at least one year from the issuance of these financial statements. |
FAIR VALUE MEASUREMENTS
| FAIR VALUE MEASUREMENTS | 6 Months Ended |
| Jun. 29, 2024 | |
| Fair Value Disclosures [Abstract] | |
| FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Certain assets and liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. Categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company's own data and judgments about assumptions that market participants would use in pricing the asset or liability. Recurring Fair Value Measurements The following tables present financial assets and financial liabilities that are measured and recorded in the Company's financial statements at fair value on a recurring basis: Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 June 2024 Financial assets: Cash equivalents: Money market funds $ 166,613 $ 166,613 $ — $ — Time deposits 2,280 2,280 — — Foreign currency exchange contracts 5,750 — 5,750 — Investment securities 48,711 48,711 — — Financial liabilities: Foreign currency exchange contracts 4,786 — 4,786 — Deferred compensation 51,933 — 51,933 — Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 December 2023 Financial assets: Cash equivalents: Money market funds $ 145,554 $ 145,554 $ — $ — Time deposits 2,283 2,283 — — Foreign currency exchange contracts 16,504 — 16,504 — Interest rate swap agreements 3,253 — 3,253 — Investment securities 46,250 46,250 — — Financial liabilities: Foreign currency exchange contracts 5,121 — 5,121 — Deferred compensation 49,139 — 49,139 — The Company's cash equivalents include money market funds and short-term time deposits that approximate fair value based on Level 1 measurements. The fair value of derivative financial instruments, which consist of foreign currency exchange contracts and, at December 2023, interest rate swap agreements, is determined based on observable market inputs (Level 2), including spot and forward exchange rates for foreign currencies and observable interest rate yield curves for interest rate swap agreements. Investment securities are held in the Company's deferred compensation plans as an economic hedge of the related deferred compensation liabilities and are comprised of mutual funds that are valued based on quoted prices in active markets (Level 1). Liabilities related to the Company's deferred compensation plans are recorded at amounts due to participants, based on the fair value of the participants’ selection of hypothetical investments (Level 2). Additionally, at June 2024, the carrying value of the Company's long-term debt was $749.7 million compared to a fair value of $711.2 million. At December 2023, the carrying value of the Company's long-term debt was $783.9 million compared to a fair value of $747.1 million. The fair value of long-term debt is a Level 2 estimate based on quoted market prices or values of comparable borrowings. All other financial assets and financial liabilities are recorded in the Company's financial statements at cost. These other financial assets and financial liabilities include cash held as demand deposits, accounts receivable, short-term borrowings, accounts payable and accrued liabilities. At June 2024 and December 2023, their carrying values approximated fair value due to the short-term nature of these instruments. |
DERIVATIVE FINANCIAL INSTRUMENT
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
| Jun. 29, 2024 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Summary of Derivative Financial Instruments The Company enters into derivative contracts with external counterparties to hedge certain foreign currency transactions. The notional amount of all outstanding foreign currency exchange contracts was $340.1 million at June 2024, $348.8 million at December 2023 and $333.0 million at June 2023, consisting primarily of contracts hedging exposures to the euro, Mexican peso, Canadian dollar, British pound, Polish zloty and Swedish krona. Foreign currency exchange contracts have maturities up to 20 months. During 2019, the Company entered into "floating to fixed" interest rate swap agreements to mitigate exposure to volatility in reference rates on the Company's future interest payments. Because these interest rate swap agreements met the criteria for hedge accounting, all related gains and losses were deferred within accumulated other comprehensive loss ("AOCL") and were amortized through the expiration date of April 18, 2024. The notional amount of the interest rate swap agreements was $300.0 million at December 2023 and June 2023. The Company's outstanding derivative financial instruments met the criteria for hedge accounting at the inception of the hedging relationship. At each reporting period, the Company assesses whether the hedging relationships continue to be highly effective in offsetting changes in cash flows of hedged items. If the Company determines that a specific hedging relationship has ceased to be highly effective, it discontinues hedge accounting. All designated hedging relationships were determined to be highly effective as of June 2024. The following table presents the fair value of outstanding derivatives on an individual contract basis: Fair Value of Derivatives Fair Value of Derivatives June December June June December June (In thousands) 2024 2023 2023 2024 2023 2023 Derivatives designated as hedging instruments: Foreign currency exchange contracts $ 5,735 $ 16,490 $ 23,358 $ (4,757) $ (5,098) $ (4,629) Interest rate swap agreements — 3,253 8,529 — — — Derivatives not designated as hedging instruments: Foreign currency exchange contracts 15 14 24 (29) (23) (336) Total derivatives $ 5,750 $ 19,757 $ 31,911 $ (4,786) $ (5,121) $ (4,965) The Company records and presents the fair value of all derivative assets and liabilities in the Company's balance sheets on a gross basis, even though certain derivative contracts are subject to master netting agreements. If the Company were to offset and record the asset and liability balances of its derivative contracts on a net basis in accordance with the terms of its master netting agreements, the amounts presented in the Company's balance sheets would be adjusted from the current gross presentation to the net amounts. The following table presents a reconciliation of gross to net amounts for derivative asset and liability balances: June 2024 December 2023 June 2023 (In thousands) Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the balance sheet $ 5,750 $ (4,786) $ 19,757 $ (5,121) $ 31,911 $ (4,965) Gross amounts not offset in the balance sheet (2,983) 2,983 (894) 894 (2,038) 2,038 Net amounts $ 2,767 $ (1,803) $ 18,863 $ (4,227) $ 29,873 $ (2,927) The following table presents the location of derivatives in the Company's balance sheets, with current or noncurrent classification based on maturity dates: (In thousands) June 2024 December 2023 June 2023 Prepaid expenses and other current assets $ 5,322 $ 18,319 $ 29,167 Accrued and other current liabilities (2,950) (4,009) (4,497) Other assets 428 1,438 2,744 Other liabilities (1,836) (1,112) (468) Cash Flow Hedges The following tables present the pre-tax effects of cash flow hedges included in the Company's statements of operations and statements of comprehensive income: Gain (Loss) on Derivatives Recognized in AOCL (In thousands) Three Months Ended June Six Months Ended June Cash Flow Hedging Relationships 2024 2023 2024 2023 Foreign currency exchange contracts $ (11,334) $ 7,792 $ (1,188) $ 18,129 Interest rate swap agreements (27) 2,017 47 1,708 Total $ (11,361) $ 9,809 $ (1,141) $ 19,837 Gain (Loss) Reclassified from AOCL into Income (In thousands) Three Months Ended June Six Months Ended June Location of Gain (Loss) 2024 2023 2024 2023 Net revenues $ (1,215) $ (62) $ (1,162) $ (233) Cost of goods sold 6,290 4,256 11,581 10,248 Other expense, net 85 136 167 296 Interest expense 569 2,435 3,300 4,536 Total $ 5,729 $ 6,765 $ 13,886 $ 14,847 Other Derivative Information Any contracts that are not designated as hedges are recorded at fair value in the Company's balance sheets. Changes in the fair values of derivative contracts not designated as hedges are recognized directly in earnings. There were no significant amounts recognized in earnings for changes in the fair values of derivative contracts not designated as hedges or the ineffective portion of any hedging relationships during the three and six months ended June 2024 and June 2023. At June 2024, AOCL included $7.4 million of pre-tax net deferred gains for foreign currency exchange contracts and interest rate swap agreements that are expected to be reclassified to earnings during the next 12 months. The amounts ultimately reclassified to earnings will depend on rates in effect when outstanding derivative contracts are settled. |
CAPITAL AND ACCUMULATED OTHER C
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
| Jun. 29, 2024 | |
| Equity [Abstract] | |
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS | CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS Common Stock During the six months ended June 2024, the Company repurchased 0.7 million shares of Common Stock for $45.0 million, including commissions, under its $300.0 million share repurchase program authorized by the Company's Board of Directors. All shares reacquired in connection with the repurchase program are treated as authorized and unissued shares upon repurchase. Accumulated Other Comprehensive Loss The following table presents deferred components of AOCL in equity, net of related taxes: (In thousands) June 2024 December 2023 June 2023 Foreign currency translation $ (102,726) $ (91,057) $ (94,610) Defined benefit pension plans 2,773 2,913 2,173 Derivative financial instruments 5,017 20,293 32,344 Accumulated other comprehensive loss $ (94,936) $ (67,851) $ (60,093) The following tables present changes in AOCL, net of related tax impact: Three Months Ended June 2024 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2024 $ (93,580) $ 2,831 $ 22,517 $ (68,232) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (9,146) — (11,861) (21,007) Reclassifications to net income of previously deferred (gains) losses — (58) (5,639) (5,697) Net other comprehensive income (loss) (9,146) (58) (17,500) (26,704) Balance, June 2024 $ (102,726) $ 2,773 $ 5,017 $ (94,936) Three Months Ended June 2023 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2023 $ (99,139) $ 2,208 $ 28,926 $ (68,005) Other comprehensive income (loss) due to gains (losses) arising before reclassifications 4,529 — 9,442 13,971 Reclassifications to net income of previously deferred (gains) losses — (35) (6,024) (6,059) Net other comprehensive income (loss) 4,529 (35) 3,418 7,912 Balance, June 2023 $ (94,610) $ 2,173 $ 32,344 $ (60,093) Six Months Ended June 2024 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2023 $ (91,057) $ 2,913 $ 20,293 $ (67,851) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (11,669) — (2,173) (13,842) Reclassifications to net income of previously deferred (gains) losses — (140) (13,103) (13,243) Net other comprehensive income (loss) (11,669) (140) (15,276) (27,085) Balance, June 2024 $ (102,726) $ 2,773 $ 5,017 $ (94,936) Six Months Ended June 2023 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2022 $ (107,462) $ 2,243 $ 25,554 $ (79,665) Other comprehensive income (loss) due to gains (losses) arising before reclassifications 12,852 — 19,734 32,586 Reclassifications to net income of previously deferred (gains) losses — (70) (12,944) (13,014) Net other comprehensive income (loss) 12,852 (70) 6,790 19,572 Balance, June 2023 $ (94,610) $ 2,173 $ 32,344 $ (60,093) The following table presents reclassifications out of AOCL: (In thousands) Three Months Ended June Six Months Ended June Details About Accumulated Other Comprehensive Loss Reclassifications Affected Line Item in the Financial Statements 2024 2023 2024 2023 Defined benefit pension plans: Net change in deferred gains (losses) during the period Selling, general and administrative expenses $ 92 $ 47 $ 185 $ 93 Total before tax 92 47 185 93 Income taxes Income taxes (34) (12) (45) (23) Net of tax 58 35 140 70 Gains (losses) on derivative financial instruments: Foreign currency exchange contracts Net revenues $ (1,215) $ (62) $ (1,162) $ (233) Foreign currency exchange contracts Cost of goods sold 6,290 4,256 11,581 10,248 Foreign currency exchange contracts Other expense, net 85 136 167 296 Interest rate swap agreements Interest expense 569 2,435 3,300 4,536 Total before tax 5,729 6,765 13,886 14,847 Income taxes Income taxes (90) (741) (783) (1,903) Net of tax 5,639 6,024 13,103 12,944 Total reclassifications for the period, net of tax $ 5,697 $ 6,059 $ 13,243 $ 13,014 |
STOCK-BASED COMPENSATION
| STOCK-BASED COMPENSATION | 6 Months Ended |
| Jun. 29, 2024 | |
| Share-Based Payment Arrangement [Abstract] | |
| STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION On April 1, 2024, the Company made its annual grant of equity awards under the Kontoor Brands, Inc. 2019 Stock Compensation Plan, including approximately 200,000 shares of performance-based restricted stock units ("PRSUs”) to employees, approximately 150,000 shares of time-based restricted stock units ("RSUs") to employees, and approximately 20,000 shares of RSUs to nonemployee members of the Board of Directors. The fair market value of Kontoor Common Stock at the date the awards were granted was $60.35 per share and was used to value the RSUs and Director RSUs. Each PRSU entitles the employee to receive a potential final payout ranging from zero to two shares of Kontoor Common Stock at the end of a three-year performance period. The number of shares earned by participants, if any, is based on achievement of performance goals set by the Talent and Compensation Committee of the Board of Directors. The actual number of shares earned may also be adjusted upward or downward by up to 25% of the target award, subject to a 0% floor, based on how Kontoor’s total shareholder return (“TSR”) over a three-year period compares to the TSR for companies included in a Company-selected peer group. Shares earned related to the 2024 grants will be issued to participants following the conclusion of the three-year performance period. Each employee RSU entitles the holder to one share of Kontoor Common Stock and typically vests over a three-year period. Each RSU granted to a nonemployee member of the Board of Directors vests upon grant and will be settled in one share of Kontoor Common Stock one year from the date of grant. |
INCOME TAXES
| INCOME TAXES | 6 Months Ended |
| Jun. 29, 2024 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES The effective income tax rate for the six months ended June 2024 was 20.0% compared to 23.4% in the 2023 period. The six months ended June 2024 included a net discrete tax benefit primarily related to stock-based compensation which decreased the effective income tax rate by 1.2%. The six months ended June 2023 included a net discrete tax expense primarily related to a remeasurement of deferred tax assets associated with a tax holiday granted from local income taxes in a foreign jurisdiction which increased the effective income tax rate by 3.9%. The effective tax rate without discrete items for the six months ended June 2024 was 21.2% compared to 19.5% in the 2023 period. This increase was primarily due to changes in our jurisdictional mix of earnings. During the six months ended June 2024, the amount of net unrecognized tax benefits and associated interest increased by $0.7 million to $14.3 million. Management believes that it is reasonably possible that the amount of unrecognized tax benefits may decrease by $2.2 million within the next 12 fiscal months due to expiration of statutes of limitations, which would reduce income tax expense. |
EARNINGS PER SHARE
| EARNINGS PER SHARE | 6 Months Ended |
| Jun. 29, 2024 | |
| Earnings Per Share [Abstract] | |
| EARNINGS PER SHARE | EARNINGS PER SHARE The calculations of basic and diluted earnings per share ("EPS") are based on net income divided by the basic weighted average number of common shares and diluted weighted average number of common shares outstanding, respectively. The following table presents the calculations of basic and diluted EPS: Three Months Ended June Six Months Ended June (In thousands, except per share amounts) 2024 2023 2024 2023 Net income $ 51,769 $ 36,396 $ 111,276 $ 102,692 Basic weighted average shares outstanding 55,810 56,089 55,772 55,868 Dilutive effect of stock-based awards 646 757 825 1,025 Diluted weighted average shares outstanding 56,456 56,846 56,597 56,893 Earnings per share: Basic earnings per share $ 0.93 $ 0.65 $ 2.00 $ 1.84 Diluted earnings per share $ 0.92 $ 0.64 $ 1.97 $ 1.80 For the three and six months ended June 2024 and June 2023, an immaterial number of shares were excluded from the dilutive earnings per share calculations because the effect of their inclusion would have been anti-dilutive. For the three and six months ended June 2024, a total of 0.8 million and 0.7 million shares of PRSUs, respectively, were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares. For both the three and six months ended June 2023, a total of 0.6 million shares of PRSUs were excluded from the calculations of diluted earnings per share as the units were not considered to be contingent outstanding shares. |
LEASES
| LEASES | 6 Months Ended |
| Jun. 29, 2024 | |
| Leases [Abstract] | |
| LEASES | LEASES The Company enters into operating leases for retail stores, operational facilities, vehicles and certain equipment, with terms expiring at various dates through 2033. Most leases have fixed rentals, with many of the real estate leases requiring additional payments for real estate taxes and occupancy-related costs. The following table presents supplemental cash flow and non-cash information related to operating leases: Six Months Ended June (In thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 15,769 $ 15,816 Right-of-use operating lease assets obtained in exchange for new operating leases - non-cash activity $ 4,962 $ 11,683 |
RESTRUCTURING
| RESTRUCTURING | 6 Months Ended |
| Jun. 29, 2024 | |
| Restructuring and Related Activities [Abstract] | |
| RESTRUCTURING | RESTRUCTURING During the three and six months ended June 2024, the Company incurred restructuring charges related to actions to streamline and transfer select production within our internal manufacturing network and other business optimization activities. Of the $3.3 million and $7.9 million of restructuring charges recognized during the three and six months ended June 2024, respectively, $0.1 million and $1.7 million were reflected within "selling, general and administrative expenses" and $3.2 million and $6.2 million were reflected within "cost of goods sold," respectively. Of the $7.8 million of restructuring charges recognized during the three and six months ended June 2023, $5.4 million were reflected within "selling, general and administrative expenses" and $2.4 million were reflected within "cost of goods sold." Of the $1.8 million total restructuring accrual reported in the Company's balance sheet at June 2024, $1.3 million is expected to be paid out within the next 12 months and was classified within "accrued and other current liabilities," and the remaining $0.5 million was classified within "other liabilities." All of the $0.8 million restructuring accrual reported in the Company's balance sheet at December 2023 was classified within "accrued and other current liabilities." The following table presents the components of restructuring charges: Three Months Ended June Six Months Ended June (In thousands) 2024 2023 2024 2023 Severance and employee-related benefits $ 2,004 $ 6,614 $ 3,985 $ 6,614 Asset impairments 433 — 601 — Inventory write-downs 219 — 1,902 — Other 648 1,182 1,427 1,182 Total restructuring charges $ 3,304 $ 7,796 $ 7,915 $ 7,796 The following table presents the restructuring costs by business segment: Three Months Ended June Six Months Ended June (In thousands) 2024 2023 2024 2023 Wrangler $ 2,882 $ 995 $ 6,131 $ 995 Lee — 187 40 187 Corporate and other 422 6,614 1,744 6,614 Total $ 3,304 $ 7,796 $ 7,915 $ 7,796 The following table presents activity in the restructuring accrual for the six-month period ended June 2024: (In thousands) Total Accrual at December 2023 $ 827 Charges 4,875 Cash payments (3,557) Adjustments to accruals (290) Currency translation (8) Balance, June 2024 $ 1,847 |
SUBSEQUENT EVENTS
| SUBSEQUENT EVENTS | 6 Months Ended |
| Jun. 29, 2024 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS | SUBSEQUENT EVENT On July 25, 2024, the Board of Directors declared a regular quarterly cash dividend of $0.50 per share of the Company's Common Stock. The cash dividend will be payable on September 20, 2024, to shareholders of record at the close of business on September 10, 2024. |
Pay vs Performance Disclosure
| Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
| Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Pay vs Performance Disclosure | ||||||
| Net income | $ 51,769 | $ 59,507 | $ 36,396 | $ 66,296 | $ 111,276 | $ 102,692 |
Insider Trading Arrangements
| Insider Trading Arrangements | 3 Months Ended |
| Jun. 29, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
| BASIS OF PRESENTATION (Policies) | 6 Months Ended |
| Jun. 29, 2024 | |
| Accounting Policies [Abstract] | |
| Fiscal Year | Fiscal Year |
| Basis of Presentation - Interim Financial Statements | Basis of Presentation - Interim Financial Statements The accompanying unaudited interim financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X and do not include all of the information and notes required by generally accepted accounting principles in the U.S. ("GAAP") for complete financial statements. In the opinion of management, the accompanying financial statements contain all normal and recurring adjustments necessary to fairly state the financial position, results of operations and cash flows of the Company for the interim periods presented. Operating results for the three and six months ended June 2024 are not necessarily indicative of results that may be expected for any other interim period or for fiscal 2024. The unaudited financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's 2023 Annual Report on Form 10-K for the fiscal year ended December 30, 2023, as filed with the Securities and Exchange Commission on February 28, 2024 ("2023 Annual Report on Form 10-K"). |
| Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, "Disclosure of Supplier Finance Program Obligations," which requires entities that provide supplier finance programs in connection with the purchase of goods and services to disclose key terms of the programs, outstanding confirmed amounts as of period end, a description of where those obligations are presented in the balance sheets and an annual rollforward of obligations. This guidance was adopted by the Company during the first quarter of 2023, except for the requirement to include an annual rollforward of obligations which is effective beginning in 2024 and will be disclosed in our 2024 annual report on Form 10-K. Refer to Note 6 Recently Issued Accounting Standards In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which requires enhanced disclosures about significant segment expenses. This guidance is effective for annual disclosures in fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This guidance requires retrospective application to all prior periods presented in the financial statements. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which requires disclosure of specific categories and greater disaggregation within the income tax rate reconciliation, and disclosure of disaggregated income taxes paid. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that adoption of this guidance will have on its financial statements and disclosures. |
| Fair Value Measurements | Certain assets and liabilities measured and reported at fair value are classified in a three-level hierarchy that prioritizes the inputs used in the valuation process. Categorization within the valuation hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The hierarchy is based on the observability and objectivity of the pricing inputs, as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data. • Level 3 — Prices or valuation techniques that require significant unobservable data inputs. These inputs would normally be the Company's own data and judgments about assumptions that market participants would use in pricing the asset or liability. |
REVENUES (Tables)
| REVENUES (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Revenue from Contract with Customer [Abstract] | |
| Disaggregation of Revenue | The following tables present revenues disaggregated by channel and geography. Revenues from licensing arrangements are included within the U.S. or Non-U.S. Wholesale channels, based on the respective region where the licensee sells the product. Direct-to-Consumer revenues include sales from company-operated Wrangler ® and Lee ® branded full-price and outlet stores, online and international concession arrangements. Other includes sales and licensing of Rock & Republic ® , other company-owned brands and private label apparel. Three Months Ended June 2024 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 353,376 $ 96,613 $ 2,162 $ 452,151 Non-U.S. Wholesale 40,294 41,662 — 81,956 Direct-to-Consumer 35,575 37,024 192 72,791 Total $ 429,245 $ 175,299 $ 2,354 $ 606,898 Geographic revenues U.S. $ 382,977 $ 110,899 $ 2,354 $ 496,230 International 46,268 64,400 — 110,668 Total $ 429,245 $ 175,299 $ 2,354 $ 606,898 Three Months Ended June 2023 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 355,207 $ 98,218 $ 2,366 $ 455,791 Non-U.S. Wholesale 38,104 51,232 — 89,336 Direct-to-Consumer 32,174 38,558 150 70,882 Total $ 425,485 $ 188,008 $ 2,516 $ 616,009 Geographic revenues U.S. $ 382,111 $ 114,248 $ 2,516 $ 498,875 International 43,374 73,760 — 117,134 Total $ 425,485 $ 188,008 $ 2,516 $ 616,009 Six Months Ended June 2024 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 682,101 $ 215,760 $ 4,254 $ 902,115 Non-U.S. Wholesale 84,732 105,280 — 190,012 Direct-to-Consumer 71,906 73,702 365 145,973 Total $ 838,739 $ 394,742 $ 4,619 $ 1,238,100 Geographic revenues U.S. $ 740,440 $ 243,182 $ 4,619 $ 988,241 International 98,299 151,560 — 249,859 Total $ 838,739 $ 394,742 $ 4,619 $ 1,238,100 Six Months Ended June 2023 (In thousands) Wrangler Lee Other Total Channel revenues U.S. Wholesale $ 692,883 $ 233,517 $ 5,594 $ 931,994 Non-U.S. Wholesale 90,023 117,237 10 207,270 Direct-to-Consumer 65,726 77,903 239 143,868 Total $ 848,632 $ 428,657 $ 5,843 $ 1,283,132 Geographic revenues U.S. $ 747,240 $ 263,938 $ 5,833 $ 1,017,011 International 101,392 164,719 10 266,121 Total $ 848,632 $ 428,657 $ 5,843 $ 1,283,132 |
| Contract Assets and Liabilities | The following table presents information about contract balances recorded in the Company's balance sheets: (In thousands) June 2024 December 2023 June 2023 Accounts receivable, net $ 205,019 $ 217,673 $ 186,024 Contract assets (a) 7,772 10,929 6,034 Contract liabilities (b) 2,426 1,713 1,921 (a) Included within "prepaid expenses and other current assets" in the Company's balance sheets. (b) Included within "accrued and other current liabilities" in the Company's balance sheets. |
BUSINESS SEGMENT INFORMATION (T
| BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Segment Reporting [Abstract] | |
| Financial Information for Reportable Segments | The following table presents financial information for the Company's reportable segments and income before income taxes: Three Months Ended June Six Months Ended June (In thousands) 2024 2023 2024 2023 Segment revenues: Wrangler $ 429,245 $ 425,485 $ 838,739 $ 848,632 Lee 175,299 188,008 394,742 428,657 Total reportable segment revenues 604,544 613,493 1,233,481 1,277,289 Other revenues 2,354 2,516 4,619 5,843 Total net revenues $ 606,898 $ 616,009 $ 1,238,100 $ 1,283,132 Segment profit: Wrangler $ 88,339 $ 70,976 $ 163,005 $ 142,083 Lee 13,367 17,165 48,461 56,738 Total reportable segment profit $ 101,706 $ 88,141 $ 211,466 $ 198,821 Corporate and other expenses (28,378) (27,660) (56,438) (45,724) Interest expense (10,382) (9,663) (19,674) (19,936) Interest income 2,616 691 5,041 1,110 Loss related to other revenues (1,106) (236) (1,259) (129) Income before income taxes $ 64,456 $ 51,273 $ 139,136 $ 134,142 |
ACCOUNTS RECEIVABLE (Tables)
| ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Receivables [Abstract] | |
| Rollforward of the Allowance for Doubtful Accounts | The following table presents a rollforward of the allowance for doubtful accounts: Six Months Ended June (In thousands) 2024 2023 Balance, December $ 7,215 $ 9,918 Increase (decrease) in provision for expected credit losses 828 (278) Accounts receivable balances written off (298) (1,107) Other (1) (117) 263 Balance, June $ 7,628 $ 8,796 (1) Other primarily includes the impact of foreign currency translation and recoveries of amounts previously written off, none of which were individually significant. |
INVENTORIES (Tables)
| INVENTORIES (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Inventory Disclosure [Abstract] | |
| Components of Inventories | The following table presents components of "inventories" recorded in the Company's balance sheets: (In thousands) June 2024 December 2023 June 2023 Finished products $ 417,217 $ 421,051 $ 548,967 Work-in-process 32,667 35,722 33,502 Raw materials 38,456 43,580 44,416 Total inventories $ 488,340 $ 500,353 $ 626,885 |
SHORT-TERM BORROWINGS AND LON_2
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Debt Disclosure [Abstract] | |
| Schedule of Long-term Debt Instruments | The following table presents the components of "long-term debt" as recorded in the Company's balance sheets: (In thousands) June 2024 December 2023 June 2023 Revolving Credit Facility $ — $ — $ — Term Loan A 353,827 388,481 393,218 4.125% Notes, due 2029 395,827 395,440 395,052 Total long-term debt 749,654 783,921 788,270 Less: current portion — (20,000) (15,000) Long-term debt, due beyond one year $ 749,654 $ 763,921 $ 773,270 |
FAIR VALUE MEASUREMENTS (Tables
| FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Fair Value Disclosures [Abstract] | |
| Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following tables present financial assets and financial liabilities that are measured and recorded in the Company's financial statements at fair value on a recurring basis: Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 June 2024 Financial assets: Cash equivalents: Money market funds $ 166,613 $ 166,613 $ — $ — Time deposits 2,280 2,280 — — Foreign currency exchange contracts 5,750 — 5,750 — Investment securities 48,711 48,711 — — Financial liabilities: Foreign currency exchange contracts 4,786 — 4,786 — Deferred compensation 51,933 — 51,933 — Fair Value Measurement Using (In thousands) Total Fair Value Level 1 Level 2 Level 3 December 2023 Financial assets: Cash equivalents: Money market funds $ 145,554 $ 145,554 $ — $ — Time deposits 2,283 2,283 — — Foreign currency exchange contracts 16,504 — 16,504 — Interest rate swap agreements 3,253 — 3,253 — Investment securities 46,250 46,250 — — Financial liabilities: Foreign currency exchange contracts 5,121 — 5,121 — Deferred compensation 49,139 — 49,139 — |
DERIVATIVE FINANCIAL INSTRUME_2
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Schedule of Derivative Instruments | The following table presents the fair value of outstanding derivatives on an individual contract basis: Fair Value of Derivatives Fair Value of Derivatives June December June June December June (In thousands) 2024 2023 2023 2024 2023 2023 Derivatives designated as hedging instruments: Foreign currency exchange contracts $ 5,735 $ 16,490 $ 23,358 $ (4,757) $ (5,098) $ (4,629) Interest rate swap agreements — 3,253 8,529 — — — Derivatives not designated as hedging instruments: Foreign currency exchange contracts 15 14 24 (29) (23) (336) Total derivatives $ 5,750 $ 19,757 $ 31,911 $ (4,786) $ (5,121) $ (4,965) The following table presents a reconciliation of gross to net amounts for derivative asset and liability balances: June 2024 December 2023 June 2023 (In thousands) Derivative Asset Derivative Liability Derivative Asset Derivative Liability Derivative Asset Derivative Liability Gross amounts presented in the balance sheet $ 5,750 $ (4,786) $ 19,757 $ (5,121) $ 31,911 $ (4,965) Gross amounts not offset in the balance sheet (2,983) 2,983 (894) 894 (2,038) 2,038 Net amounts $ 2,767 $ (1,803) $ 18,863 $ (4,227) $ 29,873 $ (2,927) The following table presents the location of derivatives in the Company's balance sheets, with current or noncurrent classification based on maturity dates: (In thousands) June 2024 December 2023 June 2023 Prepaid expenses and other current assets $ 5,322 $ 18,319 $ 29,167 Accrued and other current liabilities (2,950) (4,009) (4,497) Other assets 428 1,438 2,744 Other liabilities (1,836) (1,112) (468) |
| Pre-Tax Effects of Cash Flow Hedges Included in the Statement of Operations and Statements of Comprehensive Income (Loss) | The following tables present the pre-tax effects of cash flow hedges included in the Company's statements of operations and statements of comprehensive income: Gain (Loss) on Derivatives Recognized in AOCL (In thousands) Three Months Ended June Six Months Ended June Cash Flow Hedging Relationships 2024 2023 2024 2023 Foreign currency exchange contracts $ (11,334) $ 7,792 $ (1,188) $ 18,129 Interest rate swap agreements (27) 2,017 47 1,708 Total $ (11,361) $ 9,809 $ (1,141) $ 19,837 Gain (Loss) Reclassified from AOCL into Income (In thousands) Three Months Ended June Six Months Ended June Location of Gain (Loss) 2024 2023 2024 2023 Net revenues $ (1,215) $ (62) $ (1,162) $ (233) Cost of goods sold 6,290 4,256 11,581 10,248 Other expense, net 85 136 167 296 Interest expense 569 2,435 3,300 4,536 Total $ 5,729 $ 6,765 $ 13,886 $ 14,847 |
CAPITAL AND ACCUMULATED OTHER_2
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Equity [Abstract] | |
| Deferred Components of AOCL in Equity, Net of Related Taxes, and Changes in AOCL | The following table presents deferred components of AOCL in equity, net of related taxes: (In thousands) June 2024 December 2023 June 2023 Foreign currency translation $ (102,726) $ (91,057) $ (94,610) Defined benefit pension plans 2,773 2,913 2,173 Derivative financial instruments 5,017 20,293 32,344 Accumulated other comprehensive loss $ (94,936) $ (67,851) $ (60,093) The following tables present changes in AOCL, net of related tax impact: Three Months Ended June 2024 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2024 $ (93,580) $ 2,831 $ 22,517 $ (68,232) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (9,146) — (11,861) (21,007) Reclassifications to net income of previously deferred (gains) losses — (58) (5,639) (5,697) Net other comprehensive income (loss) (9,146) (58) (17,500) (26,704) Balance, June 2024 $ (102,726) $ 2,773 $ 5,017 $ (94,936) Three Months Ended June 2023 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, March 2023 $ (99,139) $ 2,208 $ 28,926 $ (68,005) Other comprehensive income (loss) due to gains (losses) arising before reclassifications 4,529 — 9,442 13,971 Reclassifications to net income of previously deferred (gains) losses — (35) (6,024) (6,059) Net other comprehensive income (loss) 4,529 (35) 3,418 7,912 Balance, June 2023 $ (94,610) $ 2,173 $ 32,344 $ (60,093) Six Months Ended June 2024 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2023 $ (91,057) $ 2,913 $ 20,293 $ (67,851) Other comprehensive income (loss) due to gains (losses) arising before reclassifications (11,669) — (2,173) (13,842) Reclassifications to net income of previously deferred (gains) losses — (140) (13,103) (13,243) Net other comprehensive income (loss) (11,669) (140) (15,276) (27,085) Balance, June 2024 $ (102,726) $ 2,773 $ 5,017 $ (94,936) Six Months Ended June 2023 (In thousands) Foreign Currency Translation Defined Benefit Pension Plans Derivative Financial Instruments Total Balance, December 2022 $ (107,462) $ 2,243 $ 25,554 $ (79,665) Other comprehensive income (loss) due to gains (losses) arising before reclassifications 12,852 — 19,734 32,586 Reclassifications to net income of previously deferred (gains) losses — (70) (12,944) (13,014) Net other comprehensive income (loss) 12,852 (70) 6,790 19,572 Balance, June 2023 $ (94,610) $ 2,173 $ 32,344 $ (60,093) |
| Reclassification Out of AOCL | The following table presents reclassifications out of AOCL: (In thousands) Three Months Ended June Six Months Ended June Details About Accumulated Other Comprehensive Loss Reclassifications Affected Line Item in the Financial Statements 2024 2023 2024 2023 Defined benefit pension plans: Net change in deferred gains (losses) during the period Selling, general and administrative expenses $ 92 $ 47 $ 185 $ 93 Total before tax 92 47 185 93 Income taxes Income taxes (34) (12) (45) (23) Net of tax 58 35 140 70 Gains (losses) on derivative financial instruments: Foreign currency exchange contracts Net revenues $ (1,215) $ (62) $ (1,162) $ (233) Foreign currency exchange contracts Cost of goods sold 6,290 4,256 11,581 10,248 Foreign currency exchange contracts Other expense, net 85 136 167 296 Interest rate swap agreements Interest expense 569 2,435 3,300 4,536 Total before tax 5,729 6,765 13,886 14,847 Income taxes Income taxes (90) (741) (783) (1,903) Net of tax 5,639 6,024 13,103 12,944 Total reclassifications for the period, net of tax $ 5,697 $ 6,059 $ 13,243 $ 13,014 |
EARNINGS PER SHARE (Tables)
| EARNINGS PER SHARE (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Earnings Per Share [Abstract] | |
| Schedule of Earnings Per Share | The following table presents the calculations of basic and diluted EPS: Three Months Ended June Six Months Ended June (In thousands, except per share amounts) 2024 2023 2024 2023 Net income $ 51,769 $ 36,396 $ 111,276 $ 102,692 Basic weighted average shares outstanding 55,810 56,089 55,772 55,868 Dilutive effect of stock-based awards 646 757 825 1,025 Diluted weighted average shares outstanding 56,456 56,846 56,597 56,893 Earnings per share: Basic earnings per share $ 0.93 $ 0.65 $ 2.00 $ 1.84 Diluted earnings per share $ 0.92 $ 0.64 $ 1.97 $ 1.80 |
LEASES (Tables)
| LEASES (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Leases [Abstract] | |
| Supplemental Cash Flow and Non-Cash Information Related to Operating Leases | The following table presents supplemental cash flow and non-cash information related to operating leases: Six Months Ended June (In thousands) 2024 2023 Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 15,769 $ 15,816 Right-of-use operating lease assets obtained in exchange for new operating leases - non-cash activity $ 4,962 $ 11,683 |
RESTRUCTURING (Tables)
| RESTRUCTURING (Tables) | 6 Months Ended |
| Jun. 29, 2024 | |
| Restructuring and Related Activities [Abstract] | |
| Components of Restructuring Charges | The following table presents the components of restructuring charges: Three Months Ended June Six Months Ended June (In thousands) 2024 2023 2024 2023 Severance and employee-related benefits $ 2,004 $ 6,614 $ 3,985 $ 6,614 Asset impairments 433 — 601 — Inventory write-downs 219 — 1,902 — Other 648 1,182 1,427 1,182 Total restructuring charges $ 3,304 $ 7,796 $ 7,915 $ 7,796 The following table presents the restructuring costs by business segment: Three Months Ended June Six Months Ended June (In thousands) 2024 2023 2024 2023 Wrangler $ 2,882 $ 995 $ 6,131 $ 995 Lee — 187 40 187 Corporate and other 422 6,614 1,744 6,614 Total $ 3,304 $ 7,796 $ 7,915 $ 7,796 |
| Activity in Restructuring | The following table presents activity in the restructuring accrual for the six-month period ended June 2024: (In thousands) Total Accrual at December 2023 $ 827 Charges 4,875 Cash payments (3,557) Adjustments to accruals (290) Currency translation (8) Balance, June 2024 $ 1,847 |
REVENUES - Disaggregation of Re
| REVENUES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | $ 606,898 | $ 616,009 | $ 1,238,100 | $ 1,283,132 |
| U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 496,230 | 498,875 | 988,241 | 1,017,011 |
| International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 110,668 | 117,134 | 249,859 | 266,121 |
| Wholesale | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 452,151 | 455,791 | 902,115 | 931,994 |
| Wholesale | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 81,956 | 89,336 | 190,012 | 207,270 |
| Direct-to-Consumer | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 72,791 | 70,882 | 145,973 | 143,868 |
| Operating Segments | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 604,544 | 613,493 | 1,233,481 | 1,277,289 |
| Operating Segments | Wrangler | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 429,245 | 425,485 | 838,739 | 848,632 |
| Operating Segments | Wrangler | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 382,977 | 382,111 | 740,440 | 747,240 |
| Operating Segments | Wrangler | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 46,268 | 43,374 | 98,299 | 101,392 |
| Operating Segments | Wrangler | Wholesale | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 353,376 | 355,207 | 682,101 | 692,883 |
| Operating Segments | Wrangler | Wholesale | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 40,294 | 38,104 | 84,732 | 90,023 |
| Operating Segments | Wrangler | Direct-to-Consumer | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 35,575 | 32,174 | 71,906 | 65,726 |
| Operating Segments | Lee | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 175,299 | 188,008 | 394,742 | 428,657 |
| Operating Segments | Lee | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 110,899 | 114,248 | 243,182 | 263,938 |
| Operating Segments | Lee | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 64,400 | 73,760 | 151,560 | 164,719 |
| Operating Segments | Lee | Wholesale | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 96,613 | 98,218 | 215,760 | 233,517 |
| Operating Segments | Lee | Wholesale | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 41,662 | 51,232 | 105,280 | 117,237 |
| Operating Segments | Lee | Direct-to-Consumer | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 37,024 | 38,558 | 73,702 | 77,903 |
| Other | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 2,354 | 2,516 | 4,619 | 5,843 |
| Other | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 2,354 | 2,516 | 4,619 | 5,833 |
| Other | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 0 | 0 | 0 | 10 |
| Other | Wholesale | U.S. | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 2,162 | 2,366 | 4,254 | 5,594 |
| Other | Wholesale | International | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | 0 | 0 | 0 | 10 |
| Other | Direct-to-Consumer | ||||
| Disaggregation of Revenue [Line Items] | ||||
| Revenue | $ 192 | $ 150 | $ 365 | $ 239 |
REVENUES - Contract Assets and
| REVENUES - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Revenue from Contract with Customer [Abstract] | |||
| Accounts receivable, net | $ 205,019 | $ 217,673 | $ 186,024 |
| Contract assets | 7,772 | 10,929 | 6,034 |
| Contract liabilities | $ 2,426 | $ 1,713 | $ 1,921 |
REVENUES - Additional Informati
| REVENUES - Additional Information (Details) $ in Millions | Jun. 29, 2024 USD ($) |
| Revenue from Contract with Customer [Abstract] | |
| Remaining performance obligation | $ 84.9 |
BUSINESS SEGMENT INFORMATION -
| BUSINESS SEGMENT INFORMATION - Additional Information (Details) | 6 Months Ended |
| Jun. 29, 2024 segment | |
| Segment Reporting [Abstract] | |
| Number of reportable segments | 2 |
BUSINESS SEGMENT INFORMATION _2
| BUSINESS SEGMENT INFORMATION - Financial Information for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Segment Reporting Information [Line Items] | ||||
| Total net revenues | $ 606,898 | $ 616,009 | $ 1,238,100 | $ 1,283,132 |
| Total reportable segment profit | 75,243 | 63,397 | 159,673 | 158,346 |
| Interest expense | (10,382) | (9,663) | (19,674) | (19,936) |
| Interest income | 2,616 | 691 | 5,041 | 1,110 |
| Income before income taxes | 64,456 | 51,273 | 139,136 | 134,142 |
| Operating Segments | ||||
| Segment Reporting Information [Line Items] | ||||
| Total net revenues | 604,544 | 613,493 | 1,233,481 | 1,277,289 |
| Total reportable segment profit | 101,706 | 88,141 | 211,466 | 198,821 |
| Operating Segments | Wrangler | ||||
| Segment Reporting Information [Line Items] | ||||
| Total net revenues | 429,245 | 425,485 | 838,739 | 848,632 |
| Total reportable segment profit | 88,339 | 70,976 | 163,005 | 142,083 |
| Operating Segments | Lee | ||||
| Segment Reporting Information [Line Items] | ||||
| Total net revenues | 175,299 | 188,008 | 394,742 | 428,657 |
| Total reportable segment profit | 13,367 | 17,165 | 48,461 | 56,738 |
| Corporate and other expenses | ||||
| Segment Reporting Information [Line Items] | ||||
| Corporate and other expenses | (28,378) | (27,660) | (56,438) | (45,724) |
| Other | ||||
| Segment Reporting Information [Line Items] | ||||
| Total net revenues | 2,354 | 2,516 | 4,619 | 5,843 |
| Total reportable segment profit | $ (1,106) | $ (236) | $ (1,259) | $ (129) |
ACCOUNTS RECEIVABLE - Rollforwa
| ACCOUNTS RECEIVABLE - Rollforward of the Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 6 Months Ended | |
| Jun. 29, 2024 | Jul. 01, 2023 | |
| Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
| Beginning balance | $ 7,215 | $ 9,918 |
| Increase (decrease) in provision for expected credit losses | 828 | (278) |
| Accounts receivable balances written off | (298) | (1,107) |
| Other | (117) | 263 |
| Ending balance | $ 7,628 | $ 8,796 |
ACCOUNTS RECEIVABLE - Additiona
| ACCOUNTS RECEIVABLE - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
| Receivables [Abstract] | |||||
| Maximum amount of accounts receivable sold at any point in time (up to) | $ 377.5 | $ 377.5 | |||
| Sale of accounts receivable | 647.5 | $ 704.2 | |||
| Accounts receivable removed related to sale of accounts receivable | 179.6 | $ 211.5 | 179.6 | 211.5 | $ 197.7 |
| Funding fee | $ 2.9 | $ 3.1 | $ 5.8 | $ 6.1 | |
INVENTORIES (Details)
| INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Inventory Disclosure [Abstract] | |||
| Finished products | $ 417,217 | $ 421,051 | $ 548,967 |
| Work-in-process | 32,667 | 35,722 | 33,502 |
| Raw materials | 38,456 | 43,580 | 44,416 |
| Total inventories | $ 488,340 | $ 500,353 | $ 626,885 |
Supply Chain Financing (Details
| Supply Chain Financing (Details) - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Supply Chain Financing [Abstract] | |||
| Accounts payable, trade | $ 32.7 | $ 19.7 | $ 30.6 |
SHORT-TERM BORROWINGS AND LON_3
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Short-term Borrowings (Details) - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Short-term Debt [Line Items] | |||
| Short-term borrowings | $ 0 | $ 0 | $ 62,000 |
| Other short-term borrowings | 0 | 0 | 100,000 |
| International borrowing arrangements | |||
| Short-term Debt [Line Items] | |||
| Debt capacity | 19,300,000 | 24,100,000 | 23,900,000 |
| Short-term borrowings | $ 0 | $ 0 | $ 0 |
SHORT-TERM BORROWINGS AND LON_4
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 | Nov. 18, 2021 |
| Debt Instrument [Line Items] | ||||
| Total long-term debt | $ 749,654 | $ 783,921 | $ 788,270 | |
| Less: current portion | 0 | (20,000) | (15,000) | |
| Long-term debt, due beyond one year | 749,654 | 763,921 | 773,270 | |
| Term Loan A | Term Loan | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | 353,827 | 388,481 | 393,218 | |
| Revolving Credit Facility | ||||
| Debt Instrument [Line Items] | ||||
| Total long-term debt | 0 | 0 | 0 | |
| Senior Notes | 4.125% Senior Notes, due 2029 | ||||
| Debt Instrument [Line Items] | ||||
| Debt instrument, interest rate, stated percentage | 4.125% | |||
| Total long-term debt | $ 395,827 | $ 395,440 | $ 395,052 |
SHORT-TERM BORROWINGS AND LON_5
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Credit Facilities (Details) | 3 Months Ended | 6 Months Ended | |||
| Nov. 18, 2021 USD ($) | Jun. 29, 2024 USD ($) | Jun. 29, 2024 USD ($) election | Dec. 30, 2023 USD ($) | Jul. 01, 2023 USD ($) | |
| Debt Instrument [Line Items] | |||||
| Debt instrument, leverage ratio, number of elections to increase the limit (up to) | election | 2 | ||||
| Maximum | |||||
| Debt Instrument [Line Items] | |||||
| Leverage ratio | 4.50 | ||||
| Debt instrument, leverage ratio, limit increase | 5 | ||||
| Minimum | |||||
| Debt Instrument [Line Items] | |||||
| Debt instrument, interest coverage ratio | 3 | ||||
| Revolving Credit Facility | |||||
| Debt Instrument [Line Items] | |||||
| Debt instrument, term | 5 years | ||||
| Debt capacity | $ 500,000,000 | ||||
| Long-term debt, gross | $ 0 | $ 0 | |||
| Remaining borrowing capacity | 493,500,000 | 493,500,000 | |||
| Letter of Credit | |||||
| Debt Instrument [Line Items] | |||||
| Debt capacity | 75,000,000 | 75,000,000 | |||
| Long-term line of credit | 6,500,000 | 6,500,000 | |||
| Term Loan | Term Loan A | |||||
| Debt Instrument [Line Items] | |||||
| Debt instrument, term | 5 years | ||||
| Debt capacity | $ 400,000,000 | ||||
| Periodic payment | 5,000,000 | ||||
| Debt principal amount | 335,000,000 | ||||
| Debt instrument, periodic payment, principal | 25,000,000 | 35,000,000 | |||
| Long-term debt, gross | $ 355,000,000 | $ 355,000,000 | $ 390,000,000 | $ 395,000,000 | |
| Effective annual interest rate | 7.10% | 7.10% |
SHORT-TERM BORROWINGS AND LON_6
| SHORT-TERM BORROWINGS AND LONG-TERM DEBT - Senior Notes (Details) - 4.125% Senior Notes, due 2029 - Senior Notes - USD ($) $ in Millions | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 | Nov. 18, 2021 |
| Debt Instrument [Line Items] | ||||
| Debt instrument, face amount | $ 400 | |||
| Debt instrument, interest rate, stated percentage | 4.125% | |||
| Long-term debt, gross | $ 400 | $ 400 | $ 400 | |
| Effective annual interest rate | 4.30% |
FAIR VALUE MEASUREMENTS - Class
| FAIR VALUE MEASUREMENTS - Classes of Financial Assets and Financial Liabilities Measured and Recorded at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Cash equivalents: | |||
| Money market funds | $ 166,613 | $ 145,554 | |
| Time deposits | 2,280 | 2,283 | |
| Foreign currency exchange contracts | 5,750 | 19,757 | $ 31,911 |
| Investment securities | 48,711 | 46,250 | |
| Financial liabilities: | |||
| Foreign currency exchange contracts | 4,786 | 5,121 | $ 4,965 |
| Deferred compensation | 51,933 | 49,139 | |
| Level 1 | |||
| Cash equivalents: | |||
| Money market funds | 166,613 | 145,554 | |
| Time deposits | 2,280 | 2,283 | |
| Investment securities | 48,711 | 46,250 | |
| Financial liabilities: | |||
| Deferred compensation | 0 | 0 | |
| Level 2 | |||
| Cash equivalents: | |||
| Money market funds | 0 | 0 | |
| Time deposits | 0 | 0 | |
| Investment securities | 0 | 0 | |
| Financial liabilities: | |||
| Deferred compensation | 51,933 | 49,139 | |
| Level 3 | |||
| Cash equivalents: | |||
| Money market funds | 0 | 0 | |
| Time deposits | 0 | 0 | |
| Investment securities | 0 | 0 | |
| Financial liabilities: | |||
| Deferred compensation | 0 | 0 | |
| Foreign currency exchange contracts | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 5,750 | 16,504 | |
| Financial liabilities: | |||
| Foreign currency exchange contracts | 4,786 | 5,121 | |
| Foreign currency exchange contracts | Level 1 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 0 | 0 | |
| Financial liabilities: | |||
| Foreign currency exchange contracts | 0 | 0 | |
| Foreign currency exchange contracts | Level 2 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 5,750 | 16,504 | |
| Financial liabilities: | |||
| Foreign currency exchange contracts | 4,786 | 5,121 | |
| Foreign currency exchange contracts | Level 3 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 0 | 0 | |
| Financial liabilities: | |||
| Foreign currency exchange contracts | $ 0 | 0 | |
| Interest rate swap agreements | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 3,253 | ||
| Interest rate swap agreements | Level 1 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 0 | ||
| Interest rate swap agreements | Level 2 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | 3,253 | ||
| Interest rate swap agreements | Level 3 | |||
| Cash equivalents: | |||
| Foreign currency exchange contracts | $ 0 |
FAIR VALUE MEASUREMENTS - Addit
| FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Long-term debt | $ 749,654 | $ 783,921 | $ 788,270 |
| Level 2 | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
| Debt, fair value | $ 711,200 | $ 747,100 |
DERIVATIVE FINANCIAL INSTRUME_3
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
| Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 | |
| Derivative [Line Items] | |||
| Cash flow hedge gains to be reclassified during the next 12 months | $ 7.4 | ||
| Foreign currency exchange contracts | |||
| Derivative [Line Items] | |||
| Notional amount | $ 340.1 | $ 348.8 | $ 333 |
| Term of contract (up to) | 20 months | ||
| Interest rate swap agreements | |||
| Derivative [Line Items] | |||
| Notional amount | $ 300 | $ 300 |
DERIVATIVE FINANCIAL INSTRUME_4
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivatives on an Individual Contract Basis (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Fair Value of Derivatives with Unrealized Gains | |||
| Total derivatives | $ 5,750 | $ 19,757 | $ 31,911 |
| Fair Value of Derivatives with Unrealized Losses | |||
| Total derivatives | (4,786) | (5,121) | (4,965) |
| Designated as Hedging Instrument | Foreign currency exchange contracts | |||
| Fair Value of Derivatives with Unrealized Gains | |||
| Derivatives designated as hedging instruments: | 5,735 | 16,490 | 23,358 |
| Fair Value of Derivatives with Unrealized Losses | |||
| Derivatives designated as hedging instruments: | (4,757) | (5,098) | (4,629) |
| Designated as Hedging Instrument | Interest rate swap agreements | |||
| Fair Value of Derivatives with Unrealized Gains | |||
| Derivatives designated as hedging instruments: | 0 | 3,253 | 8,529 |
| Fair Value of Derivatives with Unrealized Losses | |||
| Derivatives designated as hedging instruments: | 0 | 0 | 0 |
| Not Designated as Hedging Instrument | Foreign currency exchange contracts | |||
| Fair Value of Derivatives with Unrealized Gains | |||
| Derivatives not designated as hedging instruments: | 15 | 14 | 24 |
| Fair Value of Derivatives with Unrealized Losses | |||
| Derivatives not designated as hedging instruments: | $ (29) | $ (23) | $ (336) |
DERIVATIVE FINANCIAL INSTRUME_5
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Reconciliation of Gross to Net Amounts for Derivative Asset and Liability Balances (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Derivative Asset | |||
| Gross amounts presented in the balance sheet | $ 5,750 | $ 19,757 | $ 31,911 |
| Gross amounts not offset in the balance sheet | (2,983) | (894) | (2,038) |
| Derivative Asset | 2,767 | 18,863 | 29,873 |
| Derivative Liability | |||
| Gross amounts presented in the balance sheet | (4,786) | (5,121) | (4,965) |
| Gross amounts not offset in the balance sheet | 2,983 | 894 | 2,038 |
| Derivative Liability | $ (1,803) | $ (4,227) | $ (2,927) |
DERIVATIVE FINANCIAL INSTRUME_6
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Location of Derivative in the Balance Sheets, with Current and Noncurrent Classification (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 |
| Derivatives, Fair Value [Line Items] | |||
| Foreign currency exchange contracts | $ 5,750 | $ 19,757 | $ 31,911 |
| Foreign currency exchange contracts | (4,786) | (5,121) | (4,965) |
| Prepaid expenses and other current assets | |||
| Derivatives, Fair Value [Line Items] | |||
| Foreign currency exchange contracts | 5,322 | 18,319 | 29,167 |
| Accrued and other current liabilities | |||
| Derivatives, Fair Value [Line Items] | |||
| Foreign currency exchange contracts | (2,950) | (4,009) | (4,497) |
| Other assets | |||
| Derivatives, Fair Value [Line Items] | |||
| Foreign currency exchange contracts | 428 | 1,438 | 2,744 |
| Other liabilities | |||
| Derivatives, Fair Value [Line Items] | |||
| Foreign currency exchange contracts | $ (1,836) | $ (1,112) | $ (468) |
DERIVATIVE FINANCIAL INSTRUME_7
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Cash Flow Hedging Relationships (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Derivative [Line Items] | ||||
| Gain (Loss) on Derivatives Recognized in AOCL | $ (11,361) | $ 9,809 | $ (1,141) | $ 19,837 |
| Foreign currency exchange contracts | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) on Derivatives Recognized in AOCL | (11,334) | 7,792 | (1,188) | 18,129 |
| Interest rate swap agreements | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) on Derivatives Recognized in AOCL | $ (27) | $ 2,017 | $ 47 | $ 1,708 |
DERIVATIVE FINANCIAL INSTRUME_8
| DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Location of Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Derivative [Line Items] | ||||
| Gain (Loss) Reclassified from AOCL into Income | $ 5,729 | $ 6,765 | $ 13,886 | $ 14,847 |
| Net revenues | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) Reclassified from AOCL into Income | (1,215) | (62) | (1,162) | (233) |
| Cost of goods sold | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) Reclassified from AOCL into Income | 6,290 | 4,256 | 11,581 | 10,248 |
| Other expense, net | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) Reclassified from AOCL into Income | 85 | 136 | 167 | 296 |
| Interest expense | ||||
| Derivative [Line Items] | ||||
| Gain (Loss) Reclassified from AOCL into Income | $ 569 | $ 2,435 | $ 3,300 | $ 4,536 |
CAPITAL AND ACCUMULATED OTHER_3
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Additional Information (Details) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | |
| Jun. 29, 2024 | Mar. 30, 2024 | Jun. 29, 2024 | |
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Repurchase of common stock | $ 25,166,000 | $ 20,105,000 | |
| Share repurchase program, authorized amount | $ 300,000,000 | $ 300,000,000 | |
| Common Stock | |||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
| Repurchases of common stock (in shares) | 345 | 337 | 700 |
| Repurchase of common stock | $ 45,000,000 | ||
CAPITAL AND ACCUMULATED OTHER_4
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Deferred Components of AOCL in Equity, Net of Related Taxes (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Mar. 30, 2024 | Dec. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 |
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
| Accumulated other comprehensive loss | $ 367,151 | $ 387,193 | $ 371,913 | $ 323,251 | $ 299,288 | $ 250,757 |
| Accumulated Other Comprehensive Loss | ||||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
| Accumulated other comprehensive loss | (94,936) | (68,232) | (67,851) | (60,093) | (68,005) | (79,665) |
| Foreign Currency Translation | ||||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
| Accumulated other comprehensive loss | (102,726) | (93,580) | (91,057) | (94,610) | (99,139) | (107,462) |
| Defined benefit pension plans: | ||||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
| Accumulated other comprehensive loss | 2,773 | 2,831 | 2,913 | 2,173 | 2,208 | 2,243 |
| Gains (losses) on derivative financial instruments: | ||||||
| Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
| Accumulated other comprehensive loss | $ 5,017 | $ 22,517 | $ 20,293 | $ 32,344 | $ 28,926 | $ 25,554 |
CAPITAL AND ACCUMULATED OTHER_5
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in AOCL, Net of Related Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
| Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Balance, beginning | $ 387,193 | $ 371,913 | $ 299,288 | $ 250,757 | $ 371,913 | $ 250,757 |
| Other comprehensive income (loss) due to gains (losses) arising before reclassifications | (21,007) | 13,971 | (13,842) | 32,586 | ||
| Reclassifications to net income of previously deferred (gains) losses | (5,697) | (6,059) | (13,243) | (13,014) | ||
| Total other comprehensive (loss) income, net of related taxes | (26,704) | (381) | 7,912 | 11,660 | (27,085) | 19,572 |
| Balance, ending | 367,151 | 387,193 | 323,251 | 299,288 | 367,151 | 323,251 |
| Accumulated Other Comprehensive Loss | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Balance, beginning | (68,232) | (67,851) | (68,005) | (79,665) | (67,851) | (79,665) |
| Total other comprehensive (loss) income, net of related taxes | (26,704) | (381) | 7,912 | 11,660 | ||
| Balance, ending | (94,936) | (68,232) | (60,093) | (68,005) | (94,936) | (60,093) |
| Foreign Currency Translation | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Balance, beginning | (93,580) | (91,057) | (99,139) | (107,462) | (91,057) | (107,462) |
| Other comprehensive income (loss) due to gains (losses) arising before reclassifications | (9,146) | 4,529 | (11,669) | 12,852 | ||
| Reclassifications to net income of previously deferred (gains) losses | 0 | 0 | 0 | 0 | ||
| Total other comprehensive (loss) income, net of related taxes | (9,146) | 4,529 | (11,669) | 12,852 | ||
| Balance, ending | (102,726) | (93,580) | (94,610) | (99,139) | (102,726) | (94,610) |
| Defined benefit pension plans: | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Balance, beginning | 2,831 | 2,913 | 2,208 | 2,243 | 2,913 | 2,243 |
| Other comprehensive income (loss) due to gains (losses) arising before reclassifications | 0 | 0 | 0 | 0 | ||
| Reclassifications to net income of previously deferred (gains) losses | (58) | (35) | (140) | (70) | ||
| Total other comprehensive (loss) income, net of related taxes | (58) | (35) | (140) | (70) | ||
| Balance, ending | 2,773 | 2,831 | 2,173 | 2,208 | 2,773 | 2,173 |
| Gains (losses) on derivative financial instruments: | ||||||
| AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
| Balance, beginning | 22,517 | 20,293 | 28,926 | 25,554 | 20,293 | 25,554 |
| Other comprehensive income (loss) due to gains (losses) arising before reclassifications | (11,861) | 9,442 | (2,173) | 19,734 | ||
| Reclassifications to net income of previously deferred (gains) losses | (5,639) | (6,024) | (13,103) | (12,944) | ||
| Total other comprehensive (loss) income, net of related taxes | (17,500) | 3,418 | (15,276) | 6,790 | ||
| Balance, ending | $ 5,017 | $ 22,517 | $ 32,344 | $ 28,926 | $ 5,017 | $ 32,344 |
CAPITAL AND ACCUMULATED OTHER_6
| CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification Out of AOCL (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
| Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
| Selling, general and administrative expenses | $ 196,117 | $ 186,864 | $ 396,831 | $ 378,616 | ||
| Net revenues | 606,898 | 616,009 | 1,238,100 | 1,283,132 | ||
| Cost of goods sold | 335,538 | 365,748 | 681,596 | 746,170 | ||
| Interest expense | (10,382) | (9,663) | (19,674) | (19,936) | ||
| Total before tax | 64,456 | 51,273 | 139,136 | 134,142 | ||
| Income taxes | (12,687) | (14,877) | (27,860) | (31,450) | ||
| Net income | 51,769 | $ 59,507 | 36,396 | $ 66,296 | 111,276 | 102,692 |
| Reclassification Out of AOCL | ||||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
| Net income | 5,697 | 6,059 | 13,243 | 13,014 | ||
| Reclassification Out of AOCL | Defined benefit pension plans: | ||||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
| Selling, general and administrative expenses | 92 | 47 | 185 | 93 | ||
| Total before tax | 92 | 47 | 185 | 93 | ||
| Income taxes | (34) | (12) | (45) | (23) | ||
| Net income | 58 | 35 | 140 | 70 | ||
| Reclassification Out of AOCL | Gains (losses) on derivative financial instruments: | ||||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
| Total before tax | 5,729 | 6,765 | 13,886 | 14,847 | ||
| Income taxes | (90) | (741) | (783) | (1,903) | ||
| Net income | 5,639 | 6,024 | 13,103 | 12,944 | ||
| Reclassification Out of AOCL | Gains (losses) on derivative financial instruments: | Foreign currency exchange contracts | ||||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
| Net revenues | (1,215) | (62) | (1,162) | (233) | ||
| Cost of goods sold | 6,290 | 4,256 | 11,581 | 10,248 | ||
| Other expense, net | 85 | 136 | 167 | 296 | ||
| Reclassification Out of AOCL | Gains (losses) on derivative financial instruments: | Interest rate swap agreements | ||||||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
| Interest expense | $ 569 | $ 2,435 | $ 3,300 | $ 4,536 | ||
STOCK-BASED COMPENSATION (Detai
| STOCK-BASED COMPENSATION (Details) - $ / shares | 3 Months Ended | |
| Apr. 01, 2024 | Jun. 29, 2024 | |
| Performance-based restricted stock units (PRSUs) | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Performance period | 3 years | |
| Performance-based restricted stock units (PRSUs) | Minimum | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Actual number of shares adjustment | 0% | |
| Performance-based restricted stock units (PRSUs) | Maximum | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Actual number of shares adjustment | 25% | |
| Performance-based restricted stock units (PRSUs) | Employee | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Grants in period (in shares) | 200,000 | |
| Vesting period | 3 years | |
| Performance-based restricted stock units (PRSUs) | Employee | Minimum | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Payout (in shares) | 0 | |
| Performance-based restricted stock units (PRSUs) | Employee | Maximum | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Payout (in shares) | 2 | |
| Restricted stock units (RSUs) | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Fair market value (in USD per share) | $ 60.35 | |
| Restricted stock units (RSUs) | Employee | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Grants in period (in shares) | 150,000 | |
| Payout (in shares) | 1 | |
| Vesting period | 3 years | |
| Restricted stock units (RSUs) | Nonemployee | Director | ||
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Grants in period (in shares) | 20,000 | |
| Payout (in shares) | 1 | |
| Vesting period | 1 year |
INCOME TAXES (Details)
| INCOME TAXES (Details) - USD ($) $ in Millions | 6 Months Ended | |
| Jun. 29, 2024 | Jul. 01, 2023 | |
| Income Tax Disclosure [Abstract] | ||
| Effective income tax rate | 20% | 23.40% |
| Tax increase (reduction) due to discrete items | (1.20%) | 3.90% |
| Effective income tax rate without discrete items | 21.20% | 19.50% |
| Increase (decrease) in unrecognized tax benefits and associated interest | $ 0.7 | |
| Net unrecognized tax benefits and interest, if recognized, would reduce the annual effective tax rate | 14.3 | |
| Possible decrease in unrecognized income tax benefits | $ 2.2 | |
EARNINGS PER SHARE - Schedule o
| EARNINGS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
| Jun. 29, 2024 | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Earnings Per Share [Abstract] | ||||||
| Net income | $ 51,769 | $ 59,507 | $ 36,396 | $ 66,296 | $ 111,276 | $ 102,692 |
| Basic weighted average shares outstanding (in shares) | 55,810 | 56,089 | 55,772 | 55,868 | ||
| Dilutive effect of stock-based awards (in shares) | 646 | 757 | 825 | 1,025 | ||
| Diluted weighted average shares outstanding (in shares) | 56,456 | 56,846 | 56,597 | 56,893 | ||
| Earnings per share: | ||||||
| Basic earnings per common share (in USD per share) | $ 0.93 | $ 0.65 | $ 2 | $ 1.84 | ||
| Diluted earnings per common share (in USD per share) | $ 0.92 | $ 0.64 | $ 1.97 | $ 1.80 | ||
EARNINGS PER SHARE - Additional
| EARNINGS PER SHARE - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Stock options excluded from computation of earnings per share (in shares) | 0 | 0 | 0 | 0 |
| Performance-based restricted stock units (PRSUs) | ||||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
| Shares excluded from computation of earnings per share (in shares) | 800,000 | 600,000 | 700,000 | 600,000 |
LEASES (Details)
| LEASES (Details) - USD ($) $ in Thousands | 6 Months Ended | |
| Jun. 29, 2024 | Jul. 01, 2023 | |
| Leases [Abstract] | ||
| Cash paid for amounts included in the measurement of lease liabilities - operating cash flows | $ 15,769 | $ 15,816 |
| Right-of-use operating lease assets obtained in exchange for new operating leases - non-cash activity | $ 4,962 | $ 11,683 |
RESTRUCTURING - Additional Info
| RESTRUCTURING - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
| Restructuring Cost and Reserve [Line Items] | |||||
| Charges | $ 3,304 | $ 7,796 | $ 7,915 | $ 7,796 | |
| Restructuring reserve | 1,847 | 1,847 | $ 827 | ||
| Restructuring reserve, current | 1,300 | 1,300 | |||
| Restructuring reserve, noncurrent | 500 | 500 | |||
| Selling, general and administrative expenses | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| Charges | 100 | 5,400 | 1,700 | 5,400 | |
| Cost of goods sold | |||||
| Restructuring Cost and Reserve [Line Items] | |||||
| Charges | $ 3,200 | $ 2,400 | $ 6,200 | $ 2,400 | |
RESTRUCTURING - Components of R
| RESTRUCTURING - Components of Restructuring Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Restructuring and Related Activities [Abstract] | ||||
| Severance and employee-related benefits | $ 2,004 | $ 6,614 | $ 3,985 | $ 6,614 |
| Asset impairments | 433 | 0 | 601 | 0 |
| Inventory write-downs | 219 | 0 | 1,902 | 0 |
| Other | 648 | 1,182 | 1,427 | 1,182 |
| Total restructuring charges | $ 3,304 | $ 7,796 | $ 7,915 | $ 7,796 |
RESTRUCTURING - Restructuring C
| RESTRUCTURING - Restructuring Costs by Business Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
| Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
| Restructuring Cost and Reserve [Line Items] | ||||
| Charges | $ 3,304 | $ 7,796 | $ 7,915 | $ 7,796 |
| Operating Segments | Wrangler | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Charges | 2,882 | 995 | 6,131 | 995 |
| Operating Segments | Lee | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Charges | 0 | 187 | 40 | 187 |
| Corporate and other | ||||
| Restructuring Cost and Reserve [Line Items] | ||||
| Charges | $ 422 | $ 6,614 | $ 1,744 | $ 6,614 |
RESTRUCTURING - Activity in Res
| RESTRUCTURING - Activity in Restructuring (Details) $ in Thousands | 6 Months Ended |
| Jun. 29, 2024 USD ($) | |
| Restructuring Reserve [Roll Forward] | |
| Amounts recorded in accrued liabilities, beginning | $ 827 |
| Charges | 4,875 |
| Cash payments | (3,557) |
| Adjustments to accruals | (290) |
| Currency translation | (8) |
| Amounts recorded in accrued liabilities. ending | $ 1,847 |
SUBSEQUENT EVENTS (Details)
| SUBSEQUENT EVENTS (Details) | Jul. 25, 2024 $ / shares |
| Subsequent Event | Dividend Declared | |
| Subsequent Event [Line Items] | |
| Dividends payable (in USD per share) | $ 0.50 |