Contour Brands (K-T-B): Transformational Acquisition Pushing Denim Growth

2 months ago

Greg Torto

"Contour Brands purchased Helly Hanson for about $900 million, which is expected to be a significant transformational deal for their P&L. We anticipate this deal could drive mid to high teens growth, perhaps as close to 20% next year, adding a new dimension to their core denim business."

Contour Brands (K-T-B) is positioned to benefit from its recent acquisition of Helly Hanson, a well-known durable brand, for approximately $900 million. This strategic move is expected to transform the company’s earnings profile with projected growth in the mid to high teens, possibly nearing 20% next year, making it an actionable buy trade.