The Company commenced a sale process of its global Lee® brand and associated business during the first quarter of 2026, with an expectation of completing a transaction during fiscal 2026. At the end of the first quarter of 2026, the Company determined that the Lee® business met held-for-sale criteria and reported the assets and liabilities of the Lee® business as held-for-sale in the Company's balance sheets for all periods presented. Additionally, the planned sale represents a strategic shift that will have a major effect on the Company's operations and financial results. During the second quarter of 2026, the Company entered into a Purchase Agreement with the Buyer to sell the Lee® business for $750.0 million in cash at closing with an additional $250.0 million earnout opportunity based on the future performance of the Lee® business over a five-year period. Accordingly, the Company reported the Lee® business as discontinued operations in its statements of operations and statements of cash flows for all periods presented. The results of the Lee® business were historically reported in the Lee segment. Income from discontinued operations, net of tax was $7.8 million and $15.2 million for the three months ended June 2026 and June 2025, respectively, and $39.2 million and $47.8 million for the six months ended June 2026 and June 2025, respectively.

During the first quarter of 2026, the Company determined that the decision to pursue a sale transaction of the Lee® business was a triggering event that required impairment testing of goodwill, the indefinite-lived intangible asset and long-lived assets of the Lee reporting unit. No impairment charges were required to be recorded as a result of the testing performed. Refer to Note 11 to the Company's financial statements in this Form 10-Q for additional details regarding the impairment testing related to the Lee® business.

Certain corporate overhead costs and segment costs previously allocated to the Lee® business for segment reporting purposes did not qualify for classification within discontinued operations and have been reported in continuing operations for all periods presented. For the three months ended June 2026 and June 2025, previously allocated costs of $1.6 million and $0.6 million, respectively, were reported as cost of goods sold in our statements of operations on a continuing operations basis. For the six months ended June 2026 and June 2025, previously allocated costs of $3.1 million and $1.6 million, respectively, were reported as cost of goods sold in our statements of operations on a continuing operations basis. For the three months ended June 2026 and June 2025, previously allocated costs of $12.6 million and $7.8 million, respectively, were reported as selling, general and administrative expenses in our statements of operations on a continuing operations basis. For the six months ended June 2026 and June 2025, previously allocated costs of $22.4 million and $15.6 million, respectively, were reported as "selling, general and administrative expenses" in our statements of operations on a continuing operations basis. These previously allocated costs are reported within corporate and other expenses in the segment reporting reconciliation in Note 5 to the Company's financial statements in this Form 10-Q. Separation and related expenses associated with the sale of the Lee® business are reported as a component of "income from discontinued operations, net of tax" in our statements of operations.


	Three Months Ended June				Six Months Ended June
(In thousands)
	2026		2025		2026		2025
Net revenues	$	159,168	$	165,627	$	353,456	$	365,527
Cost of goods sold	76,628		89,971		168,103		186,969
Selling, general and administrative expenses	71,636		54,067		134,490		115,039


Interest income	66		77		163		198
Other (expense) income, net	(938)		(785)		(1,205)		(1,492)
Income from discontinued operations before income taxes	$	10,032	$	20,881	$	49,821	$	62,225


Income taxes	(2,251)		(5,708)		(10,639)		(14,419)
Income from discontinued operations, net of tax	$	7,781	$	15,173	$	39,182	$	47,806


(In thousands)	June 2026		December 2025		June 2025
Cash and cash equivalents	$	22,360	$	31,227	$	21,568
Accounts receivable, net	53,751		67,005		67,231
Inventories	129,899		130,737		142,385
Prepaid expenses and other current assets	22,313		27,512		24,572
Total current assets of discontinued operations	228,323		256,481		255,756
Property, plant and equipment, net	16,622		17,443		17,188
Operating lease assets	30,541		31,249		33,647
Intangible assets, net	4,711		4,833		4,840
Goodwill	79,691		80,131		80,463

Other assets	30,652		35,401		38,635
Total other assets of discontinued operations	162,217		169,057		174,773
Total assets of discontinued operations	$	390,540	$	425,538	$	430,529


Accounts payable	$	51,459	$	49,554	$	48,727
Accrued and other current liabilities	51,885		68,236		56,108
Operating lease liabilities, current	10,212		11,245		11,361
Total current liabilities of discontinued operations	113,556		129,035		116,196
Operating lease liabilities, noncurrent	17,712		21,455		23,693

Other liabilities	9,314		8,291		10,978
Total other liabilities of discontinued operations	27,026		29,746		34,671
Total liabilities of discontinued operations	$	140,582	$	158,781	$	150,867