In the fourth quarter of 2024 the Company announced it had initiated a formal review of strategic alternatives to the global Dockers® brand, which could include a sale or other strategic transactions. During the first quarter of 2025, the Company commenced a sale process of its Dockers® business and the Company determined that the Dockers® business met held for sale and discontinued operations accounting criteria. During the second quarter of 2025, the Company entered into a definitive agreement to sell its Dockers® business for an initial transaction value of $311 million, subject to customary adjustments and closing conditions, with the potential to reach up to $391 million through an $80 million earnout opportunity in future years based on the performance of the Dockers® business. On July 31, 2025 the Company sold the Dockers® intellectual property and operations in the U.S. and Canada for gross proceeds of $194.7 million, resulting in a gain on sale of $139.0 million, net of direct costs to sell. The Company sold the remaining Dockers® operations in multiple closings during the first quarter of 2026, with the final closing on February 27, 2026, for gross proceeds of $96.3 million, resulting in a gain on sale of $17.3 million, net of direct costs to sell.

Under the terms of a transition services agreement, the Company provided certain post-closing accounting, tax, digital technology and supply chain services for Dockers® operations in the U.S. and Canada for a transitional period ending in the first quarter of 2026. Fees earned under the transition services agreement were included in “Selling, general and administrative expenses” in the consolidated statements of income.

Prior to the sale of Dockers operations in the first quarter of 2026, Dockers® net assets were classified as held for sale in the consolidated balance sheets for all periods presented. The Dockers® net assets were classified as current and non-current. Additionally, the Company classified the Dockers® business as discontinued operations in its consolidated statements of income for all periods presented.


	November 30, 2025

	(Dollars in millions)
Current Assets:
Inventories	$	54.0
Total current assets held for sale	54.0
Property, plant and equipment, net	6.9
Operating lease right-of-use assets, net	14.4
Total non-current assets held for sale	21.3
Total assets held for sale	$	75.3

Current Liabilities:
Short-term operating lease liabilities	$	3.9
Total current liabilities held for sale	3.9
Long-term operating lease liabilities	6.1
Total long-term liabilities held for sale	6.1
Total liabilities held for sale	$	10.0


	Three Months Ended		Six Months Ended
	June 1, 2025		May 31, 2026		June 1, 2025

	(Dollars in millions)
Net revenues	$	71.8	$	31.0	$	139.2
Cost of goods sold	37.3		14.6		68.3
Gross profit	34.5		16.4		70.9
Selling, general and administrative expenses	44.1		31.4		85.6
Restructuring charges, net	6.5		8.8		8.3
Operating loss	(16.1)		(23.8)		(23.0)
Other expense	—		(2.9)		—
Income (loss) from discontinued operations before gain on sale and income taxes	(16.1)		(26.7)		(23.0)
Gain on sale of Dockers® remaining operations before income taxes	—		17.3		—
Total income (loss) from discontinued operations before income taxes	(16.1)		(9.4)		(23.0)
Income tax expense (benefit)	(3.5)		(0.6)		(5.2)
Net income (loss) from discontinued operations, net of taxes	$	(12.6)	$	(8.8)	$	(17.8)

Discontinued operations results for the three months ended May 31, 2026 consisted primarily of expenses in connection with winding down remaining operations and adjustments to the gain on sale. Cash flows related to discontinued operations are included in the consolidated statements of cash flows. The gain on sale of Dockers® remaining operations of $33.6 million, prior to costs to sell, was an adjustment to reconcile net income to net cash provided by operating activities and the proceeds from sale of $96.3 million were included in cash flows from investing activities. There were no other significant operating noncash items or investing activities cash flows from discontinued operations during the three and six months ended May 31, 2026 and June 1, 2025.