The Company commenced a sale process of its global Lee® 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 sale represented a strategic shift that was expected to 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, subject to customary adjustments, 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 $4.1 million and $20.9 million for the three months ended September 2026 and September 2025, respectively, and $43.2 million and $68.7 million for the nine months ended September 2026 and September 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 September 2026 and September 2025, previously allocated costs of $3.7 million and $1.3 million, respectively, were reported as "cost of goods sold" in our statements of operations on a continuing operations basis. For the nine months ended September 2026 and September 2025, previously allocated costs of $6.8 million and $2.9 million, respectively, were reported as "cost of goods sold" in our statements of operations on a continuing operations basis. For the three months ended September 2026 and September 2025, previously allocated costs of $12.5 million and $7.6 million, respectively, were reported as "selling, general and administrative expenses" in our statements of operations on a continuing operations basis. For the nine months ended September 2026 and September 2025, previously allocated costs of $35.0 million and $23.2 million, respectively, were reported as "selling, general and administrative expense" 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.

On November 2, 2026, the Company completed the sale of the global Lee® business. Refer to Note 18 to the Company's financial statements in this Form 10-Q for additional information. Net cash proceeds received were approximately $698.2 million, subject to customary adjustments including for cash, indebtedness and working capital as set forth in the Purchase Agreement. In connection with the sale, the Company finalized transition services agreements to provide certain post-closing accounting, tax, treasury, technology and supply chain services on a transitional basis for periods extending up to 12 months, with options to request an extension of certain services.


	Three Months Ended September				Nine Months Ended September
(In thousands)
	2026		2025		2026		2025
Net revenues	$	187,508	$	186,743	$	540,964	$	552,270
Cost of goods sold	96,090		101,080		264,193		288,049
Selling, general and administrative expenses	87,043		59,225		221,533		174,264


Interest income	57		60		220		258
Other expense, net	(808)		(860)		(2,013)		(2,352)
Income from discontinued operations before income taxes	$	3,624	$	25,638	$	53,445	$	87,863


Income taxes	433		(4,700)		(10,206)		(19,119)
Income from discontinued operations, net of tax	$	4,057	$	20,938	$	43,239	$	68,744


(In thousands)	September 2026		December 2025		September 2025
Cash and cash equivalents	$	21,161	$	31,227	$	24,510
Accounts receivable, net	73,630		67,005		86,157
Inventories	119,256		130,737		160,972
Prepaid expenses and other current assets	22,258		27,512		29,518
Total current assets of discontinued operations	236,305		256,481		301,157
Property, plant and equipment, net	16,037		17,443		17,360
Operating lease assets	30,284		31,249		34,105
Intangible assets, net	4,639		4,833		4,823
Goodwill	79,557		80,131		80,216

Other assets	28,810		35,401		38,578
Total other assets of discontinued operations	159,327		169,057		175,082
Total assets of discontinued operations	$	395,632	$	425,538	$	476,239


Accounts payable	$	58,772	$	49,554	$	76,130
Accrued and other current liabilities	59,264		68,236		71,017
Operating lease liabilities, current	9,758		11,245		11,944
Total current liabilities of discontinued operations	127,794		129,035		159,091
Operating lease liabilities, noncurrent	16,211		21,455		23,535

Other liabilities	7,003		8,291		10,717
Total other liabilities of discontinued operations	23,214		29,746		34,252
Total liabilities of discontinued operations	$	151,008	$	158,781	$	193,343