Canadian Tire sells iconic Helly Hansen brand to U.S. company
Under the looming uncertainty of U.S. tariffs, one of Canada’s largest retailers is selling off a brand that’s become a ski-slope staple.
What happened: Canadian Tire is selling activewear brand Helly Hansen to Kontoor Brands — the U.S. owner of Wrangler jeans — for $1.3 billion. Since Canadian Tire bought the Norwegian brand six years ago, the label’s earnings have more than doubled.
- Canadian Tire’s CEO said that as it focuses its business solely on Canadian retail, it was “time to pass this iconic brand into global hands.”
Why it matters: The sale gives Canadian Tire financial flexibility as it prepares for the shock of potential U.S. tariffs. Even though the retailer imports only 15% of its goods directly from the U.S., it’s concerned that the tariffs will lead to Canadians losing jobs and spending less.
- The company says the cash will allow it to reinvest in its stores and pay down its debt, but will also provide a financial buffer to weather the possible storm ahead.
Big picture: While big names like Canadian Tire, Aritzia, and Tim Hortons are all tariff-proofing their supply chains, smaller firms that rely on imports and don’t have the same bargaining power are struggling to pivot their businesses away from the U.S.
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