The owner of Wrangler and Lee suffered a revenue fall in the second quarter.
Kontoor Brands Inc.’s net revenue slid to $610 million, driven by the impact of a major U.S. retailer bankruptcy, actions to exit an underperforming country in Europe and foreign currency headwinds.
U.S. revenue fell 3 percent to $487 million and international revenue was $123 million, down 25 percent.
Net income was $38 million, or 67 cents a share, down from $60.5 million, or $1.07 a share last year.
Scott Baxter, president and chief executive officer of Kontoor, said the company had taken measures to improve profitability in the second half.
“The restructuring and cost-savings actions we’ve taken to simplify and stabilize the organization are paying off and are setting the foundation for improved profitability in the second half of 2019 and beyond,” he stressed.
Kontoor was part of VF Corp., but earlier this year was spun off into its own company.
The idea behind the spin-off was to separate the relatively staid jeans brands from VF’s best-performing names, Vans and The North Face, so both divisions could get the specialist attention they required.
As part of the deal, Kontoor was given its own dedicated management team that can focus on capturing a bigger slice of the resurgent denim market — a category that is bouncing back after some tough ath-leisure competition.