Shares of Wrangler parent Kontoor Brands rise after revenue beats expectations

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Kontoor Brands Inc. shares rose 3.5% in Thursday premarket trading after the denim company reported second-quarter revenue that exceeded expectations. Net losses totaled $33.3 million, or 58 cents per share, after net income of $38.0 million, or 67 cents per share, last year. Adjusted loss per share of 22 cents was ahead of the FactSet consensus for a loss of 40 cents per share. Revenue of $349.3 million was down from $609.7 million last year but well ahead of the FactSet consensus for $292 million. Revenue fell due to COVID-19-related wholesale retail closures and a shift of shipments totaling $33 million from the second quarter to the third quarter. Wrangler revenue fell 31% to $252 million while Lee revenue sank 58% to $86 million. At the end of the quarter, Kontoor had $256 million in cash and equivalents, and $1.1 billion in long-term debt. As of June 2020, the company had $225 million of outstanding borrowings from its credit revolver with $273 million available. Kontoor shares have slumped 49.4% for the year to date while the S&P 500 index has gained 3% for the period.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.