Top Stories
Top Stories
Wires

UPDATE 1-Lee, Wrangler jeans maker Kontoor beats profit estimates as cost cuts pay off

cuts pay off@ (Adds second-quarter details, estimates and background)

Aug 8 (Reuters) - Kontoor Brands Inc reported a better-than-expected quarterly profit on Thursday as the denim apparel maker's efforts to cut costs post its spinoff from VF Corp paid off.

The separation from Vans shoe maker VF Corp that was completed in May is allowing Kontoor to focus on improving its Lee and Wrangler businesses by streamlining its supply chain and sourcing from less expensive suppliers.

The company's total costs and operating expenses fell about 5% in the second quarter.

"The restructuring and cost savings actions we've taken ... are paying off and are setting the foundation for improved profitability in the second half of 2019," Chief Executive Officer Scott Baxter said in a statement.

The company's net income fell 37.2% to $38 million, or 67 cents per share, in the quarter ended June 29.

Excluding certain items, the company earned 96 cents per share, beating analysts' estimates of 67 cents, according to IBES data from Refinitiv.

Adjusted net revenue fell 6.3% to $602.4 million, but beat the average analyst estimate of $591.18 million. (Reporting by Uday Sampath and Aditi Sebastian; Editing by Maju Samuel)