Retail continues to take a blow from the COVID-19 pandemic as Kontoor Brands recorded a loss of 22 Y-o-Y loss in first financial quarter amounting to $504 million. The parent company of Wrangler and Lee, reported 14 per cent decrease in revenue as compared to Q1 of last year. It also reported 16 per cent loss of revenue from the US market that contributed $379 million to the overall sales.

The company recorded a 41 per cent rise in digital wholesale as the stores continue to remain shut during the lockdown. China’s contribution towards revenue was hit the most as the international level fell to $126 million from $172 million of Q1 2019.

The company has suspended dividend distribution for the upcoming future to strengthen its financial holding. It also reported that their revolving credit facility of $475 million will be able to provide some financial buffer until retail sales start catching up.