Kontoor Inc., with a portfolio led by the Wrangler and Lee brands, has strengthened liquidity and improved its financial position in the second quarter, even as the economic crisis that resulted from the global pandemic brought down sales and earnings.

The company ended the quarter with $256 million in cash and equivalents, and approximately $1.1 billion in long-term debt. It repaid $175 million against the revolver in conjunction with the closing of the amendment to the credit facility in May.

Due to the company’s strong cash generation, in June it made an additional discretionary repayment on its revolver of $75 million. As of June, Kontoor had $225 million of outstanding borrowings under the revolving credit facility and $273 million available for borrowing against it.

Inventory at the end of the second quarter of 2020 was $433 million, down $105 million or 20 percent compared to the prior-year period.

Revenue for the second quarter ended June 27 decreased 43 percent to $349 million. Kontoor said the revenue declines were primarily the result of COVID-19-related wholesale and owned-door closures, and stay-at-home orders, as well as an approximate $33 million timing shift of shipments from the second quarter to the third. Revenue on a year-over-year basis sequentially improved each month as the quarter progressed.