Levi’s clothes are seen on a shelf in the store in Miami, Florida.
Joe Raedle | Getty Images
Levi Strauss & Co. reported on Wednesday that its total sales for the quarter fell 12%, an improvement on the decline of more than 20% in the previous period, as low buyer traffic in its stores went down. partially offset by double-digit growth online.
Recently, shares rose more than 1% in after-hours trading after initially falling more than 4%.
Executive Chairman Chip Bergh told CNBC that last quarter’s results exceeded the denim maker’s internal expectations, almost meeting the “best case” Levi set when the Covid pandemic began to hit the United States and disrupt many companies.
“We pivoted very hard [direct to consumer] and especially in e-commerce, “Bergh said in a telephone interview.” Our e-commerce business was profitable in the fourth quarter and was profitable year-round. “
Levi’s global digital sales, which include online sales of its merchandise to wholesale partners, accounted for 23% of fourth-quarter sales, up from 15% in the previous year’s period.
This is how Levi Strauss & Co. did. during its fourth fiscal quarter compared to what analysts expected, using data from Refinitiv:
- Earnings per share: 20 cents, adjusted, against 15 cents expected
- Revenue: $ 1.333 billion versus $ 1.34 billion, projected
During the three-month period ended Nov. 29, Levi earned $ 57 million, or 14 cents per share, compared to $ 96 million, or 23 cents per share, a year earlier. Excluding single charges, it earned 20 cents per share, which was better than the 15 cents expected by analysts, using data from Refinitiv.
Net income fell 12%, to $ 1.39 billion, from $ 1.57 million a year earlier. This was better than the $ 1.34 billion predicted by analysts.
Global digital sales increased 34%, which includes sales made on its partner platforms like Amazon.
Levi said revenue from its wholesale partners fell 15 percent during the quarter, while direct consumer revenue fell 5 percent, due to lower visits to its stores.
As the coronavirus pandemic continues to disrupt normal business operations, the company said that currently approximately 40% of its stores in Europe and 17% worldwide, including locations operated by franchisees, are closed.
“The recent resurgence of the virus underscores that the final impact of the Covid-19 pandemic remains highly uncertain,” Levi said in his benefit statement. “The company expects that its business … will continue to be significantly affected for at least the first half of 2021, and there remains the possibility of additional inventory related to Covid-19 and other charges.”
Levi’s shares, at the close of Wednesday’s market, have risen just over 8% from a year ago. The company has a market cap of $ 8.8 billion.
Find the full press release of Levi Strauss & Co. here