Levi’s clothing can be seen on a store shelf in Miami, Florida.
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Levi Strauss & Co. said. On Wednesday its total holiday sales fell 12%, marking an improvement from a decline of more than 20% in the previous period, as weak consumer traffic at its stores was offset in part by double-digit growth. online.
Shares rose more than 1% recently in after-hours trading after initially falling more than 4%.
Chief Executive Chip Bergh told CNBC that the results for the latest quarter exceeded the denim maker’s expectations, almost meeting the “best case scenario”. Levi put it back when Covid ‘s pandemic began to hit the United States and upset many businesses.
“We were very sorry [direct to consumer] and specifically to e-commerce, “Bergh said in a phone interview.” Our e-commerce business was profitable in the fourth quarter, and profitable for the full year. “
Levi’s global digital sales, which include online sales of goods at wholesale partners, accounted for 23% of fourth-quarter sales, up from 15% in the prior period.
This is what Levi Strauss & Co. did. during its fourth fiscal quarter compared to analysts’ expectations, using Refinitiv data:
- Earnings per installment: 20 cents, adjusted, vs 15 cents, expected
- Revenue: $ 1.39 billion vs. $ 1.34 billion, expected
For the three months ended November 29, Levi earned $ 57 million, or 14 cents per share, compared to $ 96 million, or 23 cents per share, a year earlier. Excluding one-time expenses, he earned 20 cents per share, which was better than the 15 cents analysts had expected, using Refinitiv data.
Net revenue fell 12% to $ 1.39 billion from $ 1.57 billion a year earlier. That was better than the $ 1.34 billion forecast by analysts.
Global digital sales rose 34%, which includes sales made on its partner platforms like Amazon.
Levi reported that revenue from its wholesale partners fell 15% in the quarter, while direct-to-spend revenue was down 5%, as a result of more visits. low on its stocks.
As the coronavirus outbreak continues to disrupt normal business activity, the company said that about 40% of its stores are currently in Europe, and 17% worldwide ‘includes licensed premises, closed.
“The recent resurgence of the virus confirms that the ultimate impact of Covid-19 pandemic disease remains highly uncertain,” Levi said in an employment announcement. the company expects its business to continue to be severely affected … for at least the first half of 2021, and there is still scope for Covid-19 related investments and other costs. “
Shares of Levi’s, as it was near Wednesday’s market, are up just over 8% from a year ago. The company has a market potential of $ 8.8 billion.
Find the full press release from Levi Strauss & Co. here.