Levi’s clothing are seen on a shop rack in Miami, Florida.
Joe Raedle | Getty Images
Levi Strauss & Co. reported Wednesday its overall holiday-quarter sales dropped 12%, marking an enhancement from a more than 20% decrease in the previous duration, as weak buyer traffic at its shops was partly balanced out by double-digit development online.
Shares were just recently up more than 1% in after-hours trading after at first falling more than 4%.
Chief Executive Chip Bergh informed CNBC that the outcomes for the most recent quarter topped the jeans maker’s internal expectations, almost satisfying the “best-case scenario” that Levi set out back when the Covid pandemic very first begun to strike the United States and interrupt numerous companies.
“We rotated really tough to [direct to consumer] and particularly to e-commerce,” Bergh stated in a phone interview. “Our e-commerce business was profitable in the fourth quarter, and profitable for the full year.”
Levi’s worldwide digital sales, that include the online sales of its product at wholesale partners, comprised 23% of fourth-quarter sales, up from 15% in the prior-year duration.
Here’s how Levi Strauss & Co. did throughout its financial 4th quarter compared to what experts were anticipating, utilizing Refinitiv information:
- Earnings per share: 20 cents, changed, vs. 15 cents, anticipated
- Revenue: $1.39 billion vs. $1.34 billion, anticipated
For the three-month duration ended Nov. 29, Levi made $57 million, or 14 cents per share, compared to $96 million, or 23 cents per share, a year previously. Excluding one-time charges, it made 20 cents per share, which was much better than the 15 cents anticipated by experts, utilizing Refinitiv information.
Net profits fell 12% to $1.39 billion from $1.57 billion a year previously. That was much better than the $1.34 billion anticipated by experts.
Digital sales worldwide were up 34%, that includes sales made on its partner platforms like Amazon.
Levi stated profits from its wholesale partners dropped 15% throughout the quarter, while its direct-to-consumer profits was down 5%, due to lower sees to its shops.
As the coronavirus pandemic continues to interrupt typical organization operations, the business stated that presently approximately 40% of its shops in Europe, and 17% worldwide consisting of franchisee-operated places, are closed.
“The recent resurgence of the virus underscores that the ultimate impact of the Covid-19 pandemic remains highly uncertain,” Levi stated in its incomes release. “The company expects that its business … will continue to be significantly adversely impacted for at least the first half of 2021, and there remains the possibility of additional Covid-19 related inventory and other charges.”
Levi shares, since Wednesday’s market close, are up a bit more than 8% from a year earlier. The business has a market cap of $8.8 billion.
Find the complete news release from Levi Strauss & Co. here.