Levi Strauss & Co. reported Wednesday its complete holiday-quarter sales dropped 12%, marking an enchancment from a more than 20% decline in the prior period, as weak shopper visitors at its shops was partially offset by double-digit progress online.
Shares had been lately up greater than 1% in after-hours buying and selling after initially falling greater than 4%.
Chief Executive Chip Bergh informed CNBC that the outcomes for the newest quarter topped the denim maker’s inside expectations, almost assembly the “best-case scenario” that Levi laid out again when the Covid pandemic first began to hit the United States and disrupt many companies.
“We pivoted very hard to [direct to consumer] and especially to e-commerce,” Bergh stated in a cellphone interview. “Our e-commerce business was profitable in the fourth quarter, and profitable for the full year.”
Levi’s world digital sales, which embrace the online sales of its merchandise at wholesale companions, made up 23% of fourth-quarter sales, up from 15% within the prior-year interval.
Here’s how Levi Strauss & Co. did throughout its fiscal fourth quarter in contrast with what analysts had been anticipating, utilizing Refinitiv information:
- Earnings per share: 20 cents, adjusted, vs. 15 cents, anticipated
- Revenue: $1.39 billion vs. $1.34 billion, anticipated
For the three-month interval ended Nov. 29, Levi earned $57 million, or 14 cents per share, in contrast with $96 million, or 23 cents per share, a yr earlier. Excluding one-time costs, it earned 20 cents per share, which was higher than the 15 cents anticipated by analysts, utilizing Refinitiv information.
Net income fell 12% to $1.39 billion from $1.57 billion a yr earlier. That was higher than the $1.34 billion forecast by analysts.
Digital sales globally had been up 34%, which incorporates sales made on its associate platforms like Amazon.
Levi stated income from its wholesale companions dropped 15% in the course of the quarter, whereas its direct-to-consumer income was down 5%, as a result of decrease visits to its shops.
As the coronavirus pandemic continues to disrupt regular enterprise operations, the corporate stated that at the moment roughly 40% of its shops in Europe, and 17% globally together with 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 earnings launch. “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, as of Wednesday’s market shut, are up somewhat greater than 8% from a yr in the past. The firm has a market cap of $8.Eight billion.