Levi’s clothing is on display on a store shelf in Miami, Florida.
Joe Raedle | Getty Images
Levi Strauss & Co. reported Wednesday that overall sales in the holiday quarter fell 12%, an improvement from a decline of more than 20% in the previous period, as weak in-store traffic in its stores was partially offset by double-digit online growth.
Shares recently rose more than 1% in non-business hours trading, after initially falling more than 4%.
Chief Executive Chip Bergh told CNBC the last quarter results exceeded the denim manufacturer’s internal expectations and nearly met the “best-case scenario” Levi set out when the Covid pandemic first hit the United States and disrupted many businesses. .
“We played really hard [direct to consumer] and especially in the field of e-commerce, “Bergh said in a telephone interview.” Our e-commerce business was profitable in the fourth quarter and profitable for the full year. “
Levi’s global digital sales, including online sales of its merchandise at wholesale partners, accounted for 23% of sales in the fourth quarter, up from 15% in the same period last year.
This is how Levi Strauss & Co. it compared to what analysts expected during the fiscal fourth quarter, using data from Refinitiv:
- Earnings per share: 20 cents, adjusted, versus 15 cents, expected
- Revenue: $ 1.39 billion vs. $ 1.34 billion expected
For the three-month period ending November 29, Levi earned $ 57 million, or 14 cents a share, compared to $ 96 million or 23 cents a share a year earlier. Excluding one-off costs, it earned 20 cents a share, which was better than the 15 cents analysts expected based on Refinitiv data.
Net income fell 12% to $ 1.39 billion from $ 1.57 billion a year earlier. That was better than the $ 1.34 billion forecast by analysts.
Worldwide digital sales were up 34%, including sales on its partner platforms such as Amazon.
Levi said its wholesale partners’ sales fell 15% during the quarter, while direct-to-consumer sales were down 5% due to fewer 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 franchise-operated locations, are closed.
“The recent resurgence of the virus underscores that the ultimate impact of the Covid-19 pandemic remains highly uncertain,” Levi said in his earnings release. “The company expects its business … to be significantly negatively impacted at least in the first half of 2021, and there remains the possibility of additional Covid-19-related inventory and other costs.”
Shares of Levi are up just over 8% since Wednesday’s close from a year ago. The company has a market capitalization of $ 8.8 billion.
Find the full Levi Strauss & Co. press release here.