Levi’s (LEVI) reports that it exceeded revenue and sales in the fourth quarter of 2020

Levi’s clothing can be found on the shelves of stores in Miami, Florida.

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Levi Strauss & Co. Reported Wednesday that total holiday quarter sales fell 12%, an improvement over a 20% or more decline in the previous period. This is because the slump in shopper traffic in stores was partially offset by double-digit growth online.

Stocks have recently risen by more than 1% in after-hours trading, after initially falling by more than 4%.

CEO Chipberg told CNBC that the latest quarter results exceeded denim maker’s internal expectations, and Levi told CNBC when Covid’s pandemic first hit the United States and began to disrupt many businesses. He said he almost met the “best case scenario”.

“We pivoted very hard [direct to consumer] “Especially in e-commerce, we made a profit in the fourth quarter and made a full year,” Berg said in a telephone interview.

Global digital sales, including online sales of goods at Levi’s wholesale partners, accounted for 23% of fourth-quarter sales, up from 15% in the year-ago quarter.

Levi Strauss & Co. Here’s how Refinitiv data was used to behave in the fourth quarter compared to what analysts expected.

  • Earnings per share: adjusted 20 cents, expected 15 cents
  • Revenue: $ 1.39 billion vs. $ 1.34 billion, forecast

During the three months ending November 29, Levi earned $ 57 million, or 14 cents per share. In contrast, the previous year was $ 96 million, or 23 cents per share. Excluding the one-time charge, it earned 20 cents per share, which was better than analysts expected 15 cents using Refinitiv data.

Net sales were $ 1.39 billion, down 12% from $ 1.57 billion in the previous year. This was better than analysts predicted $ 1.34 billion.

Global digital sales grew 34%, including sales on partner platforms such as Amazon.

According to Levi, revenue from wholesale partners fell 15% this quarter, while direct sales revenue fell 5% due to fewer store visits.

As the coronavirus pandemic continues to disrupt normal business operations, the company said it is currently closing about 40% of its stores in Europe and 17% of the world’s stores, including franchisees.

“The recent viral resurgence emphasizes that the ultimate impact of the Covid-19 pandemic remains highly uncertain,” Levi said in a statement. “The company expects the business to continue to have a significant negative impact, at least in the first half of 2021, and may add Covid-19-related inventory and other costs.”

Levi’s share price has risen more than 8% since a year ago at the end of the market on Wednesday. The company has a market capitalization of $ 8.8 billion.

Levi Strauss & Co. Find the full press release from here.

Levi’s (LEVI) reports that it exceeded revenue and sales in the fourth quarter of 2020

Source link Levi’s (LEVI) reports that it exceeded revenue and sales in the fourth quarter of 2020

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