Levi Sales Beat Estimates as Covid Uncertainty Persists
(Bloomberg) -- Blue jeans maker Levi Strauss & Co. reported fourth-quarter sales that came in above investors’ estimates, but said that the pandemic is still clouding the company’s outlook.
- Sales of $1.39 billion in the period ended Nov. 29, higher than the $1.34 billion estimate from analysts. The company said it will share guidance for fiscal 2021 in its upcoming call with analysts.
Key Insights
- Covid restrictions continue to hurt business, with 40% of Levi’s store footprint in Europe currently closed. Globally, 17% of company-operated and franchised stores remain shuttered.
- With the pandemic’s intensity ebbing and flowing, Levi has moved to boost its online sales operations as shopper traffic falls around the world. The efforts are paying off, with e-commerce and digital revenue rising to 23% of revenue in the period, up from 15% the previous year.
- If conditions do not worsen, Levi expects to return to pre-pandemic revenue levels by the end of 2021, Chief Financial Officer Harmit Singh said.
Market Reaction
- Levi shares alternated between losses and gains in late trading. The stock has advanced 9.6% this year through Wednesday’s close.
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