Levi sales beat estimates as COVID uncertainty persists

Kim Bhasin, Bloomberg News

Levi Strauss & Co. labels are seen on jeans for sale inside the company's flagship store in San Francisco, California, U.S., on Monday, March 18, 2019. Levi Strauss & Co.'s initial public offering, currently set at 36.7 million shares seen pricing at $14 to $16 each, is expected to price on March 20 according to the NYSE website. , 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 US$1.39 billion in the period ended Nov. 29, higher than the US$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 per cent of Levi’s store footprint in Europe currently closed. Globally, 17 per cent 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 per cent of revenue in the period, up from 15 per cent 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.

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