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.

Market Reaction

  • Levi shares alternated between losses and gains in late trading. The stock has advanced 9.6 per cent this year through Wednesday’s close.