Denim maker Levi Strauss & Co beat analysts’ estimates for quarterly revenue on Wednesday, as higher online sales cushioned the blow from a slump in store traffic due to the COVID-19 pandemic.
Sales through retailers’ e-commerce channels jumped during the holiday season as customers staying at home chose to spend their disposable income
and stimulus money on clothing, electronics, and gifts, rather than traveling or eating out.
United Colors of Benetton Levi said online revenue, which includes sales on third-party retailers’ websites and apps, rose 34% in the quarter.
Overall revenue fell about 12% to $1.39 billion in the fourth quarter ended Nov. 29, as a surge in coronavirus cases at the end of last year forced store closures in major markets and battered already weak store traffic.
But the figure was higher than expectations of $1.34 billion, according to Refinitiv IBES data. Levi said about 40% of its stores in Europe were still shuttered and that it expects its revenues and earnings to continue to be significantly hit for at least the first half of 2021.
However, the company could return to pre-pandemic revenue levels by the end of 2021 if conditions do not worsen, Chief Financial Officer Harmit Singh said.
Net income attributable to the San Francisco, California-based company fell to $56.7 million, or 14 cents per share, from $95.3 million, or 23 cents per share, a year earlier. Levi reinstated its dividend at 4 cents per share.
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