- Levi Straus swings back to profit in the fiscal third quarter.
- The clothing company reports £850 million of sales in Q3.
- Digital sales came in 52% higher on a year over year basis.
Levi Strauss & Co. (NYSE: LEVI) published its earnings report for the fiscal third quarter on Tuesday after the bell. The company said online sales showed resilience in recent months amidst the Coronavirus pandemic. Consequently, it concluded the quarter in profit and registered sales that blew past Wall Street estimates.
Shares of the company were reported trading over 12% up in extended trading on Tuesday. Levi’s is now trading at £12.64 per share that translates to an about 20% decline year to date in the stock market after recovering from a low of £7.37 per share in March when the impact of COVID-19 was at its peak. Confused about choosing a reliable stockbroker to trade online? Here’s a comparison of the top few to make selection easier for you.
Levi’s Q3 financial results versus analysts’ estimates
Levi’s expressed confidence on Tuesday that performance has remained robust in the current quarter to date. For the third quarter, it reported £20.93 million of net income that translates to 5.43 pence per share. In the comparable quarter of 2019, it had earned a much higher £96.14 million or 23.26 pence per share.
Adjusted for non-recurring items, the American clothing company registered 6.20 pence of earnings per share. In terms of sales, Levi’s posted £850 million in the recent quarter, down from £1.16 billion in the same quarter last year. The San Francisco-based company launched Levi’s SecondHand this week that will sell used jeans and jackets on Levi.com.
According to FactSet, experts had anticipated the company to print an even lower £637.33 million in Q3 on 23.26 pence of GAAP loss per share. Levi’s said in July that it will cut its global corporate workforce by roughly 15% that will affect close to 700 jobs in total.
Levi’s says digital sales came in 52% higher in the third quarter
Thanks to cost controls, financial discipline, cash and working capital, Levi’s added, its cash flow remained positive in the third quarter. Levi’s also highlighted in its report on Tuesday that its digital sales noted a 52% annualised growth in the recent quarter.
Other prominent figures in Levi’s financial report on Tuesday include a 29% decline in wholesale revenue, and a 22% decline in direct-to-consumer sales. Net sales in the Americas were down 29%, in Asia by 42%, and in Europe by 16%.
At the time of writing, Levi Strauss & Co. is valued at £4.54 billion.