One of the most prominent American apparel producers, Levi Strauss impressed Wall Street with its quarterly earnings figures.
In Q3, Levi reported earnings per share of 8 cents. Analysts were looking for a loss per share of 22 cents. It topped last year's $822.2 million revenue, this quarter's figures coming in at $1.06 billion.
The denim maker reported a 52% growth in online sales. This strong performance is expected to continue into the holiday quarter if the pandemic doesn't worsen.
Levi's net income fell to $27 million, from $124 million previously reported.
"All of the actions that we took, the tough choices that we had to make very early in the pandemic, are really starting to pay off," CEO Chip Bergh stated in an interview. The company had to slash 15% of its global workforce, or 700 jobs, to reduce costs.
In Q4, Levi will stop paying dividends, but if the overall sales increase, the payment could be resumed in 2021.
Following the announcement, Levi Strauss's stock price jumped more than 12%.
Sources: cnbc.com, marketwatch.com