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Levi Strauss showed resilience in Q3

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Miguel A. Rodriguez
Miguel A. Rodriguez
07 October 2020
Higher-than-expected revenue figures for Levi in Q3

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


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.