The company believes that sales will return to pre-pandemic level by the fourth quarter
One of the world’s largest apparel companies and global leader in jeanswear, Levi Strauss & Co., reported its figures for the first quarter of 2021.
For the quarter ended February 28, Levi’s had an adjusted EPS of 34 on revenues of $1.31 billion. Both figures topped the 25 cents and $1.25 billion, respectively, estimates. However, the company’s net income declined to $142.5 million from a previous $152.7 million. Levi’s believe that the sales will return to the pre-pandemic levels by Q4.
According to the retailer, the drop was caused by the reduced foot traffic in stores during the pandemic and stores closure – in Europe, 40% of Levi’s stores are currently closed, while the rest are operating on reduced hours. Moreover, the figures will continue to be “impacted at least through the second quarter of 2021.”
For the future, sales are expected to grow as much as 25%, and the adjusted EPS to reach 42 cents. Also, the company plans to expand in the US to boost its direct-to-customer services. CEO Chip Bergh announced that the company would open 40 new stores and 200 outlet locations. “It gives us an opportunity to secure great locations at great leases, and we’re capitalizing on that,” he stated.
After the news hit the wires, Levi’s stock price gained more than 5%. Since the beginning of the year, its stocks gained 25%.
Sources: levistrauss.com, cnbc.com