Levi Strauss forecast disappoints as virus resurgence shutters stores
The Levi Strauss & Co. logo is seen on display ahead of IPO on floor of New York Stock Exchange (NYSE) in New York
(Reuters) – Levi Strauss & Co on Wednesday forecast first-quarter results below analysts’ estimates as the resurgence of COVID-19 shutters the denim maker’s stores in major markets, sending its shares 9% lower in extended trading.
The spike in coronavirus cases from late last year has led to lower traffic at stores and fresh capacity restrictions for shopping centers in key regions such as California, denting retailers’ sales during the crucial holiday shopping season.
Hibbing, MN, USA / 93.9 WTBX
Jan 27, 2021 3:16 PM
(Reuters) - 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.
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.