- Levi's posts £1.22 billion in revenue in the first quarter versus £1.19 billion expected.
- The clothing company made 32.44 pence of earning per share versus 28.38 pence expected.
- CEO Charles V Bergh withdrew the full-year guidance due to the rising COVID-19 uncertainty.
Levi Strauss & Co. (NYSE:LEVI) released its quarterly performance results on Tuesday. Beating analysts’ estimates for earnings and revenue, the clothing company was reported trading 3% up in the stock market in after-hours trading on Tuesday.
At £9.93 per share, Levi’s is still trading around 35% down year to date. Its performance in 2019 wasn’t reported any better either with an annual gain of less than 1%. At the time of writing, Levi’s has a market cap of £3.88 billion and a price to earnings ratio of 12.43.
Levi’s Financial Results Versus Analysts’ Estimates
According to Refinitiv, analysts had expected the clothing company to post £1.19 billion in revenue in the first quarter. Their estimate for earnings per share (EPS) was capped at 28.38 pence. In its quarterly financial report on Tuesday, however, Levi’s boasted a higher £1.22 billion in revenue in the recent quarter and announced to have made 32.44 pence per share in Q1.
Levi’s also said on Tuesday that its sales were upbeat in the Black Friday week. It, however, attributed a £16.22 million hit to its net quarterly revenue to the ongoing Coronavirus pandemic.
At £124 million, Levi’s net income in the first quarter was higher than £119.20 million that was recorded in the same quarter last year. The company generated £1.22 billion in revenue in Q1 versus £1.17 billion last year.
CEO Charles V Bergh also withdrew the full-year guidance on Tuesday. According to the Chief Executive Officer, the rising uncertainty ascribed to the health crisis makes it hard for the company to give meaningful financial guidance at the moment.
Levi’s To Furlough Its U.S Retail Workforce
Nonetheless, the company expects a significant hit to its financial performance in the second quarter as its stores in North America and Europe remain closed due to the flu-like virus. To cut costs and maintain its financial stature, the company also plans on placing its entire retail workforce (roughly 7,300 employees) in the U.S on furlough.
As China slowly returns to work after the pandemic, Levi’s highlighted all of its stores except six in Greater China to have been reopened to the public. It’s Wuhan location which is its largest in China has also resumed business. Traffic at its stores, the company added, has not yet recovered to year-ago levels, but the performance is getting better every week. According to Bergh, Levi’s online unit continues to account for the majority of its sales.