Shares of Levi Strauss rose more than 12 percent Tuesday after the manufacturer of denim clothing unexpectedly reported quarterly profit and sales far exceeding expectations, thanks to growth in online sales.
On Tuesday the world’s largest manufacturer of denim and casual clothing, Levi Strauss (LEVI) reported better-than-expected, the results of its 3rd fiscal quarter, which ended on August 23.
The company reported a profit of $27 million, after losses of $364 million in the second quarter when Levi was forced to cut 15% of its staff.
Levi the third quarter showed significant improvement, although the figures are still far from last year, and the management still notes the decline in traffic at stores.
Levi reported earnings per share of $0.08, which to $0.30 more than the analyst estimate of -$0.22 loss per share.
Total revenue was $1.06 billion, which is 27% below last year but above the analytical forecast of $822,24 million to See the history of Levi revenues and profits for the previous periods via the link.
The company said that this quarter she had a positive cash flow, “which reflects the company’s attention to financial discipline, cost control, cash and working capital”.
Despite the decline in revenues in the 3rd quarter compared to last year, the leadership of Levi remained fairly current results, noting a 50% increase in digital sales, with the result that their share in total sales was about 24%, more than double a year earlier.
Levi also noted the rising sales of women’s goods, which today has grown to 37% of the total sales. The company said that its long-term goal for the women’s category is 50% of total sales.
Guide Levi told investors that predicts decline in revenue in the fourth quarter to 14-15% if the conditions of a pandemic will not significantly deteriorate, while analysts on average is expected to fall on of 19.62%.
The company forecast profit per share ranging from $0.14 to $0.16 a, which corresponds to the average estimates.
On Tuesday, Levi and her longtime partner Tardet (TGT) announced that next autumn is one of the largest physical retailers USA expand their offers label Levi’s Red Tab more than 500 stores. The Red Tab is now available in 140 physical stores and online sales Target.