Levi Strauss beats quarterly earnings estimates on on-line toughness

Jan 27 (Reuters) – Denim maker Levi Strauss & Co defeat analysts’ estimates for quarterly income on Wednesday, as increased online gross sales cushioned the blow from a slump in keep targeted traffic because of to the COVID-19 pandemic.

Income by way of retailers’ e-commerce channels jumped during the holiday season as buyers staying at household selected to expend their disposable revenue and stimulus income on apparel, electronics, and items, alternatively than traveling or ingesting out.

Levi stated on the web profits, which consists of gross sales on third-party retailers’ web-sites and apps, rose 34% in the quarter.

In general income fell about 12% to $1.39 billion in the fourth quarter finished Nov. 29, as a surge in coronavirus situations at the conclude of final yr pressured store closures in key marketplaces and battered by now weak retailer traffic.

But the figure was greater than anticipations of $1.34 billion, according to Refinitiv IBES knowledge.

Levi stated about 40% of its shops in Europe have been still shuttered and that it expects its revenues and earnings to continue on to be considerably strike for at minimum the initial 50 % of 2021.

Nonetheless, the firm could return to pre-pandemic earnings concentrations by the stop of 2021 if ailments do not worsen, Main Economic Officer Harmit Singh explained.

Net income attributable to the San Francisco, California-dependent business fell to $56.7 million, or 14 cents for each share, from $95.3 million, or 23 cents for every share, a calendar year previously.

Levi reinstated its dividend at 4 cents per share. (Reporting by Uday Sampath in Bengaluru Modifying by Aditya Soni)