Business & Investment

Levi Strauss predicts disappointment as the virus resurrection closes Reuters stores

© Reuters. Levi Strauss & Co. The logo is on display in front of the IPO on the floor of the New York Stock Exchange (NYSE) in New York.

(Reuters)- Levi Strauss & Co (NYSE :) Wednesday’s first quarter results are lower than analysts expected as COVID-19’s resurgence closed denim stores in key markets and reduced its share of expansion transactions by 9%. I am.

The surge in coronavirus cases since the end of last year has reduced store traffic, newly limited capacity in shopping centers in major regions such as California, and reduced retailer sales during the critical holiday shopping season.

According to Levi, 17% of stores worldwide are still closed, and a new wave of blockades in Europe has closed 40% of the company’s footprint.

The San Francisco-based company said it expects these stores to remain closed for the rest of the quarter, hitting earnings per share by 10 to 12 cents.

Including the impact, Levi forecasts adjusted earnings per share of 20 to 24 cents in the first quarter, below expectations of 33 cents per share, according to Refinitiv IBES data.

According to the company, quarterly sales declined at a rate of teens and above in constant currency, exceeding the 11.9% decline estimate.

But if things don’t get worse, the company could return to pre-pandemic earnings levels by the end of 2021, said Chief Financial Officer Hermit Singh.

Levi also surpassed its fourth-quarter estimate, which ended November 29, due to a surge in online sales.

Total revenue for the quarter was down about 12% to $ 1.39 billion, surpassing expectations of $ 1.34 billion.

Levi earned 20 cents per share after adjustment, surpassing the estimated 15 cents per share.

The company also revived its quarterly dividend at 4 cents per share.

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Levi Strauss predicts disappointment as the virus resurrection closes Reuters stores Levi Strauss predicts disappointment as the virus resurrection closes Reuters stores

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