The denim maker Levi Strauss & Co beat estimates for quarterly results driven by a boost to its online sale during the Covid-19 pandemic on Thursday while also arising its half year revenue growth forecast as it said it was banking on the rollout of Covid-19 vaccines around the world which it expects will accelerate the return to normalcy.
The better than expected quarterly performance and the rising of its quarterly dividend to 6 cents per share from 4 cents helped a 5 per cent rise in the stocks of the company.
Even with a boom in online sales in recent months amid the pandemic crisis, similar optimism about traffic returning to normal levels to their stores was expressed by a number of other apparel sellers, including Nike Inc and Kohl's Corp.
"As the vaccine rollout continues and consumer excitement returns, I am more confident than ever that we will emerge from the pandemic a stronger business," Levi Chief Executive Officer Chip Bergh said.
As of Thursday, more than 40 per cent of its stores in Europe remained closed because of the pandemic, while the rest of the stores in other parts of the world operated on reduced hours because of the restrictions that are in place because of the pandemic, Levis said.
For the first half of its fiscal 2021, the company now expects to increase its revenues by 24 per cent to 25 per cent which was higher than a range (18 per cent to 20 per cent) that was announced by the company previously, the jeans maker said.
The company also expects to achieve adjusted per-share profit for the period to be 41 cents to 42 cents, Levi also said. According to IBES data from Refinitiv, analysts on average expect a profit of 30 cents per share for the first and second quarter.
The company also reported a drop of 13 per cent in its net revenues for its first quarter that ended on February 28. However that number was also above the expectations of the analysts which was at $1.25 billion.
During its latest completed quarter, the company also reported 41 per cent growth in the revenues generated by the company from its digital sale channels which included sales from Levi's wholesale partners which helped the company to comfortably make up for the drop in revenues experienced by the company at its physical stores with store closures and less customers visiting the stores because of the pandemic.
On an adjusted basis, Levi earned 34 cents per share, above analysts' estimates of 25 cents.
(Source:www.nasdaq.com)
The better than expected quarterly performance and the rising of its quarterly dividend to 6 cents per share from 4 cents helped a 5 per cent rise in the stocks of the company.
Even with a boom in online sales in recent months amid the pandemic crisis, similar optimism about traffic returning to normal levels to their stores was expressed by a number of other apparel sellers, including Nike Inc and Kohl's Corp.
"As the vaccine rollout continues and consumer excitement returns, I am more confident than ever that we will emerge from the pandemic a stronger business," Levi Chief Executive Officer Chip Bergh said.
As of Thursday, more than 40 per cent of its stores in Europe remained closed because of the pandemic, while the rest of the stores in other parts of the world operated on reduced hours because of the restrictions that are in place because of the pandemic, Levis said.
For the first half of its fiscal 2021, the company now expects to increase its revenues by 24 per cent to 25 per cent which was higher than a range (18 per cent to 20 per cent) that was announced by the company previously, the jeans maker said.
The company also expects to achieve adjusted per-share profit for the period to be 41 cents to 42 cents, Levi also said. According to IBES data from Refinitiv, analysts on average expect a profit of 30 cents per share for the first and second quarter.
The company also reported a drop of 13 per cent in its net revenues for its first quarter that ended on February 28. However that number was also above the expectations of the analysts which was at $1.25 billion.
During its latest completed quarter, the company also reported 41 per cent growth in the revenues generated by the company from its digital sale channels which included sales from Levi's wholesale partners which helped the company to comfortably make up for the drop in revenues experienced by the company at its physical stores with store closures and less customers visiting the stores because of the pandemic.
On an adjusted basis, Levi earned 34 cents per share, above analysts' estimates of 25 cents.
(Source:www.nasdaq.com)
