-=Levi Strauss (LEVI) reported earnings on Tue 6 Oct 20 (a/h)

 

Levi Strauss beats by $0.30, beats on revs

Reports Q3 (Aug) earnings of $0.08 per share, excluding non-recurring items, $0.30 better than the S&P Capital IQ Consensus of ($0.22); revenues fell 26.5% year/year to $1.06 bln vs the $822.25 mln S&P Capital IQ Consensus.

Co says it plans to guide for Q4 (Nov) on the call.

• Revenue decrease was primarily due to the impacts of the COVID-19 pandemic, including reduced traffic and ongoing closures of company-operated and third-party retail locations for portions of the quarter and in certain markets.
• Company e-commerce revenue growth of 52% partially offset the decline, while the company's global digital revenues, which includes the company's e-commerce sites as well as the online business of its pure-play and traditional wholesale customers, grew approximately 50%, and comprised approximately 24% of Q3 revenues, double what it was a year prior.
• The substantial majority of third-party retail locations have reopened globally, as well as substantially all company-operated doors and franchisee doors, albeit many remain on reduced hours; and while sales remain down compared to prior year, the company continues to mitigate ongoing traffic declines by driving meaningfully higher conversion.
• As store locations have reopened, the company's e-commerce net revenues growth has remained strong, at 52% growth for the quarter as compared to the prior year.