Levi Strauss & Co logo

LEVI - Levi Strauss & Co News Story

$12.76 -0.0  -0.2%

Last Trade - 14/08/20

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £3.88bn
Enterprise Value £4.10bn
Revenue £3.84bn
Position in Universe 1117th / 6381

UPDATE 1-Levi Strauss warns of weak second half on pandemic woes, to cut 700 jobs

Tue 7th July, 2020 11:16pm
(Adds details from conference call, share movement)
    July 7 (Reuters) - Levi Strauss & Co  LEVI.N  on Tuesday
cautioned its business would be hit in the second half of the
year, even as the denim apparel maker's sales have been
improving at its reopened stores, following government-mandated
COVID-19 lockdowns. 
    The company also said it would cut about 700 positions, or
roughly 15% of its workforce, in non-retail, non-manufacturing
segments that would help it save $100 million annually.
    Met with temporary closure of its own stores as well as
partner outlets, Levi introduced curbside pickup and started
fulfilling online orders at its stores as customers turned to
online shopping to avoid contact with people.    
    The company reported a 25% increase in its online business
in the second quarter ended May 24, with a month-over-month rise
of nearly 80% in May.  urn:newsml:reuters.com:*:nBw5y7V1ga
    Levi added that weekly sales performance in company-operated
stores was improving sequentially, as productivity in the final
week of June reached 80% compared to a year earlier.
    Still, Chief Executive Officer Chip Bergh said that he was
"cautiously optimistic" about the early trends.
    The company also expects its margins for the rest of the
year to be under pressure as it tries to offload excess
inventory that remained unsold during the lockdowns.
    Shares of the San Francisco-based company, which have lost
about a quarter of their value since the start of the year, fell
4% in extended trading.
    Net revenue in the second quarter fell 62% to $497.5
million, but beat analysts' expectations of $485.5 million,
according to IBES data from Refinitiv. 
    Levi reported net loss attributable to the company of $363.5
million compared with a profit of $28.2 million, a year earlier,
largely due to $242 million in restructuring charges and
inventory costs.
    On an adjusted basis, the company posted a loss of 48 cents
per share, narrower than expectations.
        


    

 (Reporting by Nivedita Balu and Shanti Nair in Bengaluru;
Editing by Vinay Dwivedi)
 ((Nivedita.Balu@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6749 4822/ Twitter: @niveditabalu;))
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