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Levi’s sales slip 13% in fiscal Q1 due to COVID-19 restrictions

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Levi Straus & Co. (NYSE: LEVI) said on Thursday that its sales and earnings in the fiscal first quarter came in better than what analysts had anticipated, despite the ongoing COVID-19 crisis that continues to make it harder to reopen stores for the public.

The Coronavirus pandemic has so far infected more than 31 million people in the United States and caused over half a million deaths.

Levi Strauss shares that you can learn to buy online here closed the regular session about 1.5% up on Thursday. In after-hours trading, the stock was reported just under 4% up at £18.89 per share. In comparison, Levi’s had started the year 2021 at a much lower £14.31 per share.

Levi’s Q1 financial results versus analysts’ estimates

Levi’s reported £104.11 million of earnings in the first quarter that translates to 25.48 pence per share. In the comparable quarter of last year, its earnings stood at a higher £111.39 million, or 26.94 pence per share. In the prior quarter (Q4), Levi Straus had registered £41.71 million of earnings.

Adjusted for non-recurring items, the American clothing company earned 24.75 pence per share in the quarter that concluded in February. Levi’s posted £950 million of sales in Q1 that represent an annualised decline of 13%.

According to FactSet, experts had forecast the company to record £910 million of sales in the recent quarter. Their estimate for adjusted per-share earnings was capped at a lower 17.47 pence. In separate news from the United States, car manufacturers Ford Motor and General Motors expressed plans of further slashing vehicle production in North America due to semiconductor chip shortage.   

Levi’s guidance for the fiscal first half

For the fiscal first half, Levi’s now forecasts up to a 25% year over year increase in its sales. It expects its adjusted earnings per share in H1 to fall in the range of 29.85 pence to 30.58 pence. The San Francisco-based company’s outlook assumes no significant impact from the ongoing health emergency in the upcoming months.

The New York Stock Exchange listed company declared 4.37 pence per share of a dividend on Thursday – an increase from 2.91 pence per share.

Levi Strauss & Co. performed slightly upbeat in the stock market with an annual gain of close to 5%. At the time of writing, the company that was founded in 1853 is valued at £7.28 billion.

The post Levi’s sales slip 13% in fiscal Q1 due to COVID-19 restrictions appeared first on Invezz.

Source: INVEZZ

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