Levi Strauss & Co., the American denim bigwig, is out with its Q3 report and the sales and profits are better than what analysts had predicted for the quarter.
Despite a slump of 27 per cent in sales to clock US $ 1.06 billion, it’s still better than the analysts’ and experts’ prediction of US $ 822 million.
Notably, the profit and gross margin too were better than what analysts estimated.
The company’s investment in its e-commerce business also seems to have worked in a big way. The third quarter has seen its digital sales grow by 52 per cent – that’s a quarter of the entire revenue during the period.
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Besides sales on its own websites, it also includes sales from Levi’s wholesale allies like Amazon.
The shares of Levi Strauss & Co. jumped by 9 per cent on Tuesday immediately after it announced the surge in its e-commerce business.
Pleased over the performance, CEO Chip Bergh, in an interaction with media, said that cost-cutting measures and plans to be a ‘smaller business in the short term’ have helped the company.
The CEO said that Q4 would definitely be better than Q3 unless there is return of the deadly pandemic. He, however, added that it will take some time before the business reaches where it was in 2019.
The company also stated that its inventories increased by 1 per cent by the end of Q3 from compared to what it was a year back, thereby placing them in a healthy position ahead of the upcoming holidays.
