Levis – COOPER GENERAL NEWS

Levi’s clothes can be seen on a store shelf in Miami, Florida.

Joe Raedle | Getty Images

Levi Strauss & Co. reported Wednesday that total sales were down 12% for the vacation quarter. This is an improvement over a decline of more than 20% in the previous period as the weak customer traffic in the branches was partially offset by double-digit online growth.

Stocks recently rose more than 1% in after-hours trading after initially falling more than 4%.

Chief Executive Chip Bergh told CNBC that last quarter’s results exceeded the denim maker’s internal expectations and almost met the “best-case scenario” that Levi put forward when the Covid pandemic first hit the US and many companies bothered.

“We turned very hard [direct to consumer] and in particular for e-commerce, “Bergh said in a telephone interview.” Our e-commerce business was profitable for the fourth quarter and profitable for the full year. “

Levi’s global digital sales, which include online sales of its goods at wholesale partners, represented 23% of sales in the fourth quarter, up from 15% in the year-ago period.

Here’s how Levi Strauss & Co. performed in the fourth quarter of the fiscal year compared to analysts’ expectations using refinitive data:

Earnings per share: 20 cents, adjusted compared to 15 cents, expected
Revenue: $ 1.39 billion versus $ 1.34 billion expected

For the three-month period ending Nov. 29, Levi made $ 57 million, or 14 cents per share, compared to $ 96 million, or 23 cents per share, the previous year. With no one-time cost, it earned 20 cents per share, which was better than what analysts expected 15 cents using refinitive data.

Net sales decreased 12% from $ 1.57 billion a year ago to $ 1.39 billion. That was better than the $ 1.34 billion forecast by analysts.

Global digital sales increased 34%, including sales on partner platforms like Amazon.

Levi said revenue from its wholesale partners declined 15% in the quarter, while revenue direct to consumers declined 5% due to fewer in-store visits.

As the coronavirus pandemic continues to disrupt normal business operations, around 40% of stores in Europe and 17% worldwide, including franchise-operated locations, are currently closed, according to the company.

“The recent recurrence of the virus underscores that the ultimate effects of the Covid-19 pandemic remain highly uncertain,” Levi said in his earnings announcement. “The company anticipates its business … will continue to be significantly impacted at least in the first half of 2021, and there is still the possibility of additional Covid-19 inventory and other costs.”

Levi stock was up just over 8% year over year at close of trading on Wednesday. The company has a market capitalization of $ 8.8 billion.

The full press release from Levi Strauss & Co. can be found here.

Levi’s will have a limited time collection at Target that includes over 100 housewares, apparel, and other items.

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Target will launch a limited-time collection of housewares, pet accessories, apparel, and other denim-inspired items with Levi Strauss & Co. to help build sales momentum during the coronavirus pandemic.

The new line of more than 100 items will be available in most big box retail stores and online from February 28th. It ranges from glass mugs for $ 3 each to a bar cart for $ 150, but most items cost less than $ 25.

For Levi’s, the expanded partnership is a way to strengthen relationships with a thriving retailer as apparel sales have declined and department store partners have lost ground during the pandemic. Target, on the other hand, has attracted new customers and gained more of their business while keeping its doors open as a major retailer. Online offers such as pick-up at the roadside have also grown significantly.

Target’s shares are up 64% over the past year, increasing their market value to $ 93.93 billion. The company also had a strong holiday season: like-for-like sales rose 17.2% and e-commerce sales more than doubled in November and December.

These gains have presented a different challenge to the big box retailer. The company is facing difficult sales comparisons over the coming year and investors may wonder if the pace of growth has peaked.

For Target, the limited-time collection is part of the playbook. It has long used exclusive products to drive sales and generate enthusiasm. It has worked with other popular fashion brands including Hunter and Lilly Pulitzer. It has also launched its own brands that have a fan base. These include Cat & Jack, a children’s clothing brand, and Hearth & Hand, a housewares brand founded by Chip and Joanna Gaines with Magnolia.

As a rule, the limited collections draw crowds into the shops. This time around, Target is encouraging more purchases on its website. Brian Cornell, CEO of Target, said employees will ensure customers can socially distance themselves in stores, including measuring the number inside if necessary.

The Levi’s collection is built on a growing relationship between companies. Target has been selling Levi’s value brand Denizen for about a decade. About three years ago, Cornell reached out to Levi’s CEO Chip Bergh to put the Red Tab on Target. The retailer had found that the brand – usually found in stores like Macy’s in malls – was the most popular request from Target buyers.

In 2019, Target announced some of its deals and launched Red Tab on its website. Target plans to sell the Red Tab label at 500 of its nearly 1,900 locations by autumn 2021. The curated shop displays resemble a “shop in shop”.

The aim is to add the Levi’s Red Tab label to more stores. In the shops, Levi’s has a display that resembles a shop.

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Target has worked with other companies to create goals in its branches as well. It has Disney stores in 53 stores. From the second half of this year, hundreds of them will be opening Ulta Beauty stores with a curated selection of products and staff trained as makeup and skin care consultants.

Companies started working on the collection before the pandemic, but many things – like blankets, sleepwear, an apron, and a denim dog outfit – match the way Americans now live, cooking, hanging around, and more Spending time at home with four-legged family members.

“It happens to get married to many of the trends that emerged during the pandemic, but that’s more of a coincidence than anything,” Bergh said.

The Levi’s collection includes accessories for pets, including a denim-inspired dog bed.

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More items have also been designed with sustainability in mind than any of Target’s other collaborations, using materials like durable fabrics and recycled glass.

Both CEOs said they had their eye on a favorite item in the collection – a denim-inspired Sherpa bed that they would like to buy for their dogs.

“I’ll be on Target.com as soon as this thing drops,” said Bergh.