Levi Strauss & Co. reported on Wednesday (Oct. 7) that net revenues dropped 27 percent on a reported basis for Q3, noting that the fall was mainly because of the coronavirus pandemic’s effects, according to an announcement.
Levi reported that company online shopping revenue growth of 52 percent partly mitigated the drop. The firm said its worldwide digital revenues, which encompasses “the company’s e-commerce sites as well as the online business of its pure-play and traditional wholesale customers,” expanded by roughly 50 percent in contrast to the same timeframe the year before.
As the firm contends with coronavirus and its effect, Levi Strauss & Co. President and CEO Chip Bergh said it is focused on “elevating our already iconic brand, investing in digitization, and accelerating our efforts to diversify across geographies, product categories and distribution channels, including doubling down on our fast-growing direct-to-consumer business.”
Levi reported $2 billion in total available liquidity and $1.4 billion cash at quarter end.
The firm reported that its worldwide digital business accounted for roughly 24 percent of Q3 revenues, which was two times what it was a year before, as consumer spending kept migrating in the direction of digital shopping experiences because of the evolving retail landscape due to COVID-19.
“The strength of the Levi’s brand is demonstrated in our gross margins, and revenues have been recovering from COVID-19 related disruptions faster than expected, driven by e-commerce, international and our women’s business, particularly within Europe and in the United States,” Levi Strauss & Co. Executive Vice President and CFO Harmit Singh said in the announcement.
As for its overall results, Levi reported adjusted diluted earnings per share (EPS) of 8 cents on reported revenues of $1.1 billion.
Thew news comes as COVID-19 has provided a boost to social commerce, and Levi’s previously went public with its participation in the “Shop Now” initiative of TikTok. The brand teamed with TikTok influencers to make unique denim with Future Finish 3-D denim customization technology via the Haus Miami activation.