Levi Strauss swung to a loss last year as store closures hit revenue, but the US denim company saw a “significant sequential improvement” in Q3 sales.
For the year to 29 November, the business reported a net loss of 127 million dollars, compared to net income of 395 million dollars a year earlier.
The company saw a 23 percent drop in full-year revenue as the business, like so many others, was hit hard by months-long store closures. The denim giant reported sales of 4.45 billion dollars compared to 5.76 billion dollars a year earlier.
For the fourth quarter, the company’s revenue dropped 12 percent to 1.39 billion dollars, a significant improvement on the 23 percent decline it experienced in Q3, and ahead of the company’s expectations.
DTC and e-commerce help sales in Q4
The company’s Q4 direct-to-consumer revenue declined just five percent on a reported basis, while its e-commerce revenue jumped 38 percent with growth across all regions, partially offsetting a decline in brick-and-mortar store revenues.
Approximately 40 percent of the company’s store estate in Europe and 17 percent globally is currently closed, with others operating on reduced hours.
CEO Chip Bergh remained upbeat on the company’s performance in what he described as a “most extraordinary” year.
“The steps we took on structural costs, cash management, agility and new capabilities helped drive results far ahead of our own expectations and give me great confidence in our future,” Bergh said in a statement.
“We will double down on elevating our iconic brand, investing in direct engagement with our fans, advancing our fast-growing digital business and further diversifying our portfolio. As we continue to accelerate these strategic focus areas, we will emerge a stronger, more profitable, more agile company.”
Photo credit: Levi's, Facebook