Levi Strauss reports revenues down to $498 mn in Q2 FY20

Levi Strauss & Co, a US-based apparel company and leader in jeans, reported 62 per cent revenues decline to $497.5 million in second quarter (Q2) FY20, ended on May 24, 2020 compared to revenue of $1,312.9 million in same period last year. Company incurred a net loss of $363.5 million during the quarter compared to net income of $28.5 million in Q2 FY19.

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, reported 62 per cent revenues decline to $497.5 million in second quarter (Q2) FY20, ended on May 24, 2020 compared to revenue of $1,312.9 million in same period last year. Company incurred a net loss of $363.5 million during the quarter compared to net income of $28.5 million in Q2 FY19.#

Gross profit for Q2 FY20 were $169.6 million (Q2 FY19: $700.4 million). Selling, general and administrative (SG&A) expenses were $550.5 million ($637.5 million). Operating loss for the quarter were $448.2 million compared to operating income of $62.8 million in Q2 FY19.

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, reported 62 per cent revenues decline to $497.5 million in second quarter (Q2) FY20, ended on May 24, 2020 compared to revenue of $1,312.9 million in same period last year. Company incurred a net loss of $363.5 million during the quarter compared to net income of $28.5 million in Q2 FY19.#

“We started the year with strong momentum, but the global pandemic and economic crises had a significantly negative impact on our second quarter results, as our stores and most wholesale doors were closed around the world for the majority of the quarter,” Chip Bergh, president and chief executive officer of Levi Strauss & Co, said in a press release.

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, reported 62 per cent revenues decline to $497.5 million in second quarter (Q2) FY20, ended on May 24, 2020 compared to revenue of $1,312.9 million in same period last year. Company incurred a net loss of $363.5 million during the quarter compared to net income of $28.5 million in Q2 FY19.#

“The pandemic is accelerating retail landscape shifts and consumer behaviour in ways that play to the strength of the Levi’s brand. And we are doubling down on our digital transformation, incorporating the power of AI and data science, and leveraging our iconic brands to have an even stronger focus on Gen Z and sustainability. We believe this will enable us to further grow our market leadership position and emerge from this crisis a stronger company,” Bergh said.

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, reported 62 per cent revenues decline to $497.5 million in second quarter (Q2) FY20, ended on May 24, 2020 compared to revenue of $1,312.9 million in same period last year. Company incurred a net loss of $363.5 million during the quarter compared to net income of $28.5 million in Q2 FY19.#

Company stated that the decrease in sales during the quarter was partially offset by 25 per cent growth in e-commerce business, including the benefit of accelerating its omni-channel initiatives, which after declining in March began to recover in April and accelerated to nearly 80 per cent growth in May compared to the same month of the prior year. Company-operated e-commerce comprised 15 per cent of total company net revenues in the second quarter, compared to 5 per cent in the second quarter of the prior year.

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, reported 62 per cent revenues decline to $497.5 million in second quarter (Q2) FY20, ended on May 24, 2020 compared to revenue of $1,312.9 million in same period last year. Company incurred a net loss of $363.5 million during the quarter compared to net income of $28.5 million in Q2 FY19.#

For the second quarter, revenues in US declined 59 per cent to $283 million ($693 million) across channels and brands due to the impacts of Covid-19 and the temporary closure of company-operated and third-party retail locations. In Europe, revenues dropped 68 per cent to $129 million ($398 million). While, the revenues in Asia fell 61 per cent to $86 million ($222 million).

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, reported 62 per cent revenues decline to $497.5 million in second quarter (Q2) FY20, ended on May 24, 2020 compared to revenue of $1,312.9 million in same period last year. Company incurred a net loss of $363.5 million during the quarter compared to net income of $28.5 million in Q2 FY19.#

“We are encouraged by early signs of recovery, as roughly 90 per cent of our company-operated and franchisee doors have now reopened globally, with nearly 40 per cent of our company-operated stores comping positive as we exited the month, which in combination with our cost and working capital actions resulted in positive cash flow generation in June,” Harmit Singh, executive vice president and chief financial officer of Levi Strauss & Co, said.