US clothing company Levi Strauss & Co reports Q1 FY21 sales of $1.3 bn

Levi Strauss & Co, a US-based apparel company and leader in jeans, has reported 13 per cent sales decline to $1.30 billion in its first quarter (Q1) FY21 ended on February 28, 2021 compared to the sales of $1.50 billion in the same period previous fiscal. The company’s net income for the quarter was $142.5 million (Q1 FY20: $152.7 million).

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, has reported 13 per cent sales decline to $1.30 billion in its first quarter (Q1) FY21 ended on February 28, 2021 compared to the sales of $1.50 billion in the same period previous fiscal. The company's net income for the quarter was $142.5 million (Q1 FY20: $152.7 million).#

“We've started the year strong, beating our internal expectations even as we are lapping a particularly good quarter in the prior year," Chip Bergh, chief executive officer of Levi Strauss & Co, said in a press release. “Our strong results this quarter were driven by faster-than-expected recovery in our business from our relentless focus on the priorities that are driving outsized performance. We continue to lean into our strategies – leading with our brands, investing in direct-to-consumer and diversifying our business – while still operating prudently to manage the ongoing uncertainty, especially in Europe.”

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, has reported 13 per cent sales decline to $1.30 billion in its first quarter (Q1) FY21 ended on February 28, 2021 compared to the sales of $1.50 billion in the same period previous fiscal. The company's net income for the quarter was $142.5 million (Q1 FY20: $152.7 million).#

Gross profit for Q1 FY21 dropped to $760.0 million ($839.3 billion), while selling, general and administrative (SG&A) expenses were $582.9 billion ($660.5 billion). Company’s operating income marginally dropped to $177.1 million ($178.8 million).

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, has reported 13 per cent sales decline to $1.30 billion in its first quarter (Q1) FY21 ended on February 28, 2021 compared to the sales of $1.50 billion in the same period previous fiscal. The company's net income for the quarter was $142.5 million (Q1 FY20: $152.7 million).#

Regionally, Levi Strauss & Co’s sales in Americas fell 14 per cent to $641 million ($746 million) which was partially offset 15 per cent growth in company operated e-commerce business, including the benefit of accelerating omni-channel initiatives, as well as growth of US wholesale driven by strength in the Levi’s and Signature brands, as company stated in the release. Sales in Europe dropped 16 per cent to $429 million ($513 million), while sales in Asia came down 5 per cent to $235 million ($248 million).

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, has reported 13 per cent sales decline to $1.30 billion in its first quarter (Q1) FY21 ended on February 28, 2021 compared to the sales of $1.50 billion in the same period previous fiscal. The company's net income for the quarter was $142.5 million (Q1 FY20: $152.7 million).#

Wholesale net revenues for Q1 FY21 decreased 4 per cent, reflecting strong performance in the company’s global digital business. Direct-to-consumer net revenues declined 26 per cent, whereas direct-to-consumer revenues were driven by lower traffic to brick-and-mortar stores due to the pandemic, particularly in tourist locations, which comprise a substantial portion of the company’s brick and mortar network. The brick-and-mortar decline was partially offset 25 per cent growth in company operated e-commerce business, including the benefit of accelerating omni-channel initiatives.

 

Levi Strauss & Co, a US-based apparel company and leader in jeans, has reported 13 per cent sales decline to $1.30 billion in its first quarter (Q1) FY21 ended on February 28, 2021 compared to the sales of $1.50 billion in the same period previous fiscal. The company's net income for the quarter was $142.5 million (Q1 FY20: $152.7 million).#

“We are banking the outperformance and our outlook going forward has improved based on the strong demand signals we are seeing in the marketplace. We're delivering substantial gross margin expansion while holding our cost base in-line with 2019 and investing to accelerate growth. This gives me confidence we'll achieve our adjusted EBIT margin objective of 12 per cent-plus once revenues have returned to pre-pandemic levels,” Harmit Singh, chief financial officer of Levi Strauss & Co, said.