Levi Strauss & Co’s optimistic full-year profit outlook fuelled by ‘Quick Demand Rebound’
10th July 2021, Mumbai:
The quick rebound in demand for its jeans, tops and jackets have encouraged Levi Strauss & Co to forecast a strong full-year profit. The company has been witnessing an increased demand for its loose-fitting jeans and street clothes as customers start refreshing their wardrobes following months-long lockdowns and COVID-19-related restrictions.
Levi is also benefiting from its collaborations with a slew of brands, including Valentino, and its push toward direct-to-consumer sales that largely helped boost its adjusted gross margin by 670 basis points to 58.2 per cent in the second quarter.
Lower promotions, price increases and sourcing savings also helped the company boost profit margins.
The Denizen and Dockers brands' owner forecast fiscal 2021 per-share profit between $1.29 and $1.33, above estimates of $1.15. It also forecast second-half revenue to be above 2019 pre-pandemic levels.
Net revenue more than doubled to $1.28 billion in the second quarter ended May 30, beating Refinitive IBES estimates of $1.21 billion. Excluding items, Levi earned 23 cents per share, versus estimates of 9 cents.
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