default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Levi’s Shares Rise as Strong Demand Prompts Forecast Boost

Levi's quarterly results beat Wall Street estimates on Wednesday.
A Levi's store in Germany. Shutterstock. (Shutterstock)

Levi Strauss & Co. shares rose after the denim maker said it expects strong sales growth in the first half of the year, signaling that pent-up demand could spur a post-pandemic retail recovery.

The company sees net revenue jumping 24 percent to 25 percent in the first half of fiscal 2021 compared with the same period a year ago, it said Thursday in a statement. That’s up from a previous projection of 18 percent to 20 percent. Adjusted earnings will be 41 cents to 42 cents a share for the first two quarters this year, topping the average analyst estimate compiled by Bloomberg.

Levi is the latest retailer showing signs that it sees consumers spending more later in the year as vaccine distribution continues and pandemic lockdowns end. Macy’s Inc. and Kohl’s Corp. have said they expect similar patterns.

“Our outlook going forward has improved based on the strong demand signals we are seeing in the marketplace,” Harmit Singh, Levi’s chief financial officer, said in the statement as the company reported first-quarter earnings.

Net sales in the quarter ending Feb. 28 fell 13 percent, Levi said. Its digital business was a bright spot, however, growing about 41 percent compared to the same period the prior year. That revenue accounted for about a quarter of the company’s net sales for the quarter.

The shares climbed 3.2 percent as of 4:43 p.m. in postmarket trading in New York.

By Jordyn Holman


In This Article
Topics

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Chronicle the ‘Retail Apocalypse’ and emerging retail models, including DTC brands.

When the American sportswear retailer announced the return of its controversial founder as CEO Wednesday, investors were perplexed. BoF unpacks why Plank may be back — and the challenges that lie ahead in his bid to transform its fortunes.



By investing in an elevated product and shopping experience, Spanish retailers Inditex and Mango are seeing tremendous growth despite fierce competition from the likes of Temu and a cash-strapped consumer.


The ByteDance-owned app’s e-commerce play has been met with mixed response from users. Still, sales seem to keep ticking up.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional Summit - New Frontiers: AI, Digital Culture and Virtual Worlds - March 22, 2024