Levi’s second quarter results down 62%, e-commerce up 25%
10/07/2020
It could have been worse, though, as the company said drop in store sales was offset by the company’s e-commerce business, which grew 25% in the same period. Online sales had sequential month-over-month acceleration to nearly 80% growth for the month of May.
On a more positive note, as stores have reopened, Levi’s said, performance has been doing better than even the company expected.
“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,” said Chip Bergh, president and CEO of Levi Strauss & Co. “I’m proud of how the team stepped up in response, accelerating our activation of key e-commerce and omni-channel capabilities, proactively cutting costs and managing cash smartly, and finding innovative ways to connect the Levi’s brand with its fans.”
He said the company has become a “leaner and more market-responsive organisation”. Unfortunately, he added, the company has had to cut around 700 non-retail, non-manufacturing jobs (about 15%), which is expected to generate annualised savings of $100 million.
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