Levi Strauss | COVID-19
The denim maker Levi Strauss reported weaker sales (-62%) for the second quarter, which have been severely hit by the closure of stores during covid-19 crisis. The company also announced 700 layoffs in an attempt to cut costs related to the pandemic
Transcript
the denim maker levi strauss reported
weak sales for the second quarter
as the company was severely hit by the
closure of stores during the covid 19
crisis
revenue plunged by 62 percent to 498
million dollars
versus the 1.31 billion dollars in the
same period in 2019
adjusted eps came in at 0.48 dollars
and the company reported a net loss of
364 million dollars
levi’s also announced it will cut about
15 percent of its global corporate
workforce
impacting about 700 jobs in a bid to cut
costs during the corona virus pandemic
focusing on the performance across the
regions sales in the americas region
dropped by 59 percent
but the company saw the worst declines
in europe minus 68 percent
and asia minus 61 percent
not even an increase in online sales
plus 23 percent
accounting for 15 of total revenue was
enough to offset the disruption
caused by the pandemic today 90 percent
of levi’s stores have reopened worldwide
however traffic and sales are still far
from the levels achieved last year
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the company stock closed at 13.83
on the 7th of july 2020 over the last 12
months it has lost
40.4 percent morningstar rates fair
value estimate for the company at 15.44
and considers the stock undervalued
factset records a 12-month target price
between 10 and 25 dollars
according to factset consensus seven
analysts have been buy rating on the
stock
two hold and one cell
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