Levi Strauss | Q2 2020
The pandemic on a weighted average basis set about 60% of our stores and our wholesale partner doors were closed during that period of time. When doors are closed, you’re not generating a lot of revenue. I think the positive surprise was the strength of our e-commerce business.
Transcript
us this morning and a CNBC exclusive
chip welcome back Carl nice to be back
we talked to you a couple of weeks ago
and you’ve made no secret that the
quarter was going to be tough in terms
of surprises what what stands out to you
about fiscal cue – well our this whole
second quarter it was March April and
May so if you think about that time
frame we really did take the brunt of
the pandemic on a weighted average basis
set about 60% of our stores and our
wholesale partner doors were closed
during that period of time when doors
are closed you’re not generating a lot
of revenue I think the positive surprise
was the strength of our e-commerce
business we were actually down in March
but it really I think as consumers were
really focused on necessity he says they
all went into shelter-in-place but but
our e-commerce business came back really
really strong and in May we were up 79
percent our US e-commerce business was
more than double the prior year so
really strong e-commerce business I
think we’re going to see a huge shift in
consumer behavior as a result of a
pandemic we’re seeing it now as we
reopen our stores consumers are coming
back to the stores in fact we have a lot
of stores where consumers are lining up
because we’re you know providing for
social distancing inside the store so
when consumers line up to get inside the
door that’s a really good sign on the
strength of the brand but more
importantly they’re coming in on a
mission like they are there to shop they
know what they want they’re in and out
pretty quickly our conversion is very
very high units per transaction very
very high so we knew the quarter was
going to be really really tough
it obviously shaped out that way we were
down sixty-two percent but we’re
encouraged by the strength of our
digital transformation the team also
rallied and created a lot of new
capabilities by online pickup curbside
which we now offer most of our stores
here in the US so we do expect that this
could be you know a longest recovery and
that’s why we unfortunately had to make
the announcement about producing about
15% of our corporate head count as we go
forward
