NKE - The Return Of The Everlasting Denim Craze Was Not Enough To Boost Levi's Sales | Benzinga
On Wednesday, Levi Strauss & Co. (NYSE: LEVI) reported its fiscal second quarter results. While Levi managed to top Wall Street estimates on the earnings front due to its direct sales channel and cost cutting initiatives, revenue fell short. Upon the report, shares fell about 15% during extended trading.
Fiscal Second Quarter Highlights
For the quarter ended on May 26th, Levi reported that revenue rose about 8% YoY to $1.44 billion, coming short of LSEG’s consensus estimate of $1.45 billion. However, when taking into account that during last year’s comparable quarter, Levi shifted its wholesale shipments from its fiscal second quarter into its fiscal first quarter which lowered sales by about $100 million, along with exit of Levi’s Denizen business, sales only grew about 1% even though consumers are stocking up on denim items.
When segmenting revenue, direct-to-consumer sales expanded 8% while online sales grew 19%. On the other hand, wholesale revenue grew 7%, but when excluding the shift in timing of wholesale orders, it actually dropped 4% .
For the May quarter, Levi earned a net income of $18 million, or 4 cents per ...