Levi Strauss shuts half its China stores on coronavirus outbreak, expects financial hit GlobeBusiness
Singh said the coronavirus impact was not baked into the company’s full year forecast, but will be quantified when it reports first quarter results in April.
Levi’s, which gets about 3% of its revenue from China, forecast 2020 earnings on Thursday above estimates, boosted by demand for women’s apparel in its own stores and online. With foot traffic at malls and department stores shrinking, Levi’s has been investing more in its e-commerce business, adding features designed to attract millennial and Gen Z consumers.
A new customization option on Levi’s website lets shoppers personalize their pair of jeans with custom prints and patches, helping the near 170-year old company pull in more customers looking to add a personal touch to their denim. The company, however, missed fourth quarter revenue estimates, hurt by plunging sales at department stores and protests in Hong Kong which dented demand in the Asian shopping hub.Fourth quarter net revenue fell 1.4% to $1.57 billion, compared with analysts’ estimates of $1.58 billion, according to IBES data from Refinitiv.The company forecast adjusted 2020 profit of $1.18 per share to $1.22 per share above Wall Street estimates of $1.17.
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