Levi Strauss Reports Q2 Earnings Miss, Accelerating E-Commerce Growth

Levi Strauss LEVI reported quarterly losses of 48 cents per share on Tuesday, which missed the analyst consensus estimate by 3 cents.

The company reported quarterly sales of $498 million, which missed the analyst consensus estimate of $574.13 million by 13.26%. This is a 62.07% decrease over sales of $1.31 billion the same period last year.

"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 CEO Chip Bergh.

Bergh says the company is accelerating its activation in the e-commerce space and proactively cutting costs and finding innovative ways to connect the Levi's brand with its fans.

"As part of our response, to enable us to become a leaner and more market-responsive organization, as well as give us greater confidence in our cost structure given the uncertainties around the impact of the virus, we have made the difficult decision to reduce our non-retail, non-manufacturing workforce by about 700 positions, or roughly 15 percent, which we expect will generate annualized savings of $100 million," he said.

Levi Strauss shares closed down 4.02% at $13.83 on Tuesday. The stock has a 52-week high of $23.74 and a 52-week low of $9.09.