Beating forecast of $1.29 billion, denim brand Levi’s reported second quarter sales of $1.31 billion in mid-July. Its earnings crossed the newswires at $0.07 a share, falling short of estimates of $0.12 a share. Its actual earnings, excluding some $29 million in costs related to its late March IPO, also tallied to $0.17 a share.
Levi’s second quarter sales at US wholesale accounts — mostly department stores such as Macy’s and Sears — dropped 2 per cent. To combat this decline, the brand plans to open more retail stores and ask important vendors to stock more of its products. The brand’s operating income for its Americas, European and Asia markets excluding volatile currency swings outpaced sales growth in the second quarter. Sales of its men’s products rose by 6 per cent, women’s surged by 16 per cent, bottoms gained by 8 per cent and those of tops spiked by 14 per cent.
More recently, Levi’s has rolled out collaborations with Netflix’s “Stranger Things” and Hello Kitty. For Bergh, these tie-ups are yet another sign of Levi’s ability to stay culturally relevant during a time where there is so much choice in apparel. And by being able to stay relevant, it raises the prospects of keeping the brand’s sales momentum intact.
