Levi Strauss & Co. (NYSE:LEVI) said Thursday that shoppers are stocking up on jeans in new sizes and styles in the U.S. and China as they emerge from their homes during the pandemic.
The momentum both in stores and online boosted its fiscal second-quarter earnings and revenue ahead of analysts’ expectations. Although sales were still down 3% from 2019, the retailer anticipates fiscal third-quarter sales are on track to top pre-pandemic levels. That was something Levi previously didn’t expect to achieve until the fourth quarter.
While Levi raised its revenue and profit outlook for the rest of the year, the company cautioned it assumes the COVID pandemic doesn’t worsen around the world.
Levi said it swung to a profit of $65 million, or 16 cents per share, from a net loss of $364 million, or 91 cents per share, a year earlier. Excluding one-time adjustments, Levi earned 23 cents per share, topping analysts’ estimates for nine cents.
Levi’s revenue surged 156% to $1.28 billion from $498 million a year earlier. That beat expectations for $1.21 billion.
Sales in the U.S. and China surpassed 2019 levels, but were still down on a two-year basis in Europe due to ongoing store closures related to the health crisis. Roughly a third of Levi’s European stores, and 17% of its global locations, were closed during the period.
LEVI shares gained 95 cents, or 3.4%, to $28.95 early Friday.