San Francisco-based Levi Strauss lost $ 364 million in its second fiscal quarter, which ended in late May, compared with second quarter earnings of $ 29 million in the previous year, said the company.
Revenues totaled $ 498 million in the second quarter, down 62% from $ 1.31 billion in the same period last year.
Levi Strauss has decided to fire 700 workers, which equates to 15 percent of its workforce worldwide, the company announced on Tuesday.
The big problem? During 10 of the 13 weeks in the second quarter, most Levi Strauss stores and most stores operated by the company’s wholesale partners were closed due to closures related to coronavirus.
Online merchandise sales were not enough to significantly support Levi Strauss. “Although our online sales accelerated, it was not enough to offset the impact on revenue from closed doors,” said Bergh.
Even though stores have started to open again, the situation is far from normal, according to Levi Strauss, a manufacturer and retailer of clothing including denim jeans.“While approximately 90% of our stores have now reopened worldwide, as have most of our franchise and wholesale partner doors, traffic and revenues lag behind the previous year,” said said Bergh.Levi Strauss, however, spotted some signs of improvement.
“Although we are starting to see green shoots, we must continue to be cautious,” said Bergh. “We are still faced with many unknowns. ”