Levi Strauss & Co. selected a spectacular approach to celebrate its first quarter of growth since the epidemic. On Thursday afternoon, the jeans and casual-wear specialist revealed record sales and profit margins until late May. Executives also upped their forecast for 2021 for the second time in a row.
Levi’s revenues increased 156 percent to $1.3 billion in the third quarter, above most analysts’ expectations of a 150 percent growth. The difference was a thriving digital business, which allowed e-commerce sales to increase by 75% and account for 23% of overall revenue. In a statement, CEO Chip Bergh stated, “We considerably exceeded our expectations.”
The revised profit forecast alleviated some of investors’ major concerns as the year progressed towards the second half of 2021. Through difficult selling conditions, the company’s innovation, branding, and production platforms all performed successfully. As long as the clothing sector is in a high growth cycle, shareholders may expect additional growth in these cash return channels.
