Levi Strauss & Co. (LEVI) – Get Report posted a surprise third-quarter profit after the market close Tuesday, boosted by a surge in its online businesses.
The San Francisco-based clothing maker posted adjusted earnings of 8 cents a share on revenue of $1.1 billion for the period.
The company had been expected to report a loss of $104.6 million, or 22 cents a share, on sales of $822.2 million, based on a FactSet survey of nine analysts.
In the same period a year ago, the company posted earnings of 31 cents a share on sales of $1.4 billion. It reported net income of $28.2 million.
“We exceeded our expectations for the third quarter,” said Chip Bergh, president and chief executive officer, in a statement. “Our total digital business has doubled as a share of total net revenues, and Levis remains the global leader in denim, where our women’s business continues to take market share.”
The company is “investing in digitization, and accelerating our efforts to diversify across geographies, product categories and distribution channels, including doubling down on our fast-growing direct-to-consumer business,” Bergh added.
Shares of Levi Strauss rose in after-hours trading following the report. The stock gained $1.36, or 9.2%, to $16.10 in late trading. In the regular session Levi shares fell 1.8% on a down day for stocks. Shares on Wall Street ended lower Tuesday after President Donald Trump tweeted that he was instructing White House officials to break off stimulus bill negotiations with House Speaker Nancy Pelosi.
Trump is suffering from Covid-19. He returned to White House Monday from Walter Reed Medical Center where he spent the weekend undergoing treatment for the virus.