Levi Strauss & Co. shares soared more than 9% Tuesday after the denim maker reported online sales growth of 52%, which helped offset losses elsewhere in the business during the fiscal third quarter.
Management told analysts it expects the strong performance will continue into the holiday quarter, though it is calling for sales to be down 14% to 15% year over year during the period, assuming the pandemic does not worsen. The company also said it will stop paying a dividend in the fourth quarter, but it aims to resume payouts in 2021, should the positive trends continue.
Levi’s third-quarter sales fell 27% due to coronavirus pandemic-related store closures, and net income tumbled 78%. But the declines were less than the company had anticipated, topping internal targets.CNBC