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The
company also said it would cut about 700 positions, or roughly
15% of its workforce, in non-retail, non-manufacturing segments
that would help it save $100 million annually.
Met with temporary closure of its own stores as well as partner
outlets, Levi introduced curbside pickup and started fulfilling
online orders at its stores as customers turned to online
shopping to avoid contact with people.
The company reported a 25% increase in its online business in
the second quarter ended May 24, with a month-over-month rise of
nearly 80% in May.
Levi added that weekly sales performance in company-operated
stores was improving sequentially, as productivity in the final
week of June reached 80% compared to a year earlier.
Still, Chief Executive Officer Chip Bergh said that he was
"cautiously optimistic" about the early trends.
The company also expects its margins for the rest of the year to
be under pressure as it tries to offload excess inventory that
remained unsold during the lockdowns.
Shares of the San Francisco-based company, which have lost about
a quarter of their value since the start of the year, fell 4% in
extended trading.
Net revenue in the second quarter fell 62% to $497.5 million,
but beat analysts' expectations of $485.5 million, according to
IBES data from Refinitiv.
Levi reported net loss attributable to the company of $363.5
million compared with a profit of $28.2 million, a year earlier,
largely due to $242 million in restructuring charges and
inventory costs.
On an adjusted basis, the company posted a loss of 48 cents per
share, narrower than expectations.
(Reporting by Nivedita Balu and Shanti Nair in Bengaluru;
Editing by Vinay Dwivedi)
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