Levi's to lay off hundreds of workers as revenue plunges and losses grow
Levi Strauss & Co. LEVI, -4.02% shares fluctuated between slight gains and losses in the extended session Tuesday after the jeans maker reported revenue that fell short of Wall Street estimates and announced layoffs. Levi shares were last up 0.5% after hours, following a 4% decline in the regular session to close at $13.83. The company reported a second-quarter loss of $363.5 million, or 91 cents a share, compared with net income of $28.2 million, or 7 cents a share, in the year-ago period. The adjusted loss was 48 cents a share. Revenue fell to $497.5 million from $1.31 billion in the year-ago quarter as the company closed most stores temporarily due to the COVID-19 pandemic. Analysts surveyed by FactSet had forecast an adjusted loss of 48 cents a share on revenue of $504.4 million. The company said it was pulling its outlook for the year. Analysts expect earnings of 20 cents a share on revenue of $4.49 billion. Levi also said that it was cutting about 15% of its non-retail and non-manufacturing positions, or about 700 jobs, in 2020. "Although trends appear to be improving sequentially, the ultimate health and economic impact of the COVID-19 pandemic remains highly uncertain," Levi said in a statement. "The company expects that its business and results of operations, including net revenues, earnings and cash flows, will continue to be significantly adversely impacted for at least the balance of 2020, and there remains the possibility of additional COVID-19 related inventory and other charges."