(Reuters) – Levi Strauss & Co <LEVI.N> posted a surprise profit and beat revenue estimates on Tuesday as consumers shopped more on the denim maker’s website and app during the COVID-19 pandemic, sending its shares up 13% after the bell.
Sales of non-essential items have improved since the peak of coronavirus lockdowns as previously stuck-at-home consumers ventured out more, with some returning to work as well.
Levi said its margin-driving e-commerce revenue grew 52% in the quarter, helped by the introduction of curbside pickup at its stores.
“Revenues have been recovering from COVID-19 related disruptions faster than expected, driven by e-commerce, international and our women’s business,” said Chief Financial Officer Harmit Singh.
Net revenue declined about 27% to $1.06 billion, but came in ahead of market estimates of $822.3 million, according to IBES data from Refinitiv.
Excluding certain items, Levi earned 8 cents per share, while analysts on average had projected a loss of 22 cents, as it benefited from price increases.
(Reporting by Praveen Paramasivam in Bengaluru; Editing by Devika Syamnath)
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