Levi’s stated Tuesday a majority of its stores in China, where the coronavirus pandemic first emerged in December, had been open with sales recovering on a weekly basis and digital sales rising in March.
The company reported better-than-anticipated earnings and revenue for the primary quarter ended February 23, even as sales in Asia dropped due to store closures, sending Levi’s shares up about 3%.
Like many U.S. retailers, Levi’s has been hit by the coronavirus crisis as lockdowns in China and the U.S. to curb the spread of the infection compelled store closures. Levi’s has stood via the world wars and the 1918 flu pandemic in its 167-year history.
Practically all stores in mainland China, along with the store in Wuhan, the epicenter of the outbreak, had been now open, Levi Strauss stated.
Traffic and sales in the area remained down, but weekly sales performance was sequentially bettering, the company stated, including that sales from its websites and different online platforms grew in March powered by demand for women’s wear.
The retailer has been investing more in its e-commerce business, including features designed to draw young consumers, to cope with the decline in foot traffic to malls and shops resulting from a shift in shopping preferences.
The company stated the impact of the pandemic can be “materially significant” for the second quarter, as stores stay closed in the U.S., where more than 10,000 deaths have been reported.