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Levi’s sees a surge in share prices as online sales jump offsetting decline in other areas

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Levi's

It is very well known that online sales due to the Coronavirus pandemic have meant that the retail stores have been hit very hard which is because people can’t go out to buy anything physically. This has also meant that a lot of big names have had to file for bankruptcy due to poor sales and the overhead costs increasing a lot. Now, it is also worth noting that while many brands have started selling online, not everyone has figured out how the e-commerce market works. Having said that, we are happy to report that Levi’s does seem to have figured that out for sure.

Levi’s has seen a jump in their share prices after they posted a record quarter of online sales. Also, this will be comforting for investors of Levi’s shares who know that their physical sales have come almost to a halt right now. It is also worth noting that Levi’s shares came down 27% year-on-year due to the Coronavirus pandemic but its online business has surged 52% which offsets all that was lost. The share price of Levi’s was recorded at a 9% high after they reported the more than 50% sales jump in the online category.

Levi’s also says that they expect this trend to continue since the holiday season, as well as the sales, are coming but they do say the overall sales will still be down by more than 10% compared to last year due to the pandemic. Now, this is expected and not as bad as some other stores have seen in terms of decline due to the pandemic and we are sure that the management at Levi’s is happy on how they have managed this storm.

Levi’s has also announced it will stop paying dividends in the fourth quarter of 2020 but it says that the payouts should be back from next year.

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