Levi Strauss & Co. (LEVI) posted better-than-expected quarterly results Tuesday, but withdrew full-year guidance and cautioned that it will reassess dividend payments because of the sharp economic downturn tied to the COVID-19 pandemic.
The company reported diluted earnings of 40 cents a share on revenue of $1.5 billion for its fiscal first quarter, ended Feb. 23. Analysts were expecting 35 cents a share, on sales of $1.5 billion, based on a FactSet survey of 9 analysts.
In the same period a year ago, the company posted earnings of 38 cents a share on sales of $1.4 billion.
With Levi's stores in the U.S., Europe and much of Asia closed since mid-March "the adverse impact to the company’s second-quarter net revenues, earnings and cash flows is expected to be materially significant," Levi Strauss said in a statement.
The stock has fallen 44.6% since the company last reported earnings on Jan. 30.
"Given the substantial uncertainty introduced by the global spread of the COVID-19 pandemic and subsequent economic impact, the company has withdrawn all guidance provided on Jan. 30, 2020, and is not providing further guidance at this time," the company said in the statement.
For the year, analysts had been projecting revenue of $5.4 billion.
Shares of Levi Strauss rose 21 cents, or 1.8%, to $12.22 in after-hours action. Shares gained 9.8% in the regular session ahead of the earnings report.
In the broader markets, stocks ended lower after giving up early gains in the wake of Monday's surge in equity values.