Direct ecommerce revenue at Levi Strauss & Co. grew 52% in its third fiscal quarter compared with the same period last year, making up 8% of total sales, or approximately $85.0 million, the jeans giant reported for its fiscal Q3 ending Aug. 23. Levi’s is No. 174 in the 2020 Digital Commerce 360 Top 1000.
Direct online sales combined with wholesale customers’ online sales of Levi’s products generated 24% of sales for the quarter, or $255.1 million, up approximately 50% in revenue and doubling the share of revenue web sales generate, the apparel brand said.
However, overall sales were down 26.5% to $1.06 billion from $1.45 billion the prior year due to fewer in-store sales both at Levi’s own locations and wholesale customers’ physical stores. For the first three quarters, sales decreased 26.9% to $3.07 billion from $4.20 billion.
Returning to direct online sales, Levi’s ecommerce operations remained profitable for the quarter and reached profitability for the year so far, but the company did not disclose exact figures for ecommerce. It expects ecommerce will remain profitable for 2020 as a whole, which Levi’s said is a year ahead of schedule. Overall profit shrank 78.2% to $27.0 million from $124.0 million for the quarter.
Part of Levi’s success with direct ecommerce is the higher order values on its own sites. The average item sold online is nearly double the price of those sold through wholesale customers’ sites. Levi’s didn’t provide an exact dollar figure.
Regionally, the U.S. grew online sales the fastest, according to CEO Charles Bergh speaking on a call with analysts. U.S. ecommerce sales rose 61% for the quarter compared with last year. Ecommerce revenue increased 35% in Europe and 27% in Asia (which includes a 50% increase in India).
“As store locations have reopened, the company’s e-commerce net revenues growth has remained strong,” Levi’s noted in its earnings release. Ecommerce would not impact store revenue unless online sales penetration doubled, chief financial officer Harmit Singh said in the analyst call.
Store reopenings are also benefiting fulfillment, with 20% of direct online orders shipped from stores during the quarter. Part of that is curbside pickup, which is now available at more than half of its U.S. stores and will be available at all U.S. locations for the holiday season, Singh said. Levi’s had 905 company-operated stores worldwide at the end of 2019, but it doesn’t break out the number of U.S. locations.
Bed Bath & Beyond online revenue up 88%
Bed Bath & Beyond Inc. (No. 58) increased online sales 88% year over year for its second fiscal quarter ended Aug. 29. Web sales generated 32% of company revenue for the quarter, or approximately $860.1 million, the home goods retailer’s CEO Mark Tritton said in a call with analysts.
In-store and curbside pickup options helped drive that digital gain, Tritton said, with those omnichannel offerings generating 15% of digital revenue or $120 million, up 200% over the first quarter when the offerings were first introduced. Combined with ship-from-store, sales from stores generated 36% of online revenue, or $309.7 million.
Online conversion rates rose by 33% to 4%, with traffic up 52% for the quarter over the same period last year to 180 million visits and 2 million new online customers,ACCORDING TO? Mobile views increased 133% year over year in Q3, buoyed by 20 million visits in its mobile app.
Percentage changes may not align exactly with dollar figures due to rounding.
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