Harmit Singh, CFO of American jeans brand Levi's, revealed that due to the impact of the epidemic, the company has closed about half of its stores in China, which is expected to impact its recent financial performance.
In September 2019, Levi's opened its largest store in Asia in Wuhan. With a total area of 700 square meters, it is also the brand's sixth largest store in the world. The Chinese business accounted for about 3% of the global operating revenue of Levi's.
Singh said that it will have a repressing effect on their growth target in a short period of time. He also said that Levi's had suspended all employee trips from or to China.
Levi's previously released its results for the fourth quarter of 2019, stating that its net operating revenue decreased by 1.4% to USD1.57 billion, which was slightly lower than market expectations; and its earnings per share after adjustment was 26 cents, which was higher than market expectations.
The company predicted that for the year of 2020, its earnings per share after adjustment would be between USD1.18 and USD1.22.