An indication is posted in entrance of the Levi Strauss & Co. headquarters on April 09, 2021 in San Francisco, California.
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Levi Strauss on Thursday reported quarterly income and earnings that got here in above Wall Street expectations, because the clothes firm identified for its denim mentioned it benefitted from Americans choosing extra relaxed gown codes.
The San Francisco firm elevated its quarterly dividend and stood by its steerage for the yr. Its shares had been up about 4% at $17.08 in after-hours buying and selling.
Here’s how Levi carried out for the quarter ending May 29 in comparison with Wall Street estimates primarily based on a survey of analysists by Refinitiv.
Revenue: $1.47 billion vs. $1.43 billion expectedEarnings per share: 29 cents adjusted vs. 23 cents anticipated
Levi Straus mentioned its larger income within the quarter was fueled by each stronger direct-to-consumer and wholesale gross sales. It mentioned digital income rose 3% globally and accounted for 20% of gross sales within the quarter.
“Jeans at the moment are way more acceptable within the workplace,” CEO Chip Bergh advised CNBC in an interview.
The retailer did observe mid-single-digit declines from a yr in the past at its two worth denim manufacturers, which promote at Target, Walmart and Amazon and make up a small proportion of the corporate’s total enterprise, Bergh mentioned.
“So there’s some proof that the extra worth acutely aware shopper — the decrease earnings shopper — is beginning to really feel the squeeze and is beginning to make some decisions,” he mentioned.
But he mentioned the declines had been greater than offset by the corporate’s core enterprise.
Levi’s income of $1.47 billion for the quarter was up 15% from the $1.27 billion the corporate reported within the year-ago interval. Analysts anticipated $1.43 billion.
Sales grew by 17% within the Americas, 3% in Europe and 16% in Asia in comparison with 2021. Levi’s different manufacturers, Dockers and Beyond Yoga, noticed a rise of 56% in comparison with final yr.
The firm’s promoting, basic and administrative bills had been $779 million within the quarter, larger than the $644 million final yr. The firm attributed the rise to the battle in Ukraine.
For the quarter, the corporate reported a web earnings of $49.7 million, or 12 cents a share, in contrast $64.7 million, or 16 cents a share, within the year-ago interval. On an adjusted foundation, the corporate mentioned it earned 29 cents a share in the latest quarter, which was greater than the 23 cents per share Wall Street anticipated.
For the full-year, the corporate stood by its steerage for income to develop 11% to 13% from a yr in the past. It nonetheless expects adjusted earnings of $1.50 to $1.56 per share.
The firm hiked its quarterly dividend to 12 cents a share, up from 10 cents a share.
Harmit Singh, Levi’s chief monetary officer, advised CNBC that the corporate determined to reaffirm its fiscal 2022 outlook however to extend its dividend given the lingering results on the conflict abroad, the potential slowdown of the worth acutely aware shopper, continued Covid lockdowns in China and foreign money adjustments.
CNBC’s Lauren Thomas contributed to this report.