Levi Strauss revenue tops estimates on strong demand, price hikes
2022.04.06 23:52
FILE PHOTO: The Levi Strauss & Co. label is seen on clothes in a store at the Woodbury Common Premium Outlets in Central Valley, New York, U.S., February 15, 2022. REUTERS/Andrew Kelly/File Photo
(Reuters) – Levi Strauss & Co (NYSE:LEVI) on Wednesday beat Wall Street estimates for quarterly revenue, helped by price increases as well as strong demand for its jeans, tops and jackets as more people venture out.
Levi has benefited from price increases aimed at mitigating the impact of supply chain disruptions, inventory shortages and inflationary pressures. The company has also been selling its products at full-price, boosting its margins.
The trend for high-rise jeans and loose-fitting clothes has accelerated as people attend more social events, boosting sales in companies such as Levi and Wrangler.
The company’s revenue rose 21.8% to $1.59 billion in the first quarter ended Feb. 27, compared with analysts’ average estimate of $1.55 billion, according to IBES data from Refinitiv.
Levi net income for the quarter ended Feb. 27 rose to $195.8 million, or 48 cents per share, from $142.5 million, or 35 cents per share, a year earlier.
