Levi Strauss Shares Gain 4% on Solid Beat and Reaffirmed Outlook
2022.07.08 03:11
Levi Strauss (LEVI) Shares Gain 4% on Solid Beat and Reaffirmed Outlook
By Investing.com Staff
Shares of Levi Strauss & Co. (NYSE:LEVI) rose 4% after-hours Thursday after the denim maker posted strong second quarter results, reaffirmed guidance, and raised its dividend.
The company reported Q2 adjusted earnings per share of $0.29, beating the consensus of $0.23. Revenue rose 15% to $1.5 billion, topping the consensus of $1.43 billion. On a constant-currency basis revenue was up 20%. Direct-to-Consumer net revenue was up 16%, while Global Wholesale net revenue rose 15%. Adjusted EBIT margin was a Q2 record 9.9%, up from 9.0% in Q2 2021.
“Our second quarter results demonstrate the power of our strategy, which continues to support strong revenue growth and margin expansion,” said Chip Bergh, president and chief executive officer of Levi Strauss & Co. “Our brands are resonating with consumers across geographies, channels and product categories. By continuing to advance our most impactful growth drivers – being brand-led, direct to consumer first and diversifying the portfolio, we are well-positioned to continue to drive growth and create significant value for all our stakeholders.”
Looking ahead, the company sees FY 2022 net revenues growth of 11% to 13% and EPS of $1.50-$1.56, which compares to the consensus of $1.55.
CFO Harmit Singh said the company remains on the path to achieve net revenues of $9 to $10 billion and adjusted EBIT margin of 15% by fiscal year 2027.
The company also declared a dividend of $0.12 per share, up 20% from its prior dividend. The dividend will be payable on August 17, 2022, to stockholders of record on July 1, 2022, with an ex-dividend date of June 30, 2022. The annual yield on the new dividend is 2.9%.
