Levi Strauss Tops Q2 Estimates, Reaffirms Guidance; Shares Jump
2022.07.08 02:05
By Yasin Ebrahim
Investing.com — Levi Strauss & Co. shares gained in afterhours Thursday after the apparel maker reported quarterly results that topped analysts’ estimates and reaffirmed its full-year guidance.
Levi Strauss (NYSE:LEVI) is up more than 4% in afterhours following the news.
Levi reported fiscal Q2 EPS of 29 cents, up from 23 cents a year earlier, as revenue rose to $1.47 billion from $1.28 billion a year earlier. That topped Wall Street forecasts for EPS of 22 cents and revenue of $1.43 billion.
Direct-to-consumer net revenue was up 16%, supported by a 23% increase in company-operated stores.
Digital channels, which represented about a fifth of total sales in the quarter, grew 3% from the year-ago period.
Total inventories increased 29% in Q2 year-on-year, in line with the company’s expectations, following a ramp-up in inventories as the apparel maker looked to mitigate supply chain risk and meet consumer demand.
Inventory levels were, however, lower than normal at the end of the second quarter last year “due to the impact of global supply chain disruption,” the company said.
Looking ahead, the company reaffirmed guidance for fiscal 2022, forecasting revenue growth of 11% to 13%, between $6.4 billion and $6.5 billion and adjusted earnings of $1.50 to $1.56 a share.
The company also raised its quarterly dividend by 20%.
