Levi Strauss Sets Optimistic Tone in First Earnings Report
In its first report since coming public, Levi Strauss & Co. (NYSE: LEVI) posted its fiscal first-quarter financial results. Overall, the results were fairly positive, setting the tone for the company going forward.
Keep in mind that most analysts are stuck in the post-IPO quiet period, so there were no real reliable consensus estimates going into this report.
The denim jeans maker posted $0.37 in earnings per share (EPS) and $1.44 billion in revenue, which compares with a net loss of $0.05 per share and $1.34 billion in revenue in the same period of last year.
First-quarter net revenues grew 7% on a reported basis and 11% on a constant-currency basis, excluding $48 million in unfavorable currency translation effects. Reported net revenues related to the company’s direct-to-consumer business grew 10%, primarily due to performance and expansion of the retail network, as well as e-commerce growth.
In terms of its regional segments, the company reported as follows:
- Americas net revenues increased 9% year over year to $717 million.
- Europe net revenues increased 3% to $465 million.
- Asia net revenues increased 8% to $253 million.
Looking ahead to the fiscal full year, Levi Strauss expects to see constant-currency net revenues growth of mid-single digits and constant-currency adjusted EBIT margin flat to slightly up.
Chip Bergh, president and chief executive of Levi Strauss, commented:
We delivered our sixth consecutive quarter of double-digit constant-currency revenue growth. Growth was broad-based across all three regions and all channels, demonstrating that our strategies are working and our investments are paying off.
Shares of Levi Strauss were last seen up about 5% at $22.98, in a post-IPO range of $21.24 to $24.19.