Levi Strauss Co (LEVI) Q4 earnings 2022

A pair of Levi’s selvedge denim denims organized in Louisville, Kentucky.

Luke Sharrett | Bloomberg | Getty Pictures

Levi Strauss on Wednesday posted earnings and income that topped Wall Avenue’s expectations.

Shares of the corporate rose in after-hours buying and selling as the corporate additionally supplied upbeat gross sales steerage for its new fiscal 12 months.

Here is how Levi did in its fiscal fourth quarter in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by Refinitiv:

  • Earnings per share: 34 cents, adjusted, vs. 29 cents anticipated
  • Income: $1.59 billion vs. $1.57 billion anticipated

The corporate’s reported internet earnings for the three-month interval that ended Nov. 27 was $151 million, or 38 cents per share, in contrast with $153 million, or 37 cents per share a 12 months earlier.¬†

Gross sales have been $1.59 billion, down 6% from a 12 months earlier.

Levi has been grappling with a slowdown in discretionary spending and a diminished demand for denim, main some analysts to downgrade the inventory.

The denim model noticed a drop in direct to shopper income, which the corporate blamed on retailer closures in Russia.

Direct to shopper gross sales declined 2% after Levi closed almost all of its outlets in Russia, a serious marketplace for the denim retailer, Levi CEO and President Chip Bergh advised CNBC. Nonetheless, Levi’s direct channels noticed a powerful Christmas season and gross sales elevated 10% in November and December in comparison with the prior 12 months, the corporate mentioned.

Digital gross sales have been additionally down 7% year-over-year, which the corporate attributed to a return to shops and a cooldown on on-line procuring. The retailer has employed a brand new chief digital officer to enhance the web procuring expertise and enhance gross sales. The brand new chief beforehand oversaw digital operations for Nordstrom.com and NordstromRack.com.

Europe will stay a powerful focus for Levi within the coming fiscal quarter, Bergh mentioned. The retailer plans to open about 100 new shops throughout Europe, between 70 and 80 on a internet foundation.

For fiscal 2023, the blue denims mainstay expects revenues between $6.3 billion and $6.4 billion, translating to development of 1.5% to three% year-over-year, so long as inflation and pandemic-related headwinds do not get any worse. The corporate expects adjusted earnings per share of $1.30 to $1.40. Wall Avenue is estimating $6.27 billion in gross sales and $1.35 earnings per share.

Levi’s chief monetary officer, Harmit Singh, will even be the corporate’s chief development officer, efficient instantly, Bergh introduced in a information launch. He’ll be specializing in increasing the corporate’s development into direct-to-consumer, ladies’s attire and its different manufacturers, Past Yoga and Dockers, amongst different initiatives.

Discover the complete earnings launch from Levi right here.

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