Levi’s hikes dividend as second-quarter earnings exceed expectations

• Levi Strauss posted quarterly revenue and earnings above Wall Street projections.
• Company claimed to have benefited from Americans’ preference for more lenient dress regulations.
• In after-hours trading, its shares were up almost 4% at $17.08.

The garment business known for its denim, Levi Strauss, posted quarterly revenue and earnings on Thursday that above Wall Street projections. The company claimed to have benefited from Americans’ preference for more lenient dress regulations.

The San Francisco business maintained its annual guidance while raising its quarterly dividend. In after-hours trading, its shares were up almost 4% at $17.08.

According to a Refinitiv survey of analysts, Levi outperformed Wall Street expectations for the quarter ending May 29.

Revenue: $1.47 billion vs the anticipated $1.43 billion
29 cents in adjusted earnings per share versus an estimated 23 cents

Also Read

Amazon establishes its first clothes store in Los Angeles

Amazon Style, the business's brick-and-mortar apparel store, has opened in the Los...

Levi Straus claimed that better direct-to-consumer and wholesale sales drove its higher revenue in the quarter. Digital revenue, which made up 20% of sales in the quarter, increased by 3% globally, according to the report.

According to CEO Chip Bergh, “Jeans are now considerably more acceptable in the office.”

Its two value denim brands, which are sold at Target, Walmart, and Amazon and account for a minor portion of the company’s overall sales, did experience mid-single-digit decreases from a year ago, according to Bergh.

There is some proof, he said, that lower-income consumers who are more value-conscious are beginning to feel the pinch and are beginning to make decisions.

However, he claimed that the company’s core business more than made up for the declines.

Levi’s revenue for the quarter increased from $1.27 billion to $1.47 billion, a 15% increase over the same period last year. Analyst estimates are $1.43 billion.

In comparison to 2021, sales increased by 16 percent in Asia, 3 percent in Europe, and 17 percent in the Americas. Dockers and Beyond Yoga, two of Levi’s other brands, showed a growth of 56% from the previous year.

Selling, general, and administrative costs for the corporation increased from $644 million to $779 million in the quarter. The corporation blamed the turmoil in Ukraine for the rise.

The company’s net income for the quarter was $49.7 million, or 12 cents per share, down from $64.7 million, or 16 cents per share, in the same time last year. In the most recent quarter, the firm reported adjusted earnings of 29 cents per share, exceeding Wall Street’s forecast of 23 cents.

The company maintained its forecast for revenue growth of 11% to 13% over the prior year for the entire year. It continues to forecast adjusted earnings per share of $1.50 to $1.56.

The business increased its quarterly dividend from 10 cents per share to 12 cents per share.

The company decided to maintain its fiscal 2022 outlook, but to raise its dividend instead, according to Harmit Singh, chief financial officer of Levi’s, because of the ongoing Covid lockdowns in China, the potential slowdown of the value-conscious consumer, the lingering effects of the overseas conflict, and currency fluctuations.

Also Read

After 30 years, McDonald’s will leave Russia permanently

McDonald's has said it will for all time leave Russia after over...