The denim jeans retailer posted quarterly results that beat Wall Street forecasts
Levi Strauss & Co’s Q1 2022 revenue rose 21.8% to $1.59 billion, higher than the $1.55 billion estimated by analysts. The EPS came in at 46 cents, above 42 cents per share estimates.
Levi has benefited from price increases meant to mitigate the impact of supply chain disruptions, inventory shortages, and inflationary pressures. Also, the hot trend for high-rise jeans and loose-fitting clothes has boosted sales.
The company reiterated its full 2022-year guidance, with estimated net revenue in the range of $6.4 - $6.5 billion, pointing to a growth of 11-13% and an adjusted diluted EPS in the field of $1.50-$1.56. It has also considered the financial hit by its recent decision to temporarily suspend its activity in Russia, which accounts for 2% of the company’s sales. "The ongoing consumer demand across our portfolio of brands and our proven ability to deliver profitable growth gives us the confidence to reaffirm our full-year outlook despite the incremental headwinds from ongoing macro challenges," CFO Harmit Singh stated.
At the moment of writing, Levi Strauss’ stock price was trading 2.37% higher.
Sources: finance.yahoo.com, investing.com