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
