Shares of Levi Strauss & Co (NYSE: LEVI) are up 2.0% in extended trading after the denim retailer reported better-than-expected results for its fiscal first quarter.
Key takeaways from Levi’s Q1 earnings report
Earnings came in at $196 million versus the year-ago figure of $143 million.
On a per-share basis, earned 48 cents – an increase from last year’s 35 cents.
Adjusted for non-recurring items, Levi’s earned 46 cents in the first quarter.
Sales were up 22% YoY to $1.60 billion as Americas division jumped 26%.
FactSet consensus was for 42 cents of adjusted EPS on $1.55 billion in sales.
Europe and Asia noted a 13% and 11% YoY increase in sales, respectively.
CEO Chip Bergh’s comments
Supply constraints and higher costs resulted in a $60 million hit to revenue in the fiscal first quarter. In the earnings press release, CEO Chip Bergh said:
We started the year with strong consumer demand and solid momentum as we capitalize on structural tailwinds and successfully manage a dynamic operating environment. The strength of our brands and strategy position us to deliver sustainable growth well into the future.
Levi’s reaffirmed its guidance for the full year
Levi Strauss reaffirmed its full-year guidance on Wednesday at 11% to 13% increase in sales on up to $1.56 of adjusted per-share earnings. In comparison, analysts had called for 11.80% sales growth on $1.54 in adjusted EPS.
The forecast assumes the inflationary pressures won’t exacerbate and none of the global economies will be pushed into closure again. Levi’s has temporarily terminated business in Russia that makes up about 2.0% of its total sales.
With a PE multiple of 14.37, the stock is down 20% year-to-date.
The post Levi’s Q1 earnings report: we are positioned to deliver sustainable growth appeared first on Invezz.