Levi Strauss Shares Gain On Q3 Earnings, Lifting FY21 Outlook

  • Levi Strauss & Co LEVI reported third-quarter FY21 sales growth of 41% year-on-year and 3% against Q3 FY19, to $1.498 billion, beating the analyst consensus of $1.48 billion.
  • Direct-to-Consumer sales rose 34% Y/Y and 4% versus Q3 2019. Global Wholesale revenues climbed 45% Y/Y and 3% compared to Q3 2019.
  • Revenues through all digital channels grew 10% Y/Y and 76% against Q3 2019.
  • Revenue in the Americas grew 52% Y/Y, Europe increased 27%, and Asia rose 34%.
  • The gross profit rose 49.4% Y/Y to $862 million, and the gross margin expanded 330 basis points Y/Y to 57.6%. Adjusted gross margin expanded 390 basis points to 57.5%. 
  • The operating margin was 14.4%, and operating income for the quarter rose 134.7% to $216 million. Adjusted EBIT jumped 163% Y/Y to $222 million.
  • Adjusted EPS of $0.48 beat the analyst consensus of $0.37.
  • Levi Strauss held $1.4 billion in cash and equivalents as of August 29, 2021. Cash generated through operations for nine months in 2021 totaled $499 million, and the adjusted free cash flow amounted to $220 million.
  • The Board of Directors authorized a $200 million share repurchase program.
  • "We have taken pricing actions and believe we have the pricing power to mitigate inflationary pressures," said CFO Harmit Singh.
  • Outlook: Levi sees Q4 Adjusted EPS of $0.38 - $0.40, versus the consensus of $0.39.
  • The company raised the FY21 adjusted EPS outlook to $1.43 - $1.45 (prior view $1.29-$1.33) versus the consensus of $1.33.
  • Price Action: LEVI shares are trading higher by 4.13% at $25.24 in premarket on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!