Levi Strauss Shares Gain On Q1 Earnings Beat, Reaffirming FY22 Outlook

Levi Strauss & Co. LEVI reported first-quarter FY22 revenue growth of 22% year-over-year to $1.6 billion, + 26% on a constant-currency basis, beating the consensus of $1.55 billion.
DTC net revenues +35% Y/Y, driven by company-operated stores and e-commerce. Wholesale net revenues +15% Y/Y, and global digital net revenues grew ~16% Y/Y.
Adjusted EPS was $0.46 (+35% Y/Y), beating the consensus of $0.42.
The gross margin was 59.3%, and the Adjusted gross margin was 59.4%, up 170 bps.
The Operating margin was 14.7%, and the Adjusted EBIT margin of 14.9%, up from 13.3% in 1Q21.
Levi’s cash and cash equivalents stood at $678 million at the end of the quarter. Net debt was $248 million.
Cash from operations was $86 million compared to $69 million in 1Q21. Adjusted free cash flow was negative $124 million.
Dividend: LEVI declared a dividend of $0.10 per, payable in cash on or after May 24, 2022, to the holders of record of Class A common stock and Class B common stock at the close of business on May 6, 2022.
During the quarter, the company repurchased 3 million shares.
FY22 Guidance reaffirmed: LEVI sees Net revenues growth of 11% to 13% compared to FY 2021, between $6.4 billion and $6.5 billion (vs. consensus of $6.45 billion); and Adjusted diluted EPS of $1.50-to-$1.56 (vs. consensus of $1.55).
Price Action: LEVI shares are trading higher by 2.22% at $19,84 during the post-market session on Wednesday.
Photo by manusama via Pixabay

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