Levi’s shares up on strong Q2 results

Image Levi's shares Q2 results

Shares of Levi Strauss & Co (NYSE: LEVI) are up roughly 5.0% in extended trading after the clothing company said strong sales helped it do better-than-expected in the fiscal second quarter.

Levi Strauss Q2 financial highlights

  • Earned $50 million in fiscal Q2 versus the year-ago figure of $65 million
  • Per-share earnings of 12 cents were significantly below last year’s 23 cents
  • Adjusted for nonrecurring items, EPS stood at 29 cents in the recent quarter
  • Revenue jumped 15% YoY to $1.50 billion, as per the earnings press release
  • FactSet consensus was for 23 cents of adjusted EPS on $1.40 billion in sales
  • Digital was up 3.0% and made up 20% of the total sales in the second quarter

Levi’s attributed its strong results to both DTC and wholesale. Ukraine war, it added, resulted in a $60 million hit in Q2. The stock is down more than 30% for the year.

Levi Straus future outlook

For the full financial year, Levi Strauss reiterated its outlook for an 11% to a 13% increase in revenue on up to $1.56 of EPS.

It also raised its quarterly dividend from 10 cents a share to 12 cents a share. In the earnings press release, CEO Chip Bergh said:

By continuing to advance our most impactful growth drivers – being brand-led, direct to consumer first and diversifying the portfolio, we’re well-positioned to continue to drive growth and create significant value for all our stakeholders.

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Source: https://invezz.com/news/2022/07/07/levis-shares-up-on-strong-q2-results/