Prime Highlights-
- Levi Strauss beat Wall Street’s second-quarter expectations on both earnings and revenue, prompting the company to raise its full-year guidance and dividend.
- The denim maker now expects full-year adjusted earnings per share between $1.46 and $1.52, up from its earlier range.
Key Facts-
- Levi Strauss reported adjusted earnings of 28 cents per share, ahead of the 24 cents expected by analysts.
- Quarterly revenue reached $1.56 billion, up about 8 percent from $1.45 billion a year earlier.
Background-
Levi Strauss posted a strong second quarter, topping Wall Street’s earnings and revenue targets and pushing the company to lift its full-year guidance along with its dividend.
The denim maker now projects full-year adjusted earnings per share of $1.46 to $1.52, an increase from its earlier forecast of $1.42 to $1.48.
The company also raised its revenue forecast, now looking for full-year sales growth of 7 percent to 7.5 percent, up from a prior estimate of 5.5 percent to 6.5 percent.
Finance chief Harmit Singh said roughly half of that growth should come from price increases, with strong unit sales driving the rest. Levi Strauss posted adjusted earnings of 28 cents per share for the quarter, beating the 24 cents analysts had forecast.
Revenue landed at $1.56 billion, ahead of the $1.52 billion analysts expected. Net income for the three months ending May 31 climbed to $87.3 million, or 22 cents per share, up from $67 million, or 17 cents per share, in the same period last year. Sales rose to $1.56 billion, an 8 percent jump from $1.45 billion a year earlier.
Chief Executive Officer Michelle Gass pointed to the strength and staying power of the company’s core customer base. She said around two-thirds of the quarter’s sales growth stemmed from higher unit sales, which gave the company confidence to raise both its guidance and dividend.