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Iconic American blue jean maker Levi Strauss & Co. released its first earnings report since the company’s initial public offering last month with first quarter earnings per share of 37 cents on revenue of $1.44 billion.

Levis Denim

Levi Strauss & Co. NYSE: LEVI Reported Earnings After Close Tuesday

$0.37 EPS on $1.44 billion Revenue

Earnings

Levi Strauss said in the first quarter said it swung to earnings of $146.6 million, or 37 cents per share, from a loss of $19 million or 5 cents a share, a year ago. The lass a year ago period included a tax-related charge. Revenue rose 7% to $1.44 billion from the prior period and was up 11% on a constant currency basis.

Adjusted net income climbed by 81% to $151 million, primarily due to a transition charge in the prior year on undistributed foreign earnings, as well as higher Adjusted EBIT in the current year.

The were no forecasts available with the stock just turning public.

Levi Strauss & Co. NYSE: LEVI

Market Reaction: After Hours After hours 23.00 +1.12 (5.12%)

Highlights

“Growth was broad-based across all three regions and all channels, demonstrating that our strategies are working and our investments are paying off,” said Chip Bergh, its president and CEO in a press release.

LEVI Q1 2019 Earnings

  • Revenue related to direct-to-consumer business increased by 10% on the performance and expansion of the company’s retail network, as well as growth in its e-commerce business.
  • The company had 70 more company-operated stores at the end of the first quarter of 2019 than it did a year prior.
  • Revenue related to wholesale business rose by 5% reflecting growth in all regions. revenues in the Americas grew 9% on a reported basis and 10% on a constant-currency basis, reflecting higher revenues across both wholesale and direct-to-consumer channels across the region.
  • In Europe, net revenues rose 3% on a reported basis and 10% on a constant-currency basis, reflecting continued broad-based growth across direct-to-consumer and wholesale channels. 
  • In Asia, net revenues increased 8% on a reported basis and 14% on a constant-currency basis, reflecting strong performance across traditional wholesale, franchisee and direct-to-consumer channels.
  • Revenue growth was broad-based across the region’s markets, including China.

At February 24, 2019, cash and cash equivalents of $622 million and short-term investments of $100 million were complemented by $806 million available under the company’s revolving credit facility, resulting in a total liquidity position of about $1.5 billion. Net debt at the end of the first quarter of 2019 was $319 million.

Outlook

Levi reiterated its previous forecast, saying it expects revenue for the full year to rise by a mid-single digit percentage rate. Looking ahead into fiscal 2019, the company expects constant-currency net revenues growth in the range of mid-single digits and constant-currency adjusted EBITDA margin to be flat-to-slightly up. Additionally, the company anticipates capital expenditures of about $190 million to $200 million and nearly 100 new company-operated store openings in fiscal 2019.

Levi Strauss IPO

Levi Strauss went public for a second time on March 21, 2019. The 166-year old company first went public in 1971, but has been a private company for the last 34 years.   Levi Strauss & Co. began trading at $22.22 a share, after having priced its initial public offering at $17 a share the night prior.

The stock surged more than 30% on its first day of trading. Levi closed at $21.88 on Tuesday ahaed of earning. 

 Source: Traderscommunity, AlphaStreet

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