A pair of Levi’s Selvage denim jeans arranged in Louisville, Kentucky.
Luke Sharrett | Bloomberg | Getty Images
Levi Strauss posted earnings and revenue on Wednesday that were above Wall Street’s expectations.
Shares of the company rose in after-hours trading as the company also offered upbeat sales guidance for its new fiscal year.
Here’s how Levi’s performed in its fiscal fourth quarter against Wall Street’s expectation, based on a survey of analysts by Refinitiv:
- Earnings per share: 34 cents, adjusted, versus the 29 cents expected
- Revenue: $1.59 billion vs. $1.57 billion expected
The company’s net income for the three-month period ended November 27 was $151 million, or 38 cents per share, compared with $153 million, or 37 cents per share, a year earlier.
Sales were $1.59 billion, down 6% from a year ago.
levi grappling with a slowdown in discretionary spending And demand for denim has slumped, leading some analysts to downgrade the stock,
Denim brand sees drop in direct consumer revenue, company alleges stores closed in russia,
Levi’s CEO and President Chip Bergh told CNBC that direct-to-consumer sales dropped 2% after Levi’s closed nearly all of its stores in Russia, a key market for the denim retailer. Nevertheless, Levi’s direct channels saw a strong Christmas season and sales increased 10% in November and December compared to the previous year.
Digital sales were also down 7% year-over-year, which the company attributed to a return to stores and a decrease in online purchases. The retailer has appointed a new Chief Digital Officer to improve the online shopping experience and drive sales. The new chief previously oversaw the digital operations of Nordstrom.com and NordstromRack.com.
Berg said Europe will remain a strong focus for Levy in the coming fiscal quarter. The retailer plans to open around 100 new stores across Europe, which would number between 70 and 80 on a net basis.
For fiscal 2023, the blue jeans mainstay expects revenue between $6.3 billion and $6.4 billion, which translates to 1.5% to 3% year-over-year growth, unless headwinds related to inflation and the pandemic worsen. are not. The company expects adjusted earnings per share of $1.30 to $1.40. Wall Street is forecasting $6.27 billion in sales and $1.35 in earnings per share.
Levi’s Chief Financial Officer, Harmit Singh, will also be the company’s Chief Development Officer, effective immediately, Berg announced in a news release. He will focus on expanding the company’s growth in direct-to-consumer, women’s apparel and its other brands, Beyond Yoga and Dockers, among other initiatives.
Find out the full amount released from the levy Here,