Levi Strauss & Co. ( NYSE: LEVI ) gained in after-hours trading after the company beat FQ2 revenue and EPS estimates, as well as bracketing full-year guidance around the consensus expectation.
Revenue was up 15% during the quarter to $1.47B and was 20% higher on a constant-currency basis. Sales topped expectations in the Americas to help offset misses for the Europe and Asia businesses.
Global direct-to-consumer revenue rose 16% during the quarter, reflecting a 23% increase in company-operated stores.
Adjusted gross margin was unchanged from a year ago at 58.2% despite the inflation pressures. The margin rate reflected the benefit of a higher proportion of sales in the DTC channel, lower promotions, a higher percentage of full price sales and price increases, which were offset by the impact of higher product and freight costs.
Adjusted EBIT came in at $145M vs. $125M consensus.
"Although the operating environment remains dynamic, the diversity of our business is providing the resilience and flexibility needed to drive solid financial results in fiscal year 2022, while progressing us on our path to achieve net revenues of $9 to $10 billion and adjusted EBIT margin of 15% by fiscal year 2027," noted CFO Harmit Singh.
Looking ahead, Levi Strauss ( LEVI ) guided for full-year revenue of $6.40B to $6.50B vs. $6.44B consensus. Adjusted EPS is seen landing in a range of $1.50 to $1.56 for the fiscal year vs. $1.55 consensus.
Shares of Levi Strauss ( LEVI ) rose 4.81% in after-hours trading to $17.21 vs. the 52-week trading range of $15.63 to $30.09. LEVI still trades below the 50-day, 100-day, and 200-day moving averages.
For further details see:
Levi Strauss rallies after shaking off inflation backdrop to post strong quarter