Levi Strauss reported quarterly results that exceeded Wall Street expectations on both earnings and revenue for its second fiscal quarter, prompting the company to raise its full-year guidance and dividend. The denim maker posted adjusted earnings per share of 28 cents, surpassing the expected 24 cents, and revenue of $1.56 billion, ahead of the anticipated $1.52 billion according to LSEG analyst surveys [1]. Net income for the quarter ending May 31 was $87.3 million, or 22 cents per share, compared to $67 million, or 17 cents per share, a year earlier. Sales increased approximately 8% year-over-year, rising from $1.45 billion to $1.56 billion [1].
Levi Strauss now expects full-year adjusted earnings per share between $1.46 and $1.52, up from the previous range of $1.42 to $1.48. At the high end, this outlook exceeds the consensus expectation of $1.50 per share. The company also raised its full-year sales growth forecast to between 7% and 7.5%, compared to the prior range of 5.5% to 6.5%, and above the expected 6.6% [1]. Finance chief Harmit Singh noted that about half of the projected sales growth is expected to come from higher prices, with the other half from increased unit sales [1].
Despite the strong results and improved outlook, Levi Strauss shares fell more than 5% in extended trading. CEO Michelle Gass attributed the company's confidence to resilient demand, stating that about two-thirds of the quarter's sales growth came from unit sales rather than just higher prices. Gass highlighted ongoing strength across key consumer segments, including the core Levi's brand, signature lines, and the new premium blue tab collection [1].
No specific analyst opinions or additional forward-looking statements beyond the raised guidance and dividend were provided in the article.
CONCLUSION
Levi Strauss delivered a strong quarterly performance, beating expectations and raising both its guidance and dividend. However, shares declined over 5% in after-hours trading, suggesting investor caution despite the company's positive outlook and robust sales growth.