Home Big Grid Levi Strauss & Co. second quarter results demonstrate strong revenue growth

    Levi Strauss & Co. second quarter results demonstrate strong revenue growth

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    Levi Strauss & Co. (NYSE: LEVI) today announced financial results for the second quarter ended May 29, 2022.

    Financial Highlights for the Second-Quarter:

    • Reported  net  revenues  of  $1.5  billion  up  15%,  and  up  20%  on  a  constant-currency  basis,  versus Q2  2021 driven by growth across all business segments
    • Global  Direct-to-Consumer  reported  net  revenues  up  16%  versus  Q2  2021  reflecting  a  23% increase in company-operated stores
    • Global Wholesale reported net revenues up 15% versus Q2 2021
    • Net revenues through all digital channels represented approximately 20% of total second quarter  net revenues, up 3% on top of 75% growth in the same quarter of the prior year
    • Gross margin was 58.1%; Adjusted gross margin was 58.2%, flat from Q2 2021
    • Operating margin was 5.2%; Adjusted EBIT margin was a Q2 record 9.9%, up from 9.0% in Q2 2021
      • Net income was $50 million; Adjusted net income was $117 million, up from $93 million in Q2 2021
    • Russia-Ukraine  charges  of  $60  million  ($0.15  per  diluted  share)  related  to  the  crisis,  primarily  full  impairment of store assets, PP&E and goodwill
    • Diluted EPS was $0.12; Adjusted diluted EPS was $0.29, up from $0.23 in Q2 2021

    Chip  Bergh,  President  and  Chief  Executive  Officer  of  Levi  Strauss  &  Co. commented and highlighted “Our second quarter results demonstrate the power of our strategy, which continues to support strong revenue  growth  and  margin  expansion. Our brands are resonating with consumers across geographies, channels and product categories. By continuing  to advance  our most impactful growth  drivers  –  being  brand-led,  direct  to  consumer  first and  diversifying  the  portfolio,  we  are  well-positioned  to  continue  to  drive  growth  and  create  significant  value  for  all  our  stakeholders.”

    Harmit Singh, chief financial officer of Levi Strauss & Co. also commented and highlighted “We  delivered  another  solid  quarter,  growing  reported  net  revenues  15%  and  adjusted  EBIT  27%,  while  returning $80 million in capital to shareholders. 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.”