Levi Strauss & Co. reported positive financial results for its second fiscal quarter, exceeding Wall Street expectations for both earnings and revenue. The company now projects its full-year adjusted earnings per share to fall between $1.46 and $1.52, an increase from its previous estimate of $1.42 to $1.48. This outlook surpasses the anticipated $1.50 per share.
In terms of sales, Levi expects a growth rate between 7% and 7.5% for the full year, revised upward from the earlier guidance of 5.5% to 6.5%. This growth is expected to be driven equally by price increases and sales volume, as noted by Finance Chief Harmit Singh.
For the quarter ending May 31, Levi’s reported a net income of $87.3 million, or 22 cents per share, up from $67 million, or 17 cents per share, from the same period last year. Revenue also increased to $1.56 billion from $1.45 billion, marking an 8% rise. However, despite these positive results, Levi’s shares experienced a decline of over 5% in after-hours trading.
CEO Michelle Gass emphasized the resilience of the core consumer base, noting that about two-thirds of the quarter’s sales growth stemmed from increased unit sales rather than just price hikes. She indicated ongoing strength in key product segments, including core items and premium lines, affirming the company’s confidence in its revenue guidance and the decision to increase its dividend.
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