Levi Strauss Co NYSE LEVI Reports Q3 2024 Financial Results

Intellectia.AI2024-10-03

Illustration by Intellectia.AI

Levi Strauss & Co. (NYSE: LEVI) Reports Q3 2024 Financial Results

Levi Strauss & Co. (NYSE: LEVI) has released its financial results for the third quarter, ending on August 25, 2024.

Key Financial Metrics

Metric	Q3 2024	Q3 2023	YoY Change	Consensus Estimate
Total Revenue	$1.5B	$1.5B	Flat	$1.55B
Diluted EPS	$0.05	$0.02	150%	$0.31
Adjusted Diluted EPS	$0.33	$0.28	18%	Not Provided

Levi Strauss & Co. matched its previous quarter's revenue with total sales of $1.5 billion, missing consensus estimates. Despite this, the company demonstrated robust growth in adjusted diluted earnings per share, reflecting effective cost management and margin improvement.

Revenue by Segment

Segment	% Change (Reported)	% Change (Constant Currency)
Levi's® Brand	5%	Not Provided
Americas	-1%	Flat
Europe	6%	7%
Asia	0%	4%
Other Brands (e.g., Dockers®, Beyond Yoga®)	-7%	-5%

Globally, the Levi's® brand led the performance with a 5% growth, while Europe showed strong recovery with a 6% increase in sales, or 7% on a constant-currency basis.

Key Developments and Operational Highlights

Gross margin rose by 440 basis points to 60.0%, driven by lower product costs and favorable brand mix.
Direct-to-consumer (DTC) net revenues increased by 10% on a reported basis.
Wholesale channel revenues declined by 6%.
Project Fuel resulted in restructuring charges of $3 million.
Impairment charges of $111 million related to the Beyond Yoga® acquisition were recorded.

Executive Comments

Michelle Gass, President and CEO, highlighted the strong global growth of the Levi’s® brand and the strategic focus on direct-to-consumer expansion and brand initiatives, including a new collaboration with Beyoncé. CFO Harmit Singh projected continued revenue and profitability progression into Q4, emphasizing strategic alternatives for the Dockers® brand to enhance long-term value.

Shareholder Returns

Dividends declared at $0.13 per share, payable November 14, 2024.
Share repurchases during Q3 totaled $18 million with $621 million available under the current repurchase authorization.

Forward Guidance

Levi Strauss & Co. anticipates approximately 1% growth in net revenues for fiscal 2024 and expects adjusted diluted EPS to reach the midpoint of the $1.17 to $1.27 range.

Stock Price Movement

Following the earnings release, Levi Strauss & Co.'s stock experienced a decline of 2.86%.

This summary reflects Levi Strauss & Co.'s resilient performance driven by strategic brand initiatives, improved margins, and continued investment in growth segments despite macroeconomic challenges.