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.
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