Levi Strauss Co NYSE LEVI Reports Q3 2024 Financial Results
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.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
Share
Want more financial insights delivered directly to your inbox?
Subscribe now and receive handpicked financial news, insights, and trending topics.
