- Levi Strauss & Co LEVI reported fiscal 23 first quarter revenue growth of 6% year over year to $1.69 billion, +9% on a constant currency basis, exceeding $1.62 billion consensus.
- DTC’s net income increased 12% year over year, driven by broad-based growth in both the company’s operated stores and e-commerce across all segments. DTC revenue accounted for 42% of total sales.
- Wholesale net income was up 2% Y/Y driven by solid growth in Asia, Canada and US
- Adjusted EPS of $0.34 beat the consensus of $0.32.
- Adjusted gross margin was 55.8%, down 360 basis points from Q1FY22 mainly due to product discounts. Adjusted EBIT margin decreased 390 basis points to 11%.
- Adjusted EBITDA for the quarter was $223.7 million, down 18.9% Y/Y.
- Levi Strauss’ cash and cash equivalents totaled $321.8 million. Total inventories increased 33% year over year on a dollar basis and 21% year over year on a unit basis. Net debt was $833.8 million.
- Levi Strauss used ($271.7) million in adjusted free cash flow.
- The Company’s dividend of $0.12 per share is payable in cash on May 18, 2023, to record holders on May 4, 2023.
- The Company has $680 million remaining under its current share repurchase authorization, which has no expiration date.
- “Our first quarter results reflect the strength of our brands and the progress we are making on our strategic priorities,” said CEO Chip Bergh. “We have delivered strong growth in our international business and record-breaking sales performance in our direct-to-consumer channel.”
- outlook: Levi Strauss reiterates its FY23 sales of $6.3-$6.4 billion, up 1.5%-3% Y/Y (consensus of $6.31 billion).
- It is sticking with FY23 adjusted earnings per share of $1.30 to $1.40 (consensus $1.33).
- Price promotion: LEVI shares are trading 3.83% lower at $17.34 on the last check Thursday premarket.
- Photo via company
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