Levi Strauss & Co. ($LEVI) Earnings (Q1 FY22)

 Levi Strauss & Co. ($LEVI) Earnings and Opinion:


Levi Strauss & Co. is a company in the Consumer Cyclical sector and operates in the Apparel Manufacturing industry. The company manufactures and sells apparel for men, women, and children worldwide. Levi Strauss & Co was founded in 1853 and is currently headquartered in San Francisco, California. The company is fairly new to the public market with its IPO coming back in 2019.

Levi Strauss & Co EPS and Revenue (Q1 FY22):

  • EPS of $0.46 beating expectations of $0.42
  • Revenue of $1.6B beating expectations of $1.56B
  • EPS was up 35% (YOY) and Revenue was up 22% (YOY)
Levi Strauss & Co Q1 Financial Highlights:
  • Gross Margin was 59.3%, up 170 basis points (YOY)
  • Net Income was $196M, Adjusted net income was $189M
  • Operating Margin was 14.7%
Levi Strauss & Co Guidance FY22:
  • Net Revenues growth of 11-13%
  • Adjusted Diluted EPS of $1.50-$1.56
Opinion:
Levi Strauss & Co is currently trading a tad bit higher after reporting earnings this afternoon. The company beat expectations for both EPS and Revenue. Levi & Strauss saw strong demand over the last quarter, which in turn allowed the revenue to increase. They were also able to use this strong demand of their product in their favor by offsetting it with supply-chain woes pretty much affecting any production businesses. Levi Strauss & Co was also able to effectively raise prices of their products without ruining demand, which you have to tip your cap to a business that does this. This means the company is producing high quality products when consumers are continually coming back to the product, even at higher price levels. Personally, I do not have any ownership in this company, nor do I necessarily plan on it. I think it does have some quality with it, but I see most clothing retailers as seasonal stores. The demands for products will differ among the year causing the earnings to be lopsided in a sense. However, I have to give credit to Levi Strauss & Co because they are doing as fairly good job on the stock market so far in its first couple years of trading. If you are into Apparel Manufacturing stocks, this may not be a bad option for you at all. At this moment, I see money going into other industries and therefore you will probably get higher returns investing elsewhere.

*Information from Yahoo Finance, Levi Strauss, and Nasdaq
*Estimates attained from Zacks

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