Levi Strauss beats estimates, offers upbeat guidance for fiscal year

Levi Strauss on Wednesday posted net and gross that topped Wall Street's expectations.

Shares of the institution roseate successful after-hours trading arsenic the institution besides offered upbeat income guidance for its caller fiscal year.

Here's however Levi did successful its fiscal 4th fourth compared with what Wall Street was anticipating, based connected a survey of analysts by Refinitiv:

• Earnings per share: 34 cents, adjusted, vs. 29 cents expected
• Revenue: $1.59 cardinal vs. $1.57 cardinal expected

The company's reported nett income for the three-month play that ended Nov. 27 was $151 million, oregon 38 cents per share, compared with $153 million, oregon 37 cents per stock a twelvemonth earlier. 

Sales were $1.59 billion, down 6% from a twelvemonth earlier.

Levi has been grappling with a slowdown successful discretionary spending and a reduced request for denim, starring immoderate analysts to downgrade the stock.

The denim marque saw a driblet successful nonstop to user revenue, which the institution blamed connected store closures successful Russia.

Direct to user income declined 2% aft Levi closed astir each of its shops successful Russia, a large marketplace for the denim retailer, Levi CEO and President Chip Bergh told CNBC. Still, Levi's nonstop channels saw a beardown Christmas play and income accrued 10% successful November and December compared to the anterior year, the institution said.

Digital income were besides down 7% year-over-year, which the institution attributed to a instrumentality to stores and a cooldown connected online shopping. The retailer has hired a caller main integer serviceman to amended the online buying acquisition and boost sales. The caller main antecedently oversaw integer operations for Nordstrom.com and NordstromRack.com.

Europe volition stay a beardown absorption for Levi successful the coming fiscal quarter, Bergh said. The retailer plans to unfastened astir 100 caller stores crossed Europe, betwixt 70 and 80 connected a nett basis.

For fiscal 2023, the bluish jeans mainstay expects revenues betwixt $6.3 cardinal and $6.4 billion, translating to maturation of 1.5% to 3% year-over-year, arsenic agelong arsenic ostentation and pandemic-related headwinds don't get immoderate worse. The institution expects adjusted net per stock of $1.30 to $1.40. Wall Street is estimating $6.27 cardinal successful income and $1.35 net per share.

Levi's main fiscal officer, Harmit Singh, volition besides beryllium the company's main maturation officer, effectual immediately, Bergh announced successful a quality release. He'll beryllium focusing connected expanding the company's maturation into direct-to-consumer, women's apparel and its different brands, Beyond Yoga and Dockers, among different initiatives.

Find the afloat net merchandise from Levi here.