Levi Strauss’s results surpass estimates of high demand, rising Reuters prices

Levi Strauss’s results surpass estimates of high demand, rising Reuters prices

© Reuters. FILE PHOTO: Label Levi Strauss & Co. seen on clothes at the Woodbury Common Premium Outlets store in Central Valley, New York, USA, February 15, 2022. REUTERS / Andrew Kelly / File Photo

Author: Ananya Mariam Rajesh

(Reuters) – Levi Strauss & Co.’s quarterly results topped Wall Street estimates on Wednesday, aided by rising prices and strong demand for its jeans, T-shirts and jackets as more people go out and attend social events.

Shares of jeans manufacturers, which confirmed their revenue and profit forecast for 2022, rose by about 2% in extended trading.

Levi has benefited from price increases aimed at mitigating the impact of supply chain disruptions, stock shortages and inflationary pressures, while the accelerating trend of high-rise jeans and loose clothing has also helped boost sales at companies such as Levi and Wrangler.

Double-digit sales growth in each market helped the company alleviate some of the problems, and higher full-price sales and lower promotions improved the company’s performance, said Telsey Advisory Group retail analyst Dana Telsey.

Levi’s revenue in the first quarter rose 21.8% to $ 1.59 billion, compared to an average analyst estimate of $ 1.55 billion, according to IBES from Refinitivo.

The net income of the San Francisco-based company for the quarter ended Feb. 27 rose to $ 195.8 million, or 48 cents a share, from $ 142.5 million, or 35 cents a share, a year earlier.

Excluding items, Levi earned 46 cents per share, above estimates of 42 cents per share.

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