Levi Strauss & Co (NYSE:LEVI) shares gained more than 6% after Wednesday’s closing bell after the apparel brand posted better-than-expected financial results for the fiscal first quarter and upped its full-year profit forecast.
The company, known for its iconic jeans, posted adjusted earnings per share (EPS) of $0.26, ahead of estimates of $0.20, for the quarter ended February 25, 2024 but a decline from $0.34 in Q1 2023.
Revenue was 8% lower than the year-ago quarter at $1.6 billion, but ahead of estimates of $1.53 billion.
Direct to Consumer (DTC) revenues increased 7%, making up a record 48% of 1Q revenues, while Wholesale revenues decreased 9% when normalizing for the shift in wholesale shipments in Q1 2023.
Additionally, Levi’s raised its 2024 EPS forecast from between $1.17 to $1.27 from its earlier guidance range of $1.15 to $1.25.
The company reiterated its full-year revenue expectation of growth between 1% and 3%.
This guidance is in line with analysts’ forecasts of EPS of $1.22 and revenue growth of 2.4% to $6.33 billion.
“We started the year strong delivering results above expectations, underscoring the power of the Levi’s brand and the progress we are making on our strategic priorities,” Levi’s CEO Michelle Gass commented.
“Both newness and strength in our core offerings are fueling consumer demand and driving meaningful market share gains.”
The company’s finance chief Harmit Singh added: “The structural economics of our business improved in Q1 driven by significant gross margin expansion, disciplined expense controls and efficient working capital management.”
He continued: “As a result, we are confident in our ability to return the topline to mid-single-digit growth in the second half of this year and are increasing our full-year EPS expectations.”
Levi’s shares had added 6.2% at $19.82 shortly following the release of its earnings report.