The strong earnings performance reflects a 22% increase in net revenues to $1.59 billion. The top line also exceeded the consensus estimates. The company benefited from higher prices for its leading products, including jeans and t-shirts, and stronger direct-to-customer sales that contributed to margin growth.
The company also reaffirmed its full-year outlook — continues to expect adjusted earnings to come in the range of $1.50 per share to $1.56 per share. Revenues are estimated to grow between 11% and13% to $6.4-6.5 billion, as the management sees minimal impact from the general economic slowdown and inflationary pressures.
Read management/analysts’ comments on quarterly reports
“We started the year with strong consumer demand and solid momentum across geographies, channels, and categories. Our teams’ disciplined execution of our strategic priorities enabled us to deliver strong top and bottom-line growth as we capitalize on structural tailwinds and successfully manage a dynamic operating environment,” said Chip Bergh, chief executive officer of Levi Strauss.