Levi Strauss & Co. (NYSE: LEVI) has started the new fiscal year on an upbeat note, reporting stronger-than-expected earnings and revenues for the first quarter of 2022. The apparel giant also reaffirmed its full-year 2022 guidance. The company’s stock, which has declined around 22% since the beginning of the year, traded higher early Tuesday.
First-quarter net income, excluding one-off items, rose sharply to $0.46 per share from $0.34 per share in the same period of 2021. The reported net income was $195.8 million or $0.48 per share, compared to $142.5 million or $0.35 per share last year. The latest number also topped the market’s expectations.
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.
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“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.