Apparel company Levi Strauss & Co. (NYSE: LEVI) has reported stronger-than-expected adjusted earnings for the third quarter of 2022, though the latest number decreased from last year. There was a modest increase in revenues, but the top line missed estimates. The company’s stock suffered a big loss after the announcement, paring most of the pre-earnings gains.
Third-quarter net earnings, adjusted for one-off items, dropped to $0.40 per share from $0.48 per share last year but came in above the market’s projection. Net profit decreased to $172.9 million or $0.43 per share in the August quarter from $193.3 million or $0.47 per share in the corresponding period of last year.
The San Francisco-based company, which is known for the popular Levi’s brand of denim jeans, said its third-quarter revenues edged up 1% annually to $1.52 billion. Market watchers had predicted stronger growth. A double-digit fall in the European market was offset by higher sales in the other regions.
At 56.9%, the third-quarter adjusted gross margin was down 60 basis points from the same period in 2021, which also fell short of expectations. Meanwhile, the management lowered its full-year adjusted earnings guidance to the range of $1.44 per share to $1.49 per share, citing elevated inflation and unfavorable exchange rates. However, Levi’s executives exuded confidence that the company is well-positioned to deliver on its long-term goals.
“While we expect the macroeconomic backdrop to remain unpredictable over the next few quarters, our strong brands, diversified business model and proven team position us to deliver on our long-term objectives. We have separated ourselves from the competition by making the right moves in challenging times, and this environment is no different. We will operate with discipline and lean into our strengths to further expand our lead for the years to come,” said Chip Bergh, chief executive officer of Levi Strauss.
Shares of Levi Strauss traded sharply lower early Friday, after closing the previous session lower. The stock has lost about 43% in the past twelve months.
Looking for more insights on the earnings results? Click here to access the full transcripts of the latest earnings conference calls!
The performance of Broadcom, Inc. (NASDAQ: AVGO) has been impressive in the last few years -- a period of high uncertainty -- as the successful business model helped it remain
Shares of Delta Air Lines Inc. (NYSE: DAL) were down 2% on Monday. The stock has dropped 12% year-to-date. The company delivered double-digit revenue growth for its most recent quarter
Autodesk, Inc. (NASDAQ: ADSK) is a market leader in computer-assisted design software, catering mainly to the architecture, engineering, construction, and manufacturing sectors with its mission-critical solutions. The company, which is