Levi Strauss Q3 Profit, Revenues Beat Street View; Shares Up 3%

Shares of Levi Strauss & Co. (LEVI) gained nearly 3% in extended trading session on Wednesday after the apparel company's adjusted earnings and revenues for the third quarter trounced Wall Street estimates.

San Francisco-based Levi Strauss reported third-quarter profit of $193 million or $0.47 per share, up from $27 million or $0.07 per share last year.

Adjusted earnings for the quarter were $0.48 per share, compared to $0.08 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude one-time items.

Third-quarter revenues surged 41% to $1.50 billion from $1.06 billion last year. Analysts had a consensus revenue estimate of $1.48 billion for the quarter.

E-commerce growth surged 41% from last year, while revenues through all digital channels grew 87%.

Wholesale revenues increased 45 percent reflecting strong demand in the U.S. and Europe. Direct-to-Consumer revenues increased 34 percent due to increased revenues from our company-operated stores.

"We delivered a strong quarter with revenue growth versus pre-pandemic 2019 levels, despite a more difficult macro-environment than we expected," said Chip Bergh, president and chief executive officer of Levi Strauss & Co. "These results reflect the strength of the Levi's brand, improving momentum in our direct-to-consumer business and the scale and agility of our supply chain network where we have executed against macro-headwinds exceptionally well."

Looking forward to the fourth quarter, the company expects adjusted earnings of $0.38 to $0.40 per share and revenue growth of 20 to 21%. Analysts currently estimate earnings of $0.39 per share on revenue growth of 22%.

LEVI closed Wednesday's trading at $24.24, down $1.31 and 5.13%, on the NYSE. The stock, however, gained $0.71 and 2.93% in the after-hours trading.

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