Levi Strauss & Co (NYSE: LEVI) reported its financial results for the second quarter on Thursday that beat Wall Street estimates. The company also raised its guidance for the full year. Shares of the company were about 5% up in after-hours trading.
Q2 financial results
Levi’s said its net earnings in the second quarter came in at $65 million that translates to 16 cents per share. On an adjusted basis, it earned 23 cents per share in Q3 versus the year-ago figure of 48 cents of per-share loss.
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The American clothing company generated $1.28 billion of revenue in the recent quarter that represents a 156% annualised growth. According to FactSet, analysts had expected $1.21 billion of revenue and 9 cents of EPS.
The news comes a day after Levi’s joined the U.S. Cotton Trust Protocol.
Other notable figures
Other notable figures in Levi’s earnings report on Thursday include a 75% year over year increase in digital sales that contributed 23% to the total quarterly revenue. Roughly 17% of the company’s worldwide stores remained closed in Q2 due to the pandemic related restrictions.
In all of its major end markets, Americas, Europe, and Asia, revenue climbed by tripe digits in the recent quarter. Only 8% of the company’s stores are now closed because of the COVID-19 crisis.
Full-year guidance and dividend
For the full financial year, Levi’s now forecasts up to $1.33 of per-share earnings. Analysts, on the other hand, are calling for $1.15 instead. The San Francisco-based company expects revenue to be around 5% up compared to 2019 levels (pre-COVID) in the back half of 2021.
On the back of hawkish quarterly performance, Levi’s also lifted its dividend to 8 cents per share for Q3. In the prior quarter (Q1), Levi’s sales had slipped 13% due to the COVID-19 restrictions. Levi’s currently has a market cap of $11.21 billion.
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