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Tuesday, July 9, 2019

=Levi Strauss (LEVI) reported earnings on Tue 9 July 19 (a/h)

  • Second quarterly report since going public on March 21. 
  • Heading into the report, the stock has been red-hot, up 12% over the past week. The jeans and apparel maker posted solid Q1 results back on April 9 and based on the stock action it appears investors are anticipating another positive report tonight.

Levi Strauss beats by $0.05, beats on revs, raises FY19 Adj. EBIT margin guidance
  • Reports Q2 (May) earnings of $0.17 per share, $0.05 better than the $0.12 Capital IQ Consensus. Revenues rose 5.4% year/year to $1.31 bln vs the $1.29 bln S&P Capital IQ Consensus.
  • The company's direct-to-consumer business grew reported revenues by 9% in the second quarter, primarily due to performance and expansion of the retail network and e-commerce growth.
  • Adj. EBIT margin decreased to 6.2% from 6.8% in yr ago quarter.
  • Guidance: Co raises FY19 adj. EBIT margin improvement to +10 bps from flat to slightly higher; constant currency net rev to the high end of the mid-single digit range from +MSD previously.
Levi Strauss follow up: Beats earnings and revenue, misses gross margin estimates
  • Levi's reported solid second quarter results. Earnings came in at $0.17 on an adjusted basis versus the $0.12 S&P Capital IQ Consensus. Revenue rose 5% to $1.31 bln vs. $1.29 bln consensus; we initially compared the second quarter (May) results to the first quarter (February) estimates.
  • One blemish came in the gross margin line item, which came in at 53.3%, missing estimates. Levi said 100 basis-points of unfavorable currency was partially offset by less discounted sales and the margin benefit from growth in the direct-to-consumer channel.
  • The company slightly raised its outlook for fiscal 2019: Adj. EBIT margin improvement to +10 bps from flat to slightly higher, constant currency net revenue growth to the high end of the mid-single digit range from mid-single digit growth previously.
  • The stock is down 6% after hours.

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