Levi Strauss (NYSE:LEVI) shares dropped Thursday after the apparel firm known for its denim jeans reported its fiscal fourth quarter results, and reaffirmed its annual revenue and per-share earnings guidance. CFO Harmit Singh said the annual guidance reflects “a cautious outlook on the macro-environment.” Otherwise, Levi Strauss beat expectations on the top and bottom lines, reporting earnings of 34 cents per share on revenue of $1.69 billion. Analysts polled by Refinitiv forecasted earnings of 32 cents per share on revenue of $1.62 billion.
Said CEO Chip Bergh. “Our first-quarter results reflect the strength of our brands and the progress we are making against our strategic priorities. We delivered strong growth in our international business and record-breaking revenue performance in our direct-to-consumer channel. As we celebrate the 150th anniversary of the iconic 501® jean, we are deepening connections with consumers and cementing loyalty with the next generation of Levi’s® fans. This past quarter in the U.S., we were the market share leader among the key 18- to 30-year-old consumer, and we continued to grow share in our women’s denim bottoms business, further narrowing the gap to number one."
Strauss reported net revenues of $1.7 billion increased 6%, and 9% on a constant-currency basis versus Q1 2022. Net income was $115 million. The Company paid a dividend of $0.12 per share, up nearly 20% from prior year; approximately $56 million in capital returned to shareholders.
LEVI shares dipped in price $2.28, or 12.7%, to $15.75.
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