Salem Radio Network News Wednesday, August 4, 2021

Business

Levi Strauss forecasts profit above estimates as apparel demand bounces back

(Reuters) -Levi Strauss & Co forecast fiscal 2021 profit above market estimates on Thursday as the apparel maker benefits from higher demand for its jeans, tops, and jackets from customers returning to their normal routines following COVID-19 vaccinations.

Shares of the company climbed about 4% in extended trading as it also reported better-than-expected results for the second quarter and increased its quarterly dividend by 2 cents to 8 cents.

Peers including American Eagle and Abercrombie & Fitch all signaled a lift to sales as customers abandon their pajamas and work-at-home lounge wear for outdoor clothes.

“Revenues in most markets are recovering faster than anticipated,” Chief Financial Officer Harmit Singh said in a statement.

The company posted record margins for the quarter ended May 30, as it sold more products directly to consumers at full prices.

Levi, known for its Signature and Levi’s 501 jeans, has also received a boost from collaborations with luxury brands, including Valentino, and from people refreshing their wardrobes with loose-fit jeans.

The parent of Denizen and Dockers brands forecast full-year adjusted earnings per share between $1.29 and $1.33, above Wall Street expectations of $1.15.

Levi also forecast revenue to grow 28% to 29% in the second half of fiscal 2021 from a year earlier and come in above 2019 pre-pandemic levels.

Net revenue rose to $1.28 billion in the second quarter from $497.5 million a year earlier, beating estimates of $1.21 billion, according to IBES data from Refinitiv.

On an adjusted basis, the company earned 23 cents per share, compared with estimates of 9 cents.

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Maju Samuel)

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