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© Reuters Levi (LEVI) delivers earnings beat, reports 'significant progress reducing inventory levels'
By Senad Karaahmetovic
Shares of Levi Strauss (NYSE:LEVI) are down 6.3% in pre-market Thursday despite the denim company reporting better-than-expected Q1 results.
LEVI reported EPS of $0.34 on revenue of $1.7 billion, beating the average analyst estimate for earnings of $0.32 per share on sales of $1.62B. Sales rose 6.1% year-over-year. The company also said it “made significant progress reducing inventory levels.”
On a more negative note, gross margins came in at 55.8%, missing the 56.8% consensus and falling 360 basis points year-over-year.
"Our first quarter results reflect the strength of our brands and the progress we are making against our strategic priorities," said Chip Bergh, president and chief executive officer of Levi Strauss.
The company also reaffirmed its full-year EPS and revenue guidance of $1.30-1.40 and $6.3-6.4B, respectively. Analysts were looking for FY EPS of $1.33 on sales of $6.31B.
"We are reaffirming our annual revenue and EPS guidance reflecting a cautious outlook on the macro-environment though we remain excited about the momentum in our DTC and international businesses," said Harmit Singh, chief financial and growth officer.
Vital Knowledge analysts commented:
“This isn’t a perfect quarter as GMs missed but considering the environment a beat on revs/EPS w/unchanged guidance and ongoing inventory progress is a victory.”
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