Levi Strauss & Co (NYSE: LEVI) reported its financial results for the fiscal third quarter on Wednesday that beat Wall Street estimates. Shares of the company jumped nearly 4.0% in after-hours trading on raised guidance for the full year.
Levi’s said its net income printed at $193.3 million in Q3 that translates to 47 cents per share. In the same quarter last year, its net income was capped at a sharply lower $27 million or 7 cents per share. On an adjusted basis, the clothing company earned 48 cents a share versus the year-ago figure of 8 cents per share.
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The NYSE-listed firm generated $1.5 billion in revenue – an increase from $1.06 billion last year. According to FactSet, experts had forecast 38 cents of adjusted EPS on $1.48 billion in revenue.
Full-year guidance and share buyback
For the full year, Levi’s now forecasts up to $1.45 of adjusted per-share earnings, including up to 40 cents it expects in the fourth quarter. Its estimate for Q4 revenue is up to 21% growth or $1.66 billion to $1.68 billion.
In comparison, analysts are calling for $1.33 of full-year adjusted EPS, including 40 cents in the fourth quarter on $1.69 billion in Q4 revenue.
The Board of Directors also authorised a share repurchase worth $200 million on Wednesday, as per the earnings press release.
CEO Chip Bergh’s remarks
Commenting on the financial update, CEO Chip Bergh said:
We delivered a strong quarter with revenue growth versus per-pandemic 2019 levels, despite a more difficult macro-environment than we expected. We have taken pricing actions and believe we have the pricing power to mitigate inflationary pressures.
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