Shares of the denims maker, which reaffirmed its income and revenue forecast for 2022, rose about 2% in extended trading.
Levi has benefited from cost boosts aimed at mitigating the affect of provide chain disruptions, inventory shortages and inflationary pressures, while an accelerating pattern for significant-increase jeans and loose-fitting outfits has also assisted travel sector-huge profits.
Double-digit income expansion in just about every current market helped the business offset some of the headwinds, and much more total-price tag gross sales and reduced promotions boosted the firm’s efficiency, Telsey Advisory Team retail analyst Dana Telsey stated.
“We are not observing any true pushback on pricing at all at this point,” Main Govt Officer Charles Bergh stated in the earnings get in touch with, incorporating that there was room for stronger pricing in the 2nd 50 percent of the year, which would be decided based on expenses incurred by the business.
The San Francisco-primarily based firm’s first-quarter profits rose 21.8% to $1.59 billion, in comparison with analysts’ normal estimate of $1.55 billion, in accordance to IBES details from Refinitiv.
Levi Chief Economical Officer Harmit Singh, nonetheless, reported that supply chain-linked problems lower earnings possibilities by about $60 million, or 5%, mainly in the United States.
Excluding objects, Levi earned 46 cents for every share, over estimates of 42 cents for every share.
Independently, Levi explained in a filing it would critique property certain to Russian professional business for impairment in the next quarter.
The firm in March suspended business functions in Russia, including new investments, subsequent the country’s invasion of Ukraine.