Levi Strauss & Co. recently announced financial results for the first quarter ended February 27, 2022.
“We started the year with strong consumer demand and solid momentum across geographies, channels, and categories,” said Chip Bergh, president, and chief executive officer of Levi Strauss & Co. “Our teams’ disciplined execution of our strategic priorities enabled us to deliver strong top and bottom-line growth as we capitalize on structural tailwinds and successfully manage a dynamic operating environment. The strength of our brands and strategy position us to deliver sustainable growth well into the future.”
“We achieved excellent financial results in the first quarter, driving strong double-digit revenue growth and record gross margin enabling us to deliver an adjusted EBIT margin of 14.9 percent,” said Harmit Singh, the chief financial officer of Levi Strauss & Co. “The ongoing consumer demand across our portfolio of brands and our proven ability to deliver profitable growth gives us the confidence to reaffirm our full-year outlook despite the incremental headwinds from ongoing macro challenges.”
Financial Highlights for the First Quarter
- Reported net revenues of $1.6 billion up 22%, and 26% on a constant-currency basis, versus Q1 2021 driven by strong growth across all geographical segments Gross margin was 59.3%; Adjusted gross margin was 59.4%, up 170 basis points from Q1 2021
- The operating margin was 14.7%; the Adjusted EBIT margin of 14.9%, up from 13.3% in Q1 2021
- Net income was $196 million; Adjusted net income was $189 million up from $140 million in Q1 2021
• The effective income tax rate was 20.4% compared to 7.9% in Q1 2021 • Diluted EPS was $0.48; Adjusted diluted EPS was $0.46, up from $0.34 in Q1 2021