Levi Rises on Rosier Outlook, Quarterly Sales Performance
(Bloomberg) -- Levi Strauss & Co. posted third-quarter sales that topped Wall Street’s expectations, a sign that consumers are still willing to shop for apparel despite ongoing uncertainty around Covid-19. The denim maker also boosted its full-year profit outlook.
- Sales in the period ending Aug. 29 rose to $1.5 billion, the company said Wednesday in a statement. That beat the average of analysts’ estimates compiled by Bloomberg.
- Levi now sees adjusted profit of as much as $1.45 a share for the full year -- up from previous guidance in a range of $1.29 to $1.33.
- Levi, like other apparel makers, is grappling with challenges such as supply-chain bottlenecks and factory outages in Vietnam, a major industry hub. But the company remains optimistic about its outlook as it pushes through price increases and boosts its direct-to-consumer business.
- Cotton prices have been surging, driving up expenses for apparel makers, who may pass along costs in the form of higher retail prices. It could also clothing companies to rely more on other materials like polyester. Analysts will be to keen to hear how the company is responding to the situation when executives host a conference call Wednesday to discuss results.
- In the statement, Chief Financial Officer Harmit Singh said Levi has the ability to increase prices further in order to mitigate inflation.
- The shares rose as much as 5.2% in aftermarket trading in New York. Levi climbed 21% this year through Wednesday’s close.
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