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April 7, 2022

Levi Strauss registers 22% net revenue increase for Q1 2022

The retailer expects its net revenues for the full year to be between $6.4bn and $6.5bn.

US-based clothing retailer Levi Strauss has registered net revenues of $1.6bn for the first quarter (Q1) of the fiscal year 2022 (FY22).

This represents a 22% increase from the corresponding period of the previous year.

The revenues grew 26% on a constant-currency basis, driven by strong growth across all geographical segments.

During the three months to 27 February, Levi Strauss’ net income increased 37% to $196m, while its adjusted net income was $189m, up 35% from Q1 2021.

The company’s operating income was $234m compared with $177m in the same quarter the prior year. This was due to higher net revenues and its gross margin partially offset, among other factors.

The company’s earnings per share (EPS) were $0.46, up from $0.34 in the same period of FY21.

Gross profit for the quarter grew from $760m in Q1 2021 to $944m.

For the full year, Levi Strauss expects its net revenues to be between $6.4bn and $6.5bn, growing by 11-13% compared with FY21.

The company expects an EPS of between $1.50 and $1.56.

Levi Strauss president and CEO Chip Bergh said: “We started the year with strong consumer demand and solid momentum across geographies, channels and categories.

“Our teams’ disciplined execution of our strategic priorities enabled us to deliver strong top and bottom-line growth as we capitalise 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.”

In January this year, Levi Strauss reported its net revenues for FY21 had increased by 29% to $5.8bn on a reported basis.

The company generated a net income of $554m and an adjusted net income of $601m during the year, the latter being an increase from $84m in FY20.