US-based clothing company Levi Strauss has reported revenue of $1.5bn for the third quarter (Q3) of fiscal 2022 (FY22).

The company registered an increase of 1%, or 7% on a constant-currency basis, from the same period of the prior year (FY21).

During the quarter, Levi Strauss’ direct-to-customer (DTC) net revenues rose by 2%, while net revenues from its wholesale and global digital sales increased by 1% and 9% respectively from Q3 2021.

The company’s gross profit for the three months to 28 August was $863m, up slightly from $862m in the same quarter of the prior year.

Its Q3 gross margin was 56.9% of its net revenues, against 57.6% a year earlier, while its adjusted gross margin was 56.9%, down by 60 basis points (bps) from Q3 2021.

Levi Strauss’ operating margin was 13.1% and its adjusted earnings before interest and tax (EBIT) margin was 12.4%, down from 14.8% in the same period of FY21.

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By GlobalData

The firm’s net income was $173m, down from $193m in the same period of last year, while its adjusted net income was $161m.

The company recorded diluted earnings per share (EPS) of $0.43, against $0.47 in the same quarter of last year.

Levi Strauss president and CEO Chip Bergh said: “Despite a more challenging environment, we delivered solid third-quarter results.

“The Levi’s brand grew 6% in constant-currency, hitting a ten-year record third-quarter sales result.

“While we expect the macroeconomic backdrop to remain unpredictable over the next few quarters, our strong brands, diversified business model and proven team position us to deliver on our long-term objectives.”

For the full year, Levi Strauss expects a net revenue growth of 6.7% to 7.0% and adjusted diluted EPS of between $1.44 and $1.49.

The company previously registered $1.5bn in net revenue for the second quarter of the year.