Levi Strauss reported adjusted earnings per share of 28 cents, surpassing the expected 24 cents, and revenue of $1.56 billion, exceeding the anticipated $1.52 billion. The company has raised its full-year adjusted earnings per share guidance to a range of $1.46 to $1.52, which is above the previous range and analyst expectations of $1.50.
Additionally, Levi's sales outlook has been increased to a growth forecast of 7% to 7.5%, up from 5.5% to 6.5%, again exceeding expectations of 6.6%. CFO Harmit Singh noted that the growth is expected to be evenly split between price increases and unit sales. Despite these positive results, Levi's shares fell over 5% in after-hours trading.
CEO Michelle Gass highlighted the resilience of their core consumer base, noting that two-thirds of the sales growth was driven by increased unit sales rather than just price hikes. This strong performance across various product lines, including core Levi's and premium offerings, has led the company to feel confident in its revised guidance and dividend increase