-===Levi Strauss (LEVI) reported earnings on Wed 2 Oct 24 (a/h)

 

Levi Strauss beats by $0.02, misses on revs; guides FY24 EPS in-line, lowers FY24 revenue guidance; initiates review of strategic alternatives for Dockers brand

• Reports Q3 (Aug) earnings of $0.33 per share, excluding non-recurring items, $0.02 better than the FactSet Consensus of $0.31; revenues rose 0.4% year/year to $1.52 bln vs the $1.55 bln FactSet Consensus. 
• Revs were flat on a reported basis, despite 160 basis points of FX headwind, and 2% higher on a constant-currency basis. The Levi's brand was up 5% globally. 
• In the Americas, net revenues decreased 1% on a reported basis and were flat on a constant-currency basis. Adjusting for the exit of the Denizen business, the Americas was up 2%. 
• In Europe, net revenues increased 6% on a reported basis and 7% on a constant currency basis, reflecting positive growth across a majority of markets and in both channels. 
• Asia net revenues were roughly in line with prior year on a reported basis and up 4% on a constant-currency basis. 
• Other Brands net revenues decreased 7% on a reported basis and 5% on a constant-currency basis. Dockers decreased 15% on a reported basis and -13% CC. Beyond Yoga increased 19% on a reported and CC basis. 
• DTC (Direct-to-Consumer) net revenues increased 10% on a reported basis and 12% CC. DTC growth reflected a 12% increase in the US and a 9% increase in Europe. DTC comprised 44% of revs in Q3. 
• Wholesale net revenues decreased 6% on a reported basis and -5% CC. Co issues guidance for FY24, now sees adjusted EPS at the mid-point of the $1.17-1.27 prior guidance, which is slightly below the $1.25 FactSet Consensus; co lowers FY24 revenue outlook 10/3/24, 11:26 PM Briefing.com: Hourly In Play (R) https://hosting.briefing.com/cschwab/InDepth/InPlay.htm 44/46 to +1% from +1-3% prior guidance; we compute new guidance as $6.24 bln vs. $6.32 bln FactSet Consensus. Co guides to FY24 constant-currency revs of +1.5-2.0% CC. 
• Review of Strategic Alternatives for Dockers: Co also announces that it has initiated a formal review of strategic alternatives for the Dockers brand, which could include a potential sale or other strategic transaction. Co has retained Bank of America as its financial advisor. No deadline or definitive timetable for the completion of review process has been set.