Levi Strauss & Co. has reported their earnings for the fourth quarter this week, making the announcement on Wednesday, with shares tanking 7.6% in after-hours trade after the company issued weaker than expected guidance.
Net revenues grew by 12% on a reported basis and 8% organic, reaching US$1.8 billion.
Direct To Customer revenues also increased, reaching 19% on a reported basis and 14% organic.
Earnings per share came in at $0.46 and margins rose by 350 basis points to 61.3%.
Operating margins came in at 11.5% compared to the same time twelve months prior, reported at 9.2%.
Global Performance
Globally, the jeans giant reported increases in all its major markets from the 12-months previously.
Asia remains the weakest market for the brand, but still saw a boost from US$262 million to $286, from the previous year’s fourth quarter.
An iconic U.S. staple, it was no surprise Levi Strauss remained strongest in the Americas, growing from $888mil in the 2023 to $995mil a year on, during a 12 month period of heightened patriotic sentiment around the federal election.
The company also confirmed in the report that they would be continuing their ad campaign with pop star Beyoncé , which launched in September of last year.
New Year, New Guidance
Levi Strauss also adjusted their guidance for 2025, predicting reported net revenues and organic net revenues to both see growth, from 1% to 2% and 3.5% to 4.5% respectively,
Adjusted EBIT margins are expected to expand from 10.9% to 11.1%.
The diluted EPS guidance also shifted $1.20 to $1.25, citing an approximate 20c headwind from FX and a higher tax rate.
“We delivered a strong fourth quarter and holiday season, positioning us well as we enter 2025,” said President and CEO, Michelle Gass.
“Our improved performance is a direct result of the work we have done to transform the company into a best-in-class omnichannel retailer. We have a strong plan for the year ahead supported by a robust product pipeline."
At the time of writing, Levi Strauss (NYSE: LEVI) stock was trading at US$16.72, down 7.6% from Wednesday's close of $18.09. The stock reached a day low of $17.54 and a day high of $18.73. Levi Strauss' market cap stands at $7.18 billion.