Levi Strauss revenue thrives on pricier denims, strong demand

(Reuters) – Levi Strauss & Co trumped estimates for quarterly revenue on Thursday, bolstered by higher prices and strong demand for its denim jeans as consumers get back to offices and social events.

The company’s shares rose about 5% in extended trading, after Levi also bumped up its quarterly dividend by 20% to 12 cents per share.

Comfortable clothing has stayed in fashion even as the world returns to normal after the pandemic, boosting sales of Levi’s baggy and high-waisted jeans.

That helped it record a 15% jump in second-quarter revenue despite price hikes to counter surging costs that are affecting many U.S. companies.

The Dockers and Denizen owner’s total revenue of $1.47 billion came in above analysts’ expectation of $1.43 billion, according to IBES data from Refinitiv.

It saw a 17% rise in the Americas region while Asia notched a 16% increase.

However, net income for the quarter ended May 29 fell 23% to $49.7 million, or 12 cents per share, as the jeans maker recorded $60 million in charges related to its decision to suspend operations in Russia.

Excluding items, the 169-year-old company earned 29 cents per share, beating estimates of 23 cents, and also reaffirmed its revenue and profit forecasts for 2022.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Devika Syamnath)

tagreuters.com2022binary_LYNXMPEI6610W-VIEWIMAGE

tagreuters.com2022binary_LYNXMPEI6610M-VIEWIMAGE