SAN FRANCISCO - Levi Strauss & Co . (NYSE:LEVI) reported better-than-expected fourth-quarter revenue but provided weaker-than-anticipated guidance for fiscal year 2025, sending shares down 7% in after-hours trading.
The iconic denim maker posted adjusted earnings per share of $0.50 for the fourth quarter, missing analyst estimates of $0.52. However, revenue came in at $1.8 billion, surpassing the consensus forecast of $1.77 billion and representing a 12% increase YoY on a reported basis, or 8% on an organic basis.
Levi's direct-to-consumer (DTC) channel was a key driver of growth, with net revenues increasing 19% on a reported basis and 14% organically. E-commerce sales grew at a similar pace. Wholesale revenues also rose, increasing 7% on a reported basis and 3% organically.
Despite the strong quarter, investors focused on the company's outlook for fiscal year 2025. Levi Strauss forecasts earnings per share between $1.20 and $1.25, below the analyst consensus of $1.37.
Michelle Gass, President and CEO of Levi Strauss & Co., commented on the results: "We delivered a strong fourth quarter and holiday season, positioning us well as we enter 2025. Our sharpened focus on the core Levi's® brand is working, with broad-based strength across women's, men's, DTC and wholesale."
The company reported improved gross margins, which rose 350 basis points to 61.3% in the fourth quarter, driving solid operating margin expansion.
Regionally, the Americas saw net revenues increase 12% on a reported basis and 9% organically, with U.S. growth of 6% organically. Europe and Asia also experienced growth, with net revenues up 15% and 9% respectively on a reported basis.
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