Q3 2024 Levi Strauss & Co Earnings Call Transcript
Key Points
- Levi Strauss & Co (LEVI) reported a 2% increase in net revenues in constant currency, with a 5% growth in the Levi's brand globally, marking the best quarterly growth for Levi's in two years.
- The company achieved record Q3 gross margins of 60%, enabling a 250 basis points expansion in adjusted EBIT margin and double-digit adjusted diluted EPS growth.
- Direct-to-consumer (DTC) sales were up 12%, with strong performance in the US and Europe, and e-commerce sales increased by 18%.
- Levi's women's business grew 11%, solidifying its position as the number one women's denim brand in the US.
- The company launched a significant global campaign with Beyoncé, expected to drive further brand engagement and sales growth.
- The Dockers brand underperformed, leading Levi Strauss & Co (LEVI) to explore strategic alternatives, including a potential sale.
- Challenges in China and Mexico impacted overall performance, with China facing macroeconomic headwinds and Mexico wholesale affected by a cybersecurity breach.
- US wholesale sales were down 2%, continuing to be a headwind to overall revenue growth.
- The company faced a $0.05 EPS headwind from tax, despite achieving profitability targets.
- Foreign exchange fluctuations, particularly the Mexican peso against the dollar, negatively impacted revenue.
Good day, ladies and gentlemen, and welcome to the Levi Strauss & Company third-quarter fiscal 2024 earnings conference call for the period ending August 25, 2024. (Operator Instructions)
This conference call is being recorded and may not be reproduced in whole or in part without written permission from the company. This conference call is being broadcast over the Internet, and a replay of the webcast will be accessible for one quarter on the company's website, levistrauss.com.
I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Company.
Thank you for joining us on the call today to discuss the results for our third quarter fiscal 2024. Joining me on today's call are Michelle Gass, our President and CEO; and Harmit Singh, our Chief Financial and Growth Officer. We've posted complete Q3 financial results in our earnings release on the IR section of our website, investors.levistrauss.com. The link to the
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
