US' Levi Strauss Q4FY21 revenue climbs 22% to $1.7 billion

In the fourth quarter, the company’s global digital net revenues were up 2 per cent compared to the same period in the prior year and comprised 21 per cent of fourth quarter fiscal 2021 net revenues. Wholesale net revenues increased 20 per cent primarily reflecting strong demand for the Levi's brand globally.

For 2021, the company has recorded net revenues of $5.8 billion, up 29 per cent as against 2020. Gross margin was 58.1 per cent in 2020. Net income was reported to be $554 million in fiscal 2021. The adjusted net income was $601 million in 2021, up from $84 million in fiscal 2020 and $456 million in fiscal 2019.

“We had a strong finish to 2021 and I can confidently say that we are a stronger company than ever before. Today’s results reflect robust financial performance, marked by sequential improvement through the year, despite navigating ongoing business disruption from the pandemic. Through it all, we have stayed focused on our future and our momentum continues to accelerate into 2022," said Chip Bergh, president and chief executive officer of Levi Strauss & Co. "We are well positioned for long-term, sustainable growth - our strong brand equity is driving pricing power, we’re boldly diversifying our business and continuing to expand our high margin DTC business. As good as this past year has been, I am confident the future will be even better."

"We achieved strong results, including multi-decade record revenues and profitability, delivering an adjusted EBIT margin for the full year of 12.4 per cent despite heightened supply chain challenges and product costs," said Harmit Singh, chief financial officer of Levi Strauss & Co. "This was the result of the unique strength of our brands and our ability to leverage our pricing power to more than offset inflationary pressures while also reinvesting in our growth. Looking ahead, with the foundational work we have done to advance our growth strategies and  improve our structural economics, we are highly confident in our 2022 outlook and our ability to generate even stronger results for our shareholders."

The company expects net revenues growth of 11 to 13 per cent for fiscal 2022 as compared to fiscal 2021, between $6.4 billion and $6.5 billion. The company’s outlook assumes no significant worsening of the COVID-19 pandemic, inflationary pressures or dramatic incremental closure of global economies

Fibre2Fashion News Desk (RR)