US brand Levi's revenue up 15% to $1.5 bn in Q2 2022

The gross margin of the company was 58.1 per cent, while the adjusted gross margin was 58.2 per cent, flat from Q2 2021. The operating margin was 5.2 per cent and the adjusted EBIT margin was a Q2 record 9.9 per cent, up from 9 per cent in Q2 2021. The net income was $50 million, and the adjusted net income was $117 million, up from $93 million in Q2 2021, according to Levi Strauss & Co’s Q2 2022 financial results.

The decrease in the operating income reflected $60 million of charges ($0.15 per diluted share) related to the Russian-Ukraine crisis, which was primarily full impairment of store assets, PP&E, and goodwill. The diluted EPS was $0.12, and the adjusted diluted EPS was $0.29, up from $0.23 in Q2 2021.

"Our second quarter results demonstrate the power of our strategy, which continues to support strong revenue growth and margin expansion," said Chip Bergh, president and chief executive officer of Levi Strauss & Co. "Our brands are resonating with consumers across geographies, channels and product categories. By continuing to advance our most impactful growth drivers — being brand-led, direct to consumer first, and diversifying the portfolio, we are well-positioned to continue to drive growth and create significant value for all our stakeholders."

In fiscal 2022, the company expects net revenues growth of 11-13 per cent compared to FY 2021, between $6.4 billion and $6.5 billion.

The company designs and markets jeans, casual wear, and related accessories for men, women, and children under the Levi's, Dockers, Signature by Levi Strauss & Co., Denizen, and Beyond Yoga brands. Its products are sold in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,200 brand-dedicated stores and shop-in-shops. Levi Strauss & Co’s 2021 net revenues were $5.8 billion, the release added.

Fibre2Fashion News Desk (NB)