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Levi Strauss Posts Upbeat Results in Q2; Shares Gain 1.4% After-Hours

Shares of Levi Strauss & Co. (LEVI) jumped almost 1.4% in Thursday’s extended trading session after the company delivered solid second-quarter results, driven by strong sales. Levi Strauss is one of the world’s top garment brands and a leader in jeanswear globally.

The company reported revenues of $1.28 billion, which surpassed the Street’s estimates of $1.21 billion and jumped 156% from the year-ago period.

Net revenues via digital channels grew 75% year-over-year, driven by strong performance across all regions.

Earnings came in at $0.23 per share, beating consensus estimates of $0.08 per share. A loss of $0.48 per share was reported in the same quarter last year.

Levi Strauss CFO Harmit Singh said, “As we look forward, we’re raising our expectations for revenues and profits. Our balance sheet remains strong and we continue to return cash to shareholders, with dividends now back to pre-pandemic levels.” (See LEVI stock charts on TipRanks)

Furthermore, the company hiked its quarterly dividend by 33.3% to $0.08 per share for the third quarter.

Prior to the earnings release, UBS analyst Jay Sole reiterated a Buy rating on the stock but increased the price target to $36.00 from $34.00. This implies 28.6% upside potential to current levels.

Sole commented, “As pandemic recovery progresses, retail clothing brands are experiencing a boon as consumers switch out their at-home loungewear for trendier fashion just in time for back to school and in-person gatherings.”

Consensus among analysts is a Strong Buy based on 6 unanimous Buys. The average LEVI price target of $31.50 implies 12.5% upside potential from current levels. Shares have gained 125.3% over the past year.

LEVI scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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