Source: Dreamstime
Reading time: 2 minutes
Last week’s earnings season was all about apparel as the popular U.S. clothing company crushed Wall Street estimates and showed that people are still willing to shop for clothes the “old-school way” despite the pandemic.
Performance for Q3 2021
“Our supply chain really is a source of competitive advantage. We can move products around with a lot of agility. . . . We’ve been running the business against different scenarios for the last 18 months.”
Chip Bergh, CEO
Despite the currently ongoing supply chain bottlenecks that shrink the profit margins of many companies regardless of industry, Levi Strauss came on top with a stellar Q3 earnings report that boosted its stock with more than 2% in extended trading after the news.
According to the company, it achieved this strong performance thanks to the increased attention it received during the annual back-to-school season and because it has more diversified manufacturing. For instance, Vietnam, where production facilities have experienced frequent shutdowns since the pandemic, accounts for only 4% of Levi’s global volume, which means it was able to more easily adapt to the post-covid market.
Here’s how Levi Strauss did for the fiscal period:
– Gross revenue: $1.5 billion (41% y/y increase) vs. expectations for $1.48 billion
– Net income: $193 million vs. $27 million for the same period last year
– Earnings per share: 48 cents vs expectations for 37 cents
– Wholesale revenue: 45% y/y increase, of which digital transactions accounted for about 20% of Levi’s total sales
– Closed stores due to COVID-19: about 10% of the company’s stores were closed throughout the fiscal quarter (mostly in Asia)
– Losses due to supply chain bottlenecks: close to $10 million
Levi’s outlook for Q4 2021
“We delivered a strong quarter with revenue growth versus pre-pandemic 2019 levels, despite a more difficult macro-environment than we expected. . . . Our future is bright given our iconic Levi’s® brand and the acquisition of Beyond Yoga, which establishes our position in the fast growing, high-margin premium activewear market.”
Chip Bergh
Assuming that the pandemic situation won’t worsen, Levi is currently expecting year-over-year revenue growth of between 20% and 21%, as well as between 38 and 40 cents as earnings per share (between $1.43 to $1.45 for the full fiscal year). If this forecast rings true, this would mean that the company would be looking at a FY revenue growth of 27% or close to the pre-pandemic sales figures that the company had enjoyed back in 2019.
Upcoming reports
See the full list of upcoming earnings reports for 11-15 October in the tables below.
Tuesday, 12th October 2021
| Country | Company | Fiscal period |
|---|---|---|
| USA | Fastenal Co | Q3 2021 |
| Kingdom of the Netherlands | Just Eat Takeaway.com NV | Q3 2021 |
| Germany | Gerresheimer AG | Q3 2021 |
Wednesday, 13th October 2021
| Country | Company | Fiscal period |
|---|---|---|
| USA | JPMorgan Chase & Co | Q3 2021 |
| USA | BlackRock Inc | Q3 2021 |
| India | Wipro Ltd | Half Year 2022 |
Thursday, 14th October 2021
| Country | Company | Fiscal period |
|---|---|---|
| USA | Alcoa Corp | Q3 2021 |
| USA | UnitedHealth Group Inc | Q3 2021 |
| USA | US Bancorp | Q3 2021 |
| USA | Wells Fargo & Co | Q3 2021 |
| USA | Citigroup Inc | Q3 2021 |
| USA | Morgan Stanley | Q3 2021 |
| USA | Bank of America Corp | Q3 2021 |
| USA | Progressive Corp | Report for September 2021 |
| USA | Domino's Pizza Inc | Q3 2021 |
| USA | Walgreens Boots Alliance Inc | Q4 2021 |
| Taiwan | Taiwan Semiconductor Manufacturing Co Ltd | Q3 2021 |
| Germany | Suedzucker AG | Q2 2022 |
Friday, 15th October 2021
| Country | Company | Fiscal period |
|---|---|---|
| USA | Truist Financial Corp | Q3 2021 |
| USA | PNC Financial Services Group Inc | Q3 2021 |
| USA | Goldman Sachs Group Inc | Q3 2021 |
Saturday, 16th October 2021
| Country | Company | Fiscal period |
|---|---|---|
| India | HDFC Bank Ltd | Q2 2022 |
***
Wish to trade on the global markets? Open a demo account in Delta Trading and test your best strategies in a real market environment, without any risk of losing real funds.
