Levi Strauss Q2 Results Beat Street View

(RTTNews) - Shares of Levi Strauss & Co. (LEVI) gained nearly 3% in extended trading session on Thursday after the apparel company's revenues and adjusted earnings trumped Wall Street estimates, driven by strong demand helped by COVID-19 vaccinations.

San Francisco-based Levi Strauss reported second-quarter profit of $65 million or $0.16 per share, a turnaround from a loss of $364 million or $0.91 per share last year.

Adjusted earnings for the quarter were $0.23 per share, compared to a loss of $0.48 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude one-time items.

Second-quarter revenues surged 156% to $1.28 billion from $498 million last year. Analysts had a consensus revenue estimate of $1.21 billion for the quarter.

E-commerce growth surged 42% from last year, while revenues through all digital channels grew 75%, driven by strong performance across all regions.

"We generated strong momentum in the second quarter with the accelerated recovery of our revenues and delivered growth across all regions and channels. This was underscored by the strength of our brands and our ability to capitalize on evolving denim trends and a continued shift to casualization" said CEO Chip Bergh.

Looking forward, the company raised its fiscal-year revenues and earnings outlook. Third-quarter revenues are now expected above fiscal 2019 levels.

The company now expects adjusted earnings of $1.29 to $1.33 per share. Analysts currently estimate earnings of $1.15 per share for the quarter.

LEVI closed Thursday's regular trading at $28.00, down $0.04 or 0.14%, on the Nasdaq. The stock, however, gained $0.81 or 2.89%, in the after-hours trade.