Levi Strauss & Co. (NYSE: LEVI) reported its second quarter financial results after the market close on Tuesday. The jean-maker reported better-than-expected revenue, but missed earnings estimates, causing shares to plummet by 10% at the opening bell on Wednesday.
Levi’s quarterly report marks its first financial results since launching its initial public offering back in March earlier this year.
For the second quarter, Levi reported earnings of USD 0.07 per share on revenue of USD 1.31 Billion. Bloomberg analysts expected earnings of USD 0.12 per share on revenue of USD 1.29 Billion.
Levi’s revenue rose by 5% year-over-year, largely due to stronger sales in its Asia and Europe markets. Despite Levi’s revenue growth, the Company reported that its net income fell by 63% from USD 77 Million to USD 29 Million year-over-year.
Levi’s America market still accounts for the majority of the Company’s revenue. For the quarter, the American segment reported revenue of USD 693 Million, increasing 3% year-over-year. Meanwhile, Levi’s Europe market rose by 9% to USD 398 Million, while Asia jumped by 6% to USD 222 Million.
The revenue growth across Levi’s markets was primarily driven by higher revenue across both the Company’s wholesale and direct-to-consumer channels.
“Our second quarter and first half results reflect the continued strength of our diversified business model as we delivered broad-based growth across all brands, regions and key product categories despite a challenging retail and macroeconomic environment,” said Chip Bergh, President and Chief Executive Officer of Levi Strauss & Co.
Moving forward, Levi’s said it will continue to focus on jeans to other apparel categories such as footwear and outerwear, according to its filings with the SEC back in February.
“For both periods, the Levi’s brand grew in all three regions across men’s, women’s, tops and bottoms and maintained its position at the center of culture through iconic products and consumer experiences.” concluded Bergh.
As for the rest of the fiscal year, Levi’s expects to reported net revenue growth at the high end of the mid-single digit range and adjusted EBIT slightly up in the range of 10 basis points.