Levi Strauss has beaten analysts’ fourth-quarter revenue estimates thanks to strong global demand for denim.
The US giant reported net revenue of 1.7 billion dollars in the quarter ended November 28, representing growth of 22 percent compared to the same quarter a year ago, and 7 percent compared to two years ago, prior to the pandemic.
Analysts had expected revenue of 1.68 billion dollars, according to Refinitiv.
The company said it benefited in the quarter from price increases, lower promotions, and a higher share of full-price sales.
The strong revenue growth helped Levi Strauss widen its net income to 153 million dollars in the quarter, up from 57 million dollars a year earlier.
For the full year, the brand reported net revenue of 5.8 billion dollars, up 29 percent compared to 2020 and flat on 2019.
Its annual net income came in at 554 million dollars, swinging from a loss of 127 million dollars a year earlier.
Upbeat on 2022
“We had a strong finish to 2021 and I can confidently say that we are a stronger company than ever before,” president and CEO Chip Bergh said in a statement.
He said the results “reflect robust financial performance, marked by sequential improvement through the year, despite navigating ongoing business disruption from the pandemic”.
For the 2022 fiscal year, the company expects revenue of between 6.4 billion dollars and 6.5 billion dollars, representing year-on-year growth of between 11 percent to 13 percent.
Analysts were expecting revenue of 6.37 billion dollars.
Bergh said: “We are well-positioned for long-term, sustainable growth - our strong brand equity is driving pricing power, we’re boldly diversifying our business and continuing to expand our high margin DTC business.
“As good as this past year has been, I am confident the future will be even better.”