U.S.-based apparel retailer Levi Strauss reported net revenue of $1.6 billion for the first quarter (Q1) of fiscal year 2022 (FY22).
This represents an increase of 22% compared to the corresponding period of the previous year.
Revenues increased by 26% at constant exchange rates, driven by strong growth in all geographic segments.
In the three months to Feb. 27, Levi Strauss’ net income rose 37% to $196 million, while its adjusted net income was $189 million, up 35% from the first. quarter 2021.
The company’s operating profit was $234 million, compared to $177 million in the same quarter a year earlier. This was due to higher net revenue and its partially offset gross margin, among other factors.
The company’s earnings per share (EPS) was $0.46, compared to $0.34 in the same period of FY21.
Gross profit for the quarter fell from $760 million in the first quarter of 2021 to $944 million.
For the full year, Levi Strauss expects net revenue to be between $6.4 billion and $6.5 billion, up 11-13% from the fiscal year. 21.
The company expects EPS between $1.50 and $1.56.
Levi Strauss President and CEO Chip Bergh said, “We started the year with strong consumer demand and solid momentum across all geographies, channels and categories.
“The disciplined execution of our strategic priorities by our teams has enabled us to generate strong revenue and net income growth as we capitalize on structural tailwinds and successfully manage a dynamic operating environment.
“The strength of our brands and our strategy positions us for sustainable growth in the future.”
In January of this year, Levi Strauss announced that its FY21 net revenue increased 29% to $5.8 billion on a reported basis.
The company generated net income of $554 million and adjusted net income of $601 million during the year, the latter an increase from $84 million in fiscal 2020.