U.S. clothing retailer Levi Strauss reported net sales of $ 1.5 billion for the third quarter (Q3) of 2021, an increase of 41% from the previous year.
On a reported basis, the company’s net sales increased by 3% compared to the third quarter of 2019.
Levi Strauss’ direct-to-consumer channel saw a 34% increase in net revenues compared to the third quarter of 2020, while its global wholesale net revenues increased 45% compared to the same period.
The net revenues of all of the company’s digital channels increased by 10% compared to the third quarter of 2020, with digital sales accounting for around 20% of its total revenues for the period.
Levi Strauss’ gross margin was 57.6% and its adjusted gross margin was 57.5%, the latter representing an increase of 390 basis points from the third quarter of 2020.
The company reported net income of $ 193 million, or $ 0.47 per share. This is a significant increase from the $ 27 million, or $ 0.07 per share, recorded a year earlier.
The company’s adjusted net income was $ 197 million and its adjusted diluted earnings per share (EPS) increased to $ 0.48.
Levi Strauss President and CEO Chip Bergh said: “We had a strong quarter with revenue growth from pre-pandemic levels of 2019, despite a tougher-than-expected macro environment. .
“These results reflect the strength of the Levi’s brand, the improved dynamics of our direct-to-consumer business and the scale and agility of our supply chain network where we have held up exceptionally well to macro- headwinds.
“Our future is bright with our iconic Levi’s brand and the acquisition of Beyond Yoga, which establishes our position in the high-growth, high-margin premium sportswear market, as we continue to capitalize on global trends in casualization. ”
For the fourth quarter of 2021, Levi Strauss expects its reported net income to increase by 20-21% compared to the fourth quarter of 2020.
The company anticipates adjusted EPS of between $ 1.43 and $ 1.45.
During the quarter, Levi Strauss acquired the sports and lifestyle clothing brand Beyond Yoga for an undisclosed amount.
Beyond Yoga will operate as a stand-alone division within Levi Strauss once the deal is done.