Levi Strauss & Co. - LEVI STOCK NEWS

Levi Strauss & Co. (NYSE: LEVI) has received an upgrade from Fitch Ratings, raising its Long-Term Issuer Default Rating (IDR) to 'BBB-' from 'BB+' with a Stable Rating Outlook. The upgrade reflects improvements in LEVI's EBITDAR leverage following Fitch's lease criteria update.

The company's strong cash flow generation and strategic focus on direct-to-consumer channels and portfolio diversification have contributed to this positive outlook. Key financial metrics include $690 million in cash and $803 million in revolver availability as of December 1, 2024.

The company remains focused on becoming a $10B company with 15% EBIT margins through strategic growth initiatives, including product innovation, direct-to-consumer expansion, and portfolio diversification.

Levi Strauss & Co. (NYSE: LEVI) announced strategic leadership changes to accelerate its transformation into a best-in-class omnichannel retailer. Key organizational changes include:

Karyn Hillman expands role to Chief Product Officer including Merchandising and Design, Jason Gowans becomes Chief Digital and Technology Officer overseeing digital and enterprise technology, Harmit Singh as Chief Financial and Growth Officer adds oversight of Transformation program, and Gianluca Flore as Chief Commercial Officer now oversees Licensing and Planning.

Bernard Bedon joins as Chief Human Resources Officer from Nike, while Liz O'Neill, Chief Operations Officer, announces retirement. The COO position will be replaced with a new Chief Supply Chain Officer role. These changes aim to streamline decision-making, drive operational excellence, and align with strategic priorities for sustainable, profitable growth.

Levi Strauss & Co. (LEVI) reported strong Q4 2024 results with net revenues reaching $1.8 billion, up 12% on a reported basis and 8% organically. The company achieved record gross margin of 61.3%, a 350 basis point increase from Q4 2023.

Direct-to-Consumer (DTC) net revenues grew 19% reported (14% organic), while wholesale revenues increased 7% reported (3% organic). The company reported diluted EPS of $0.46 and adjusted diluted EPS of $0.50, up 14% from previous year.

For fiscal year 2024, LEVI achieved net revenues of $6.4 billion, up 3% both reported and organic, with adjusted EBIT margin of 10.2%. The company returned $289 million to shareholders through dividends and share repurchases.

For fiscal 2025, LEVI forecasts organic net revenue growth of 3.5% to 4.5%, with adjusted EBIT margin expanding to 10.9-11.1%, and adjusted diluted EPS of $1.20-$1.25.

Levi Strauss & Co. (NYSE: LEVI) has announced the appointment of Artemis Patrick to its board of directors, effective February 1, 2025. Patrick, currently serving as president and CEO of Sephora North America, will also join the board's Audit and Nominating, Governance and Corporate Citizenship Committees from March 1, 2025.

Patrick brings extensive experience in merchandising, brand building, partnerships, and e-commerce. At Sephora North America, she oversees strategy, vision, and financial performance for U.S. and Canadian operations. During her 19-year tenure at Sephora, she has held various leadership positions, including global merchandising officer and chief merchandising officer for Sephora Americas.

Levi Strauss & Co. (NYSE: LEVI) has announced its upcoming fourth quarter and fiscal year 2024 earnings conference call, scheduled for Wednesday, January 29, 2025, at 2 p.m. Pacific Time / 5 p.m. Eastern Time. The call will be led by Michelle Gass, president and chief executive officer, and Harmit Singh, chief financial and growth officer.

Interested participants can pre-register for the conference call through a provided link to receive dial-in details. A live webcast will be available, and a replay will be accessible on the company's investor relations website approximately two hours after the event, remaining archived for one quarter.

Levi Strauss & Co has appointed Dario Aguilar as Managing Director for Latin America, effective December 2. Reporting to EVP and Chief Commercial Officer Gianluca Flore, Aguilar will oversee regional commercial operations and drive sustainable growth. Aguilar brings over 25 years of commercial experience, most recently serving as CEO of Sephora Mexico, where he tripled top and bottom-line growth. Previously, he led C&A Mexico as CEO and held leadership roles at Adidas and Nike across Latin America and Europe. His appointment aims to strengthen Levi's position as a brand-led, DTC-first apparel leader in the region.

Levi Strauss & Co. (NYSE: LEVI) has appointed Daniel Geballe to its board of directors, effective April 26, 2025. Geballe, currently a managing director at SJF Ventures, will replace David Friedman, who is set to retire upon reaching the mandatory retirement age. CEO Michelle Gass praised Geballe's extensive experience and commitment to social and environmental responsibility, highlighting his potential contribution to the company's long-term growth strategy. Geballe's background includes roles at The for Enterprise Development and Fisher Investments, as well as serving on the Levi Strauss Foundation board. He expressed enthusiasm about joining LS&Co.'s board and contributing to its next chapter of sustained, profitable growth.

Levi Strauss & Co. (NYSE: LEVI) reported flat net revenues of $1.5 billion for Q3 2024, up 2% on a constant-currency basis. The Levi's® brand grew 5% globally, its highest growth in two years. Gross margin increased 440 basis points to 60.0%, while adjusted diluted EPS rose 18% to $0.33.

Key highlights include:

• DTC net revenues up 10%, with e-commerce growing 16%
• Europe net revenues increased 6%
• Asia net revenues up 4% on a constant-currency basis
• Operating margin at 2.0%, adjusted EBIT margin up 250 basis points to 11.6%

The company updated its FY2024 guidance, expecting 1-2% revenue growth and reaffirming adjusted diluted EPS guidance of $1.17 to $1.27. Levi's also announced a strategic review of the Dockers® brand, potentially including a sale.

Levi Strauss & Co. (NYSE: LEVI) has announced its upcoming third quarter 2024 earnings conference call, scheduled for Wednesday, October 2, 2024, at 2 p.m. Pacific Time / 5 p.m. Eastern Time. The call will be hosted by Michelle Gass, president and CEO, and Harmit Singh, CFO and growth officer. Investors and analysts can pre-register for the call to receive dial-in details. A live webcast will also be available, with a replay accessible on the company's investor relations website for one quarter following the event. The financial results for the quarter ended August 25, 2024, will be discussed during the call, with the related press release to be published on the same day.