Levi Strauss & Co. Receives Ratings Upgrade from Fitch Ratings
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) ha ricevuto un upgrade da Fitch Ratings, elevando il suo Long-Term Issuer Default Rating (IDR) a 'BBB-' da 'BB+' con un Outlook di Rating Stabile. L'upgrade riflette i miglioramenti nel leverage EBITDAR di LEVI a seguito dell'aggiornamento dei criteri di leasing di Fitch.
La forte generazione di flussi di cassa dell'azienda e il focus strategico sui canali diretti al consumatore e sulla diversificazione del portafoglio hanno contribuito a questa prospettiva positiva. I principali indicatori finanziari includono 690 milioni di dollari in contante e 803 milioni di dollari di disponibilità in revolver al 1 dicembre 2024.
L'azienda rimane concentrata nel diventare una società da 10 miliardi di dollari con margini EBIT del 15% attraverso iniziative di crescita strategica, inclusa l'innovazione di prodotto, l'espansione diretta al consumatore e la diversificazione del portafoglio.
Levi Strauss & Co. (NYSE: LEVI) ha recibido una mejora por parte de Fitch Ratings, elevando su Long-Term Issuer Default Rating (IDR) a 'BBB-' desde 'BB+' con una Perspectiva de Calificación Estable. La mejora refleja las mejoras en el apalancamiento EBITDAR de LEVI tras la actualización de los criterios de arrendamiento de Fitch.
La sólida generación de flujo de efectivo de la empresa y su enfoque estratégico en los canales directos al consumidor y la diversificación de la cartera han contribuido a esta perspectiva positiva. Los principales indicadores financieros incluyen 690 millones de dólares en efectivo y 803 millones de dólares en disponibilidad de revolver a partir del 1 de diciembre de 2024.
La empresa sigue enfocada en convertirse en una compañía de 10 mil millones de dólares con márgenes EBIT del 15% a través de iniciativas de crecimiento estratégico, incluyendo la innovación de productos, la expansión directa al consumidor y la diversificación de la cartera.
레비 스트라우스 & 코. (NYSE: LEVI)는 Fitch Ratings로부터 업그레이드를 받아 Long-Term Issuer Default Rating (IDR)을 'BB+'에서 'BBB-'로 상향 조정하였으며, 안정적인 등급 전망을 유지하고 있습니다. 이번 업그레이드는 Fitch의 임대 기준 업데이트에 따른 LEVI의 EBITDAR 레버리지 개선을 반영합니다.
회사의 강력한 현금 흐름 생성과 소비자 직접 판매 채널 및 포트폴리오 다각화에 대한 전략적 집중이 이러한 긍정적인 전망에 기여했습니다. 주요 재무 지표에는 2024년 12월 1일 기준으로 6억 9천만 달러의 현금과 8억 3천만 달러의 리볼버 가용성이 포함됩니다.
회사는 제품 혁신, 소비자 직접 판매 확장 및 포트폴리오 다각화를 포함한 전략적 성장 이니셔티브를 통해 150억 달러 기업으로서 15% EBIT 마진을 목표로 하고 있습니다.
Levi Strauss & Co. (NYSE: LEVI) a reçu une mise à niveau de Fitch Ratings, portant sa note de défaut d'émetteur à long terme (IDR) de 'BB+' à 'BBB-' avec une perspective de notation stable. Cette mise à niveau reflète les améliorations de l'effet de levier EBITDAR de LEVI suite à la mise à jour des critères de location de Fitch.
La forte génération de flux de trésorerie de l'entreprise et son orientation stratégique vers les canaux de vente directe aux consommateurs et la diversification de son portefeuille ont contribué à cette perspective positive. Les principaux indicateurs financiers incluent 690 millions de dollars en liquidités et 803 millions de dollars de disponibilité de crédit renouvelable au 1er décembre 2024.
L'entreprise reste concentrée sur l'objectif de devenir une entreprise de 10 milliards de dollars avec des marges EBIT de 15% grâce à des initiatives de croissance stratégiques, y compris l'innovation produit, l'expansion directe aux consommateurs et la diversification du portefeuille.
Levi Strauss & Co. (NYSE: LEVI) hat von Fitch Ratings ein Upgrade erhalten, das die Long-Term Issuer Default Rating (IDR) von 'BB+' auf 'BBB-' mit einem stabilen Ratingausblick anhebt. Das Upgrade spiegelt die Verbesserungen bei LEVIs EBITDAR-Verschuldung nach der Aktualisierung der Mietkriterien von Fitch wider.
Die starke Generierung von Cashflows und der strategische Fokus auf Direktvertriebskanäle und Portfolio-Diversifizierung haben zu diesem positiven Ausblick beigetragen. Wichtige Finanzkennzahlen umfassen 690 Millionen Dollar in bar und 803 Millionen Dollar an revolvierender Kreditlinie zum 1. Dezember 2024.
Das Unternehmen bleibt darauf fokussiert, ein 10-Milliarden-Dollar-Unternehmen mit 15% EBIT-Margen durch strategische Wachstumsinitiativen, einschließlich Produktinnovation, Direktvertriebsexpansion und Portfolio-Diversifizierung, zu werden.
- Upgrade to investment grade rating (BBB-) from Fitch
- Strong liquidity position with $690M cash and $803M revolver availability
- EBITDAR leverage trending below 2.0x
- Strong cash flow generation
- None.
Insights
The upgrade to investment grade status (BBB-) represents a pivotal moment for Levi Strauss, marking its transition from a high-yield to an investment-grade issuer. This advancement carries significant financial advantages: reduced borrowing costs, broader access to debt markets, and enhanced financial flexibility for strategic initiatives.
The company's robust liquidity position of
The strategic focus on direct-to-consumer channels is particularly noteworthy as it typically yields
The stable outlook from Fitch suggests confidence in LEVI's ability to maintain these improved metrics while executing its growth strategy. This rating upgrade typically reduces borrowing costs by 50-75 basis points, potentially saving millions in annual interest expenses that can be reinvested in growth initiatives or returned to shareholders.
"The upgrade from Fitch underscores our commitment to financial discipline while driving strategic growth across regions, channels and categories," said Harmit Singh, chief financial and growth officer of Levi Strauss & Co. "We are proud of the progress we've made in strengthening our financial foundation and improving the structural economics of our business, which accelerates our momentum to become a
Fitch's upgrade reflects the improvement in LS&Co.’s EBITDAR leverage following its lease criteria update. In addition, Fitch highlighted Levi's strong cash flow generation and strategic focus on direct-to-consumer channels and portfolio diversification have contributed to this positive outlook.
Key Highlights from Fitch’s Rating Announcement:
- Improved Financial Metrics: Fitch expects LS&Co.’s EBITDAR leverage to trend below 2.0x, supported by strong cash flow and strategic growth initiatives.
- Strategic Growth Initiatives: LS&Co.’s focus on product innovation, direct-to-consumer expansion, and portfolio diversification is expected to drive revenue growth and margin improvement.
-
Strong Liquidity: LS&Co.’s liquidity is bolstered by
$690 million $803 million
Levi Strauss & Co. remains committed to maintaining financial soundness and enhancing its global competitiveness. The company will continue to focus on its core businesses while exploring opportunities for growth in new markets and product categories.
For more information, read here.
About Levi Strauss & Co.
Levi Strauss & Co. (LS&Co.) is one of the world's largest brand-name apparel companies and a global leader in jeanswear. The company designs and markets jeans, casual wear and related accessories for men, women and children under the Levi's®, Levi Strauss Signature™, Denizen®, Dockers® and Beyond Yoga® brands. Its products are sold in approximately 120 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,400 retail stores and shop-in-shops. Levi Strauss & Co.'s reported 2024 net revenues were
Forward-Looking Statements
This press release contains forward-looking statements, including statements related to: progress against strategic priorities; the ongoing restructuring of our operations and our ability to achieve any anticipated cost savings associated with such restructuring; trajectory of direct-to-consumer business; macroeconomic conditions; impacts of foreign exchange; future financial results, including cash flow, net revenues, adjusted EBIT margins, return on invested capital levels, adjusted SG&A, tax rate, and adjusted diluted EPS; capital expenditures; pricing initiatives; inventory growth; new store openings; investments in high growth initiatives; future dividend payments and share repurchases; liquidity; leverage ratios; credit ratings; and efforts to diversify product categories and distribution channels, and the related revenue projections. The company has based these forward-looking statements on its current reasonable assumptions, expectations and projections about future events. Words such as, but not limited to, “believe,” “will,” “may,” “so we can,” “when,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “could” and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and involve a number of risks and uncertainties, some of which are beyond our control, that could cause actual results to differ materially from those suggested by the forward-looking statements. Investors should consider the information contained in the company's filings with the
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Investor Contact:
Aida Orphan
Levi Strauss & Co.
(415) 501-6194
Investor-relations@levi.com
Media Contact:
Elizabeth Owen
Levi Strauss & Co.
(415) 501-7777
Newsmediarequests@levi.com
Source: Levi Strauss & Co.
FAQ
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