Levi Strauss & Co. shares rose in the extended session Wednesday after the jeans company topped Wall Street estimates for the quarter and hiked its outlook for the year.
shares rose 3% after hours, following a 5.1% drop to close the regular session at $24.24.
The company reported third-quarter net income of $193.3 million, or 47 cents a share, compared with $27 million, or 7 cents a share, in the year-ago period. Adjusted earnings, which exclude restructuring costs and other items, were 48 cents a share, compared with 8 cents a share in the year-ago period.
Revenue rose to $1.5 billion from $1.06 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast 38 cents a share on revenue of $1.48 billion.
“We delivered a strong quarter with revenue growth versus pre-pandemic 2019 levels, despite a more difficult macro-environment than we expected,” said Chip Bergh, Levi Strauss chief executive, in a statement. “These results reflect the strength of the Levi brand, improving momentum in our direct-to-consumer business and the scale and agility of our supply chain network where we have executed against macro-headwinds exceptionally well.”
“Looking ahead, we are raising our outlook across revenues and profits,” said Harmit Singh, Levi Strauss chief financial officer, in a statement. “We have taken pricing actions and believe we have pricing power to mitigate inflationary pressures.”
The company expects fourth-quarter adjusted earnings of 38 cents to 40 cents a share, and raised its forecast for the year to between $1.43 to $1.45 a share, up from a previous range of $1.29 to $1.33 a share.
Levi Strauss said it expects fourth-quarter revenue growth of 20% to 21% compared to last year, or between $1.66 billion to $1.68 billion.
Analysts had estimated fourth-quarter earnings of 40 cents a share on revenue of $1.69 billion, and earnings of $1.33 a share for the full year.
Levi Strauss also said its board had authorized a $200 million share-buyback program. Shares are up 64% over the past 12 months, compared with a 30% gain in the S&P 500 index