Levi Strauss Q4 Adj. EPS Tops View; Sees FY24 Earnings Below Market; To Cut Jobs, Sees Charges In Q1

(RTTNews) - Denim maker Levi Strauss & Co. (LEVI) reported weak earnings and higher revenues in its fourth quarter. Adjusted earnings topped market estimates, while top line missed view. Further, the company projects higher earnings for fiscal 2024, but below market view.

Further, the company announced a multi-year global productivity initiative, Project FUEL, focused on long-term profitable growth. The first phase is expected to occur in the first half of 2024 and is expected to include a 10 percent to 15 percent reduction of global corporate workforce. As a result, the Company expects to record estimated restructuring charges of $110 to $120 million in the first quarter.

In pre-market activity on the NYSE, Levi shares were losing around 2 percent to trade at $15.48.

In fiscal 2024, it is expected this initiative will generate net cost savings of $100 million.

For the fourth quarter, net income was $127 million, down from $151 million last year. Earnings per share were $0.32, compared to $0.38 a year ago.

Adjusted net income was $179 million, compared to $137 million in the prior year. Adjusted earnings per share were $0.44, compared to $0.34 last year.

Net revenues of $1.64 billion increased 3 percent from last year's $1.59 billion. Revenues grew 2 percent on a constant-currency basis.

Analysts on average expected the company to report earnings of $0.43 per share on revenues of $1.66 billion, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Looking ahead for fiscal 2024, the company projects adjusted earnings per share of $1.15 to $1.25, higher than $1.10 per share in fiscal 2023, and reported net revenues growth of 1 percent to 3 percent year-over-year.

The Street estimates earnings of $1.33 per share for fiscal 2024.

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