Levi Strauss Q3 diluted EPS from continuing operations jumps 39% to $0.43; net revenues rise to $1.61 billion
LEVI•Levi Strauss reported third-quarter net revenues of $1.6 billion, up 5% organically year over year. Net income from continuing operations rose 39% to $169 million, and diluted EPS from continuing operations reached $0.43.
1. Quarterly results
Gross margin increased to 66.2% from 61.7%, while operating margin widened to 13.8% from 10.8%. Direct-to-consumer net revenues were $727.4 million, and wholesale net revenues rose 6% to $882.3 million.
2. Channel outlook
Management said international and wholesale were strong, while direct-to-consumer results missed internal expectations. The company expects mid-single-digit direct-to-consumer growth in the fourth quarter.
