In its first quarterly report since going public for the second time in March, Levi Strauss & Co. (LEVI, Financial) disclosed strong first-quarter 2019 earnings after the closing bell on Tuesday, sending shares higher.
The San Francisco-based company, which is famous for its blue jeans, posted earnings of $146.6 million, or 37 cents per share, up from a $19 million loss, or 5 cents per share, a year ago. Revenue grew 7% from the prior-year quarter to $1.44 billion. It was up 11% on a constant currency basis.
In a statement, President and CEO Chip Bergh said Levi Strauss delivered its “sixth consecutive quarter of double-digit, constant currency revenue growth."
"Growth was broad-based across all three regions and all channels, demonstrating that our strategies are working and our investments are paying off," he added.
By segment, sales in the Americas grew 9% on a reported basis and 10% on a constant currency basis to $717 million during the quarter ended Feb. 24. Sales in Europe came in at $465 million, growing 3% on a reported basis and 10% on a constant currency basis. In Asia, revenue of $253 million increased 8% on a reported basis and 14% on a constant currency basis.
For the full year, Levi Strauss guided for mid-single-digit constant currency net revenue growth and a flat to slight increase in its constant currency adjusted earnings before interest and taxes margin.
It also expects to spend approximately $190 million to $200 million in capital expenditures during the year, as well as open around 100 new stores.
The 166-year-old apparel manufacturer first went public in 1971, but has operated privately for the last 34 years. It debuted on the New York Stock Exchange for the second time on March 21, trading at $22.22 a share. CNBC columnist Maggie Fitzgerald reported that after pricing the initial public offering at $17 a share, the company’s stock surged more than 30% on its first day of trading.
With a market cap of $8.88 billion, shares of Levi Strauss were trading around $23.04 on Wednesday. The stock has gained more than 25% since its IPO.
Disclosure: No positions.
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