Levi Strauss Shares Gain In Premarket After Solid Q2 Results, Positive Outlook - Levi Strauss (NYSE:LEVI)

Levi Strauss & Co LEVI reported second-quarter FY21 sales of $1.28 billion, a 156.4% growth year-on-year, beating the consensus estimate of $1.2 billion.
Revenue from the Americas increases 3%, compared to the pre-pandemic levels, driven by growth in the U.S. market.
Sales through all digital channels grew 75% Y/Y, led by solid performance across all regions.
Gross profit of $750 million amounted to an adjusted gross margin of 58.2%, an increase of 670 basis points Y/Y.
Adjusted selling, general, and administrative (SG&A) expenses rose 35.9% to $628 million.
Restructuring charges of $16 million were recorded in the quarter, primarily related to employee-related severance benefits.
Levi posted an 8.3% operating margin with a $107 million operating income.
Adjusted EPS of $0.23 beat the consensus of $0.09.
Cash and equivalents totaled $1.2 billion as of May 30, 2021.
Outlook: Levi expects a 28% to 29% Y/Y revenue growth in H2 FY21, with adjusted EPS at $0.72-$0.76.
The company now sees adjusted EPS for FY21 at $1.29-$1.33, with the consensus at $1.15.
Third quarter net revenues are now expected above fiscal 2019 levels.
"Revenues in most markets are recovering faster than anticipated, and we are emerging from the pandemic with sustainable and improved structural economics," said CFO Harmit Singh.
Price action: LEVI shares are trading higher by 2.86% at $28.80 in premarket on the last check Friday.