By Dhirendra Tripathi
Investing.com – Levi Strauss stock (NYSE:LEVI) soared 15% Thursday as a stronger-than-expected sales outlook and price hikes that boosted results impressed traders.
The company was able to weather the tough market conditions and improved its dividend when most peers have struggled. The apparel-maker expects 2022 revenue to come in between $6.4 billion and $6.5 billion, nearly 13% higher at the top end. Adjusted profit per share is seen in the range of $1.50 to $1.56.
The optimistic outlook comes even as the company expects supply-chain disruptions to continue for the rest of the year.
According to Bloomberg, Levi tried to counter the inflationary headwinds by raising prices by about 10% in the fourth quarter that ended Nov. 28.
Price hikes helped fourth-quarter adjusted gross margin expand 3.5 percentage points to 58.1%, excluding Covid-19 and acquisition-related charges. The increased profit margin also reflects a higher proportion of sales in the direct-to-consumer, lower promotions, and a higher share of full price sales, according to the company.
Net revenue in the fourth quarter rose 22% to $1.7 billion. Adjusted profit per share more than doubled to 41 cents, helped by lower restructuring charges.