Wed, Oct 2, 8:07 PM (79 days ago)
Levi Strauss & Co. reported mixed financial results for the quarter ending August 25, 2024. Net revenues were $1,516.8 million, a slight increase of 0.4% year-over-year, while gross profit rose 8.5% to $910.7 million, boosted by improved gross margins of 60.0%. However, operating income declined significantly to $30.3 million from $34.8 million, largely due to $111.4 million in impairment charges related to the Beyond Yoga brand and increased corporate expenses from restructuring efforts under "Project Fuel." Net income, however, saw a notable increase to $20.7 million from $9.6 million, attributed to a lower prior-year pension settlement loss. The company's cash flow position improved significantly, with $601.1 million provided by operating activities, driven by reduced inventory and SG&A spending. Cash and equivalents totaled $577.1 million at period-end. The restructuring initiative, aimed at optimizing operations, incurred $174.7 million in charges year-to-date. Looking ahead, Levi's faces challenges from inflationary pressures, supply chain disruptions, and geopolitical uncertainties, which may impact future performance and profitability.