Shares of Levi Strauss & Co. rose nearly 3% in the extended session Wednesday after the retailer reported quarterly earnings and sales that topped Wall Street views, saying it started the year enjoying “strong consumer demand and solid momentum.”
Levi Strauss LEVI, -1.52% said it earned $196 million, or 48 cents a share, in the first quarter, compared with $143 million, or 35 cents a share, in the year-ago period.
Adjusted for one-time items, Levi Strauss earned 46 cents a share.
Sales rose 22% to $1.6 billion, the company said.
The sales bump included a 26% increase in the company’s Americas division thanks in part to “strength” in company-operated stores as consumers returned to in-person shopping, it said.
“The ongoing consumer demand across our portfolio of brands and our proven ability to deliver profitable growth give us the confidence to reaffirm our full-year outlook despite the incremental headwinds from ongoing macro challenges,” Chief Financial Officer Harmit Singh said in a statement.
Levi Strauss said it continues to expect 2022 sales growth between 11% and 13%, or between $6.4 billion and $6.5 billion, and an adjusted EPS between $1.50 and $1.56 for the year.
The company also said it is reviewing for impairment its assets in Russia, which at the end of the first quarter included about $30 million in right-of-use assets, $4 million related to properties and equipment, and other assets.
Levi Strauss in March announced the temporary suspension of most of its commercial operations in Russia following the invasion of Ukraine.
The stock ended the regular trading day down 1.5%.