Levi Strauss & Co reported quarterly results

full year earnings: “As good as this past year has been, I am confident the future will be even better." Financial Highlights for the Fourth-Quarter • Reported net revenues of $1.7 billion up 22% versus Q4 2020 and up 7% versus Q4 2019 ◦ Direct-to-Consumer ("DTC") net revenues up 25% versus Q4 2020 and up 20% versus Q4 2019 ▪ Company-operated store net revenues up 28% versus Q4 2020 and up 14% versus Q4 2019 ▪ DTC e-commerce net revenues up 22% versus Q4 2020 and 69% versus Q4 2019 ◦ Global Wholesale net revenues up 20% versus Q4 2020 and up 1% versus Q4 2019 ◦ The approximate 3% net revenues benefit from Black Friday and the acquisition of Beyond Yoga was offset by the impact of supply chain constraints, which was approximately $50 million • Gross margin was 57.8%; Adjusted gross margin was 58.1%, up 350 basis points from Q4 2020 and 380 basis points from Q4 2019 • Operating margin was 11.1% ; Adjusted EBIT margin expanded to 12.0% , up from 8.2% in Q4 2020 and 9.3% in Q4 2019 • Net income was $153 million; Adjusted net income was $170 million, up from $81 million in Q4 2020 and $108 million in Q4 2019 • Diluted EPS was $0.37; Adjusted diluted EPS was $0.41, up 105% from $0.20 in Q4 2020 and 58% from $0.26 in Q4 2019 Financial Highlights for the Full Year • Reported net revenues of $5.8 billion up 29% versus FY 2020 and flat to FY 2019 • Gross margin was 58.1%; Adjusted gross margin was 57.9% , up 350 basis points from FY 2020 and 410 basis points from FY 2019 • Operating margin was 11.9%; Adjusted EBIT margin expanded to 12.4% , up from 4.1% in FY 2020 and 10.6% in FY 2019 • Net income was $554 million; Adjusted net income was $601 million , up from $84 million in FY 2020 and $456 million in FY 2019 • Diluted EPS was $1.35; Adjusted diluted EPS was $1.47 , up 600% from $0.21 in FY 2020 and 31% from $1.12 in FY 2019 • Adjusted free cash flow was $230 million , up $88 million versus FY 2020 and up $114 million versus FY 2019 • The company repurchased 3.4 million shares for $88.4 million • A total of $104.4 million in dividends were paid during the year "We achieved strong results, including multi-decade record revenues and profitability, delivering an adjusted EBIT margin for the full year of 12.4% despite heightened supply chain challenges and product costs," said Harmit Singh, chief financial officer of Levi Strauss & Co.” Previous: “As good as this past year has been, I am confident the future will be even better." Financial Highlights for the Fourth-Quarter • Reported net revenues of $1.7 billion up 22% versus Q4 2020 and up 7% versus Q4 2019 ◦ Direct-to-Consumer ("DTC") net revenues up 25% versus Q4 2020 and up 20% versus Q4 2019 ▪ Company-operated store net revenues up 28% versus Q4 2020 and up 14% versus Q4 2019 ▪ DTC e-commerce net revenues up 22% versus Q4 2020 and 69% versus Q4 2019 ◦ Global Wholesale net revenues up 20% versus Q4 2020 and up 1% versus Q4 2019 ◦ The approximate 3% net revenues benefit from Black Friday and the acquisition of Beyond Yoga was offset by the impact of supply chain constraints, which was approximately $50 million • Gross margin was 57.8%; Adjusted gross margin was 58.1%, up 350 basis points from Q4 2020 and 380 basis points from Q4 2019 • Operating margin was 11.1% ; Adjusted EBIT margin expanded to 12.0% , up from 8.2% in Q4 2020 and 9.3% in Q4 2019 • Net income was $153 million; Adjusted net income was $170 million, up from $81 million in Q4 2020 and $108 million in Q4 2019 • Diluted EPS was $0.37; Adjusted diluted EPS was $0.41, up 105% from $0.20 in Q4 2020 and 58% from $0.26 in Q4 2019 Financial Highlights for the Full Year • Reported net revenues of $5.8 billion up 29% versus FY 2020 and flat to FY 2019 • Gross margin was 58.1%; Adjusted gross margin was 57.9% , up 350 basis points from FY 2020 and 410 basis points from FY 2019 • Operating margin was 11.9%; Adjusted EBIT margin expanded to 12.4% , up from 4.1% in FY 2020 and 10.6% in FY 2019 • Net income was $554 million; Adjusted net income was $601 million , up from $84 million in FY 2020 and $456 million in FY 2019 • Diluted EPS was $1.35; Adjusted diluted EPS was $1.47 , up 600% from $0.21 in FY 2020 and 31% from $1.12 in FY 2019 • Adjusted free cash flow was $230 million , up $88 million versus FY 2020 and up $114 million versus FY 2019 • The company repurchased 3.4 million shares for $88.4 million • A total of $104.4 million in dividends were paid during the year "We achieved strong results, including multi-decade record revenues and profitability, delivering an adjusted EBIT margin for the full year of 12.4% despite heightened supply chain challenges and product costs," said Harmit Singh, chief financial officer of Levi Strauss & Co.”