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Levi Strauss & (LEVI) - 2024 Q4 - Annual Results
LEVILevi Strauss & (LEVI)2025-01-29 21:07

Financial Performance - Reported net revenues for Q4 2024 were 1.84billion,anincreaseof121.84 billion, an increase of 12% year-over-year, with organic net revenues up 8%[3] - For fiscal year 2024, reported net revenues were 6.4 billion, up 3% from FY 2023, with adjusted net income of 503million,a14503 million, a 14% increase[9] - Net revenues for the three months ended December 1, 2024, were 1,839.7 million, an increase of 12.0% compared to 1,642.3millionforthesameperiodin2023[30]−TotalnetrevenuesforthetwelvemonthsendedDecember1,2024,were1,642.3 million for the same period in 2023[30] - Total net revenues for the twelve months ended December 1, 2024, were 6,355.3 million, a 2.9% increase from 6,179.0millioninthepreviousyear[69]−TotalnetrevenuesforLevi′sBrandsincreasedby12.26,179.0 million in the previous year[69] - Total net revenues for Levi's Brands increased by 12.2% to 1,716.1 million for the three months ended December 1, 2024, compared to 1,529.3millionforthesameperiodin2023[73]EarningsandMargins−DilutedEPSforQ42024was1,529.3 million for the same period in 2023[73] Earnings and Margins - Diluted EPS for Q4 2024 was 0.46, up from 0.32inQ42023,whileadjusteddilutedEPSincreasedto0.32 in Q4 2023, while adjusted diluted EPS increased to 0.50 from 0.44[8]−AdjustednetincomeforthethreemonthsendedDecember1,2024,was0.44[8] - Adjusted net income for the three months ended December 1, 2024, was 202.2 million, compared to 178.6millionintheprioryear,reflectinga13.5178.6 million in the prior year, reflecting a 13.5% increase[45] - Adjusted EBIT for the three months ended December 1, 2024, was 246.8 million, a 23.3% increase from 200.1millioninthesameperiodin2023[75]−ThenetincomemarginforthethreemonthsendedDecember1,2024,was9.9200.1 million in the same period in 2023[75] - The net income margin for the three months ended December 1, 2024, was 9.9%, an increase from 7.7% in the same period of 2023[45] - Adjusted EBIT for the twelve months ended December 1, 2024, was 649.9 million, up from 554.8millionin2023,reflectinga17.1554.8 million in 2023, reflecting a 17.1% growth[39] Revenue Growth by Region - In the Americas, net revenues increased 12% on a reported basis and 9% on an organic basis, with the U.S. growing 6% organically[3] - Asia net revenues increased 9% on both a reported and organic basis, reflecting growth across channels[3] - Europe reported a 14.5% increase in revenues to 434.1 million for the three months ended December 1, 2024, compared to 379.0millioninthesameperiodlastyear[69]−Direct−to−Consumer(DTC)organicnetrevenuesroseby13.7379.0 million in the same period last year[69] - Direct-to-Consumer (DTC) organic net revenues rose by 13.7% to 789.2 million for the three months ended December 1, 2024, from 694.0millioninthepreviousyear[71]CostandExpenses−Grossmarginrose350basispointsto61.3694.0 million in the previous year[71] Cost and Expenses - Gross margin rose 350 basis points to 61.3%, a company record, driven by lower product costs and higher full-price sales[8] - Selling, general and administrative expenses for the twelve months ended December 1, 2024, were 3,246.2 million, up from 3,051.9millionin2023,reflectinga6.43,051.9 million in 2023, reflecting a 6.4% increase[30] - The company reported a restructuring charge of 14.0 million for the three months ended December 1, 2024, compared to 1.0millionforthesameperiodin2023[30]−Thecompanyincurred1.0 million for the same period in 2023[30] - The company incurred 188.7 million in restructuring charges related to Project Fuel for the year ended December 1, 2024[56] Cash Flow and Assets - Net cash provided by operating activities increased significantly to 898.4million,comparedto898.4 million, compared to 435.5 million in the previous year, marking an increase of approximately 106.5%[33] - Cash and cash equivalents increased to 690.0millionasofDecember1,2024,from690.0 million as of December 1, 2024, from 398.8 million as of November 26, 2023[27] - Total assets increased to 6,375.5millionasofDecember1,2024,from6,375.5 million as of December 1, 2024, from 6,053.6 million as of November 26, 2023[27] - The company reported a significant net change in operating assets and liabilities of 350.5millionfortheyearendedDecember1,2024,comparedtoanegativechangeof350.5 million for the year ended December 1, 2024, compared to a negative change of 108.5 million in the previous year[33] Impairments and Charges - The company incurred 116.9millioningoodwillandotherintangibleassetimpairmentfortheyearendedDecember1,2024,comparedto116.9 million in goodwill and other intangible asset impairment for the year ended December 1, 2024, compared to 90.2 million in the prior year[33] - Goodwill and other intangible asset impairment charges for the year ended December 1, 2024, amounted to 117.9million,withsignificantchargesrelatedtoBeyondYoga®[43]−Property,plant,equipment,andright−of−useassetimpairmentchargesfortheyearendedDecember1,2024,included117.9 million, with significant charges related to Beyond Yoga®[43] - Property, plant, equipment, and right-of-use asset impairment charges for the year ended December 1, 2024, included 11.1 million related to discontinued technology projects[41] Shareholder Returns - The company returned 289milliontoshareholdersinFY2024,a45289 million to shareholders in FY 2024, a 45% increase over the prior year, including dividends and share repurchases[11] - For the year ended December 1, 2024, adjusted diluted earnings per share was 1.25, up from 1.10in2023,representinga13.61.10 in 2023, representing a 13.6% increase[51] Strategic Initiatives - The company is evaluating strategic alternatives for the Dockers business, including potential sale or other transactions[82] - The divestiture of the Denizen brand resulted in a revenue decrease of 33.2 million for the year ended December 1, 2024[80] - The footwear divestiture contributed a revenue decrease of $63.2 million for the year ended December 1, 2024[80]