Levi Strauss & Co (LEVI) Q3 2024 Earnings: EPS of $0.05, Revenue at $1.

Core Insights - Levi Strauss & Co reported net revenues of $1.52 billion for Q3 2024, flat on a reported basis but up 2% on a constant-currency basis compared to Q3 2023, with the Levi's® brand achieving a 5% global revenue increase, the highest in two years [2][6] - The company experienced significant margin expansion, with gross margin rising by 440 basis points year-over-year to 60.0%, driven by lower product costs and a favorable channel and brand mix [3][6] - A strategic review of the Dockers® brand was announced, which may involve a potential sale or other strategic transactions, while the company reaffirmed its adjusted diluted EPS guidance for the full fiscal year 2024 [6][7] Financial Performance - Q3 2024 net revenues were $1.52 billion, compared to $1.51 billion in Q3 2023, showing no percentage change [4] - Gross profit increased by 8.5% year-over-year to $910.7 million, while net income rose by 110% to $21 million [4] - Adjusted diluted EPS increased by 18% year-over-year to $0.33, although it was slightly below the analyst estimate of $0.34 [3][4] Balance Sheet and Cash Flow - As of August 25, 2024, the company had cash and cash equivalents of $577 million and total liquidity of approximately $1.3 billion [5] - Total inventories decreased by 7% on a dollar basis, and the company returned approximately $69 million to shareholders in Q3, including $52 million in dividends and $18 million in share repurchases [5] Strategic Outlook - The company is focusing on strengthening the Levi's® brand, which saw a significant acceleration in growth, and is committed to sustaining margin improvements and revenue growth in the upcoming quarters [6][7] - The strategic review of the Dockers® brand indicates potential challenges in that segment, which investors should monitor closely [7]