SAN FRANCISCO--(BUSINESS WIRE)--Levi Strauss & Co. (NYSE: LEVI) today reported financial results for its fourth quarter and fiscal year ended November 27, 2022. “2022 was a strong year for Levi Strauss & Co., as our teams navigated a dynamic macroeconomic environment and emerged stronger. We delivered revenue and EPS growth in line with our outlook on a constant-currency basis, expanded gross margin by 140 basis points, and returned more than $1 billion to shareholders,” said Chip Bergh, president and chief executive officer of Levi Strauss & Co. “While the current macro-economic environment remains uncertain, the strength of our brands and the consistency of our strategy give us confidence that we can deliver further profitable growth in 2023 and beyond.”

Fourth Quarter Fiscal 2022 Financial Results

Net revenues were $1.59 billion, up 0.8 percent on a reported basis and 6 percent on a constant-currency basis1. Direct-to-consumer2 net revenues increased 6 percent on a reported basis and 11 percent on a constant-currency basis. Wholesale2 net revenues were flat on a reported basis and up 4 percent on a constant-currency basis. Global digital net revenues increased 12 percent on a reported basis and 16 percent on a constant-currency basis, representing 20 percent of total company net revenues in the quarter. Gross margin was 57.7 percent of net revenues, an increase of 130 basis points compared to the fourth quarter of fiscal 2021. Adjusted gross margin3 was 58.0 percent of net revenues, an increase of 130 basis points compared to the fourth quarter of fiscal 2021. Operating income was $151 million, compared to $218 million in the fourth quarter of fiscal 2021. Adjusted EBIT3 was $206 million, compared to $277 million in the fourth quarter of fiscal 2021. Net income was $73 million, or $0.18 per diluted share, compared to net income of $153 million, or $0.37 per diluted share, in the fourth quarter of fiscal 2021. Adjusted diluted EPS3 was $0.28, compared to $0.41 in the fourth quarter of fiscal 2021. Adjusted EBIT margin3 was 13.0 percent, compared to 17.7 percent for the fourth quarter of fiscal 2021. Inventory at quarter-end was $1.0 billion, up 20 percent compared to the fourth quarter of fiscal 2021, due to higher in-transit inventory, as well as strategic buys to mitigate ongoing supply chain disruptions, which we expect to normalize in the first half of fiscal 2023.

Fiscal Year 2022 Financial Results

Net revenues were $6.21 billion, up 7 percent on a reported basis and 10 percent on a constant-currency basis1. Direct-to-consumer2 net revenues increased 11 percent on a reported basis and 14 percent on a constant-currency basis. Wholesale2 net revenues were up 4 percent on a reported basis and 7 percent on a constant-currency basis. Global digital net revenues increased 8 percent on a reported basis and 11 percent on a constant-currency basis, representing 17 percent of total company net revenues for the year. Gross margin was 57.6 percent of net revenues, an increase of 140 basis points compared to fiscal 2021. Adjusted gross margin3 was 57.9 percent of net revenues, an increase of 150 basis points compared to fiscal 2021. Operating income was $829 million, compared to $766 million in fiscal 2021. Adjusted EBIT3 was $946 million, compared to $835 million in fiscal 2021. Net income was $584 million, or $1.44 per diluted share, compared to net income of $653 million, or $1.59 per diluted share, in fiscal 2021. Adjusted diluted EPS3 was $1.70, compared to $1.53 in fiscal 2021. Adjusted EBIT margin3 was 15.2 percent, compared to 14.2 percent for fiscal 2021.

Emerging Market Growth vs. Greater China Revenue

"Fun Fact: Levi's jeans were declared the official uniform of peace protesters at the 1969 Woodstock music festival, solidifying their status as a symbol of counterculture and rebellion."