Reported Net Revenues Grew 12%, Organic1 Net
Revenues up 8%
Net Revenue Growth Driven by Both Global DTC
and Wholesale
Gross Margin Rose 350 Basis Points to 61.3%,
Which Drove Solid Operating Margin Expansion
Diluted EPS of $0.46, and Adj Diluted EPS up
14% to $0.50
Provides Fiscal Year 2025 Guidance
Levi Strauss & Co. (NYSE: LEVI) today announced financial
results for the fourth quarter and fiscal year ended December 1,
2024.
“We delivered a strong fourth quarter and holiday season,
positioning us well as we enter 2025. Our sharpened focus on the
core Levi’s® brand is working, with broad-based strength across
women’s, men’s, DTC and wholesale,” said Michelle Gass,
President and CEO of Levi Strauss & Co. “Our improved
performance is a direct result of the work we have done to
transform the company into a best-in-class omnichannel retailer. We
have a strong plan for the year ahead supported by a robust product
pipeline, the continuation of our marketing campaign with Beyoncé
and continued retail expansion.”
“In Q4, the company delivered accelerating revenue growth, up 8%
on an organic basis, significantly improved DTC profitability,
strong cash flow generation and better-than-expected bottom-line
results,” said Harmit Singh, Chief Financial and Growth Officer
of Levi Strauss & Co. “The strong demand trends, improving
execution and the organization’s focus on the Levi’s® brand gives
me confidence in the guidance we are providing today which calls
for higher organic revenue growth in 2025, in addition to continued
strong margin expansion.”
Financial Highlights for the Fourth-Quarter
- Net Revenues of $1.8 billion increased 12% on a reported
basis and 8% on an organic basis versus Q4 2023.1 Organic net
revenues exclude the impacts of foreign exchange rates,
divested businesses, acquisitions, and any 53rd week from the
change in reported net revenues. Please see reconciliation of
Organic Net Revenues in the Non-GAAP Financial Measures
section below.
- In the Americas, net revenues increased 12% on a
reported basis and 9% on an organic basis. Within the Americas, the
U.S. grew 6% on an organic basis.
- In Europe, net revenues increased 15% on a reported
basis and 6% on an organic basis, reflecting growth across a
majority of markets.
- Asia net revenues increased 9% on a reported and organic
basis, reflecting growth across channels.
- Other Brands net revenues increased 10% on a reported
basis and 5% on an organic basis. Dockers® increased 9% on a
reported basis and 5% on an organic basis. Beyond Yoga® increased
10% on a reported basis and 4% on an organic basis.
- DTC (Direct-to-Consumer) net revenues increased 19% on a
reported basis and 14% on an organic basis. DTC growth on an
organic basis reflected an 11% increase in the U.S., a 17% increase
in Europe and an 8% increase in Asia. Net revenues from e-commerce
grew 19% on a reported and 14% on an organic basis. DTC comprised
45% of total organic net revenues in the fourth quarter.
- Wholesale net revenues increased 7% on a reported basis
and 3% on an organic basis.
Net Revenues
Operating Income (loss)
Three Months Ended
Increase
(Decrease)
As
Reported
Increase
(Decrease)
Organic
Net Revenues
Three Months Ended
Increase
(Decrease)
As
Reported
($ millions)
December 1, 2024
November 26, 2023
December 1, 2024
November 26, 2023
Americas
$
995
$
888
12
%
9
%
$
264
$
212
25
%
Europe
$
434
$
379
15
%
6
%
$
80
$
65
23
%
Asia
$
286
$
262
9
%
9
%
$
24
$
31
(23
)%
Other Brands
$
124
$
113
10
%
5
%
$
(7
)
$
—
*
* Not meaningful
- Operating margin was 11.5% compared to 9.2% in Q4 2023.
Adjusted EBIT margin increased 120 basis points to 13.4%
from 12.2% last year due to gross margin expansion.
- Gross margin increased 350 basis points to 61.3%, a
company record, from 57.8% in Q4 2023 primarily driven by lower
product costs, including savings from Project Fuel initiatives,
favorable channel mix, and higher full price sales.
- Selling, general and administrative (SG&A) expenses
were $901 million compared to $798 million in Q4 2023. Adjusted
SG&A was up 17.4% to $880 million compared to $750 million
last year. As a percentage of sales, adjusted SG&A was 47.8%
compared to 45.6% last year. The increase in SG&A versus prior
year is primarily attributable to an increased investment in
A&P, higher distribution expenses as a result of our DC
transitions, and higher compensation incentives given performance
in Q4 offset by leverage on selling expenses.
- Restructuring charges were $14 million related to
Project Fuel.
- Interest and other expenses, net, which include foreign
exchange losses, were $12 million in the aggregate compared to $15
million in Q4 2023.
- The effective income tax rate was 8.6%, compared to 7.2%
in Q4 2023.
- Net income was $183 million compared to $127 million in
Q4 2023. Adjusted net income was $202 million compared to
$179 million in Q4 2023.
- Diluted earnings per share was $0.46 compared to $0.32
in Q4 2023. Adjusted diluted earnings per share was $0.50
compared to $0.44 in Q4 2023.
Fiscal-year 2024 results are included in the company’s
Annual Report on Form 10-K for the year ended December 1, 2024.
Financial Highlights for the Full Year
- Reported net revenues of $6.4 billion were up 3% to FY 2023,
and up 3% on an organic basis
- Gross margin was 60.0%; 310 basis points above FY
2023
- Operating margin was 4.2%; Adjusted EBIT margin was
10.2%, compared to 9.0% in FY 2023
- Net income was $211 million; Adjusted net income was
$503 million, up from $441 million in FY 2023
- Diluted EPS was $0.52; Adjusted diluted EPS was $1.25,
up from $1.10 in FY 2023
- Record Adjusted Free Cash Flow generation of $671
million
- The Company returned $289 million in capital to
shareholders, up 45% to prior year
Highlights include:
Three Months Ended
Increase
(Decrease)
As
Reported
Increase
(Decrease)
Organic
Net Revenues
Year Ended
Increase
(Decrease)
As
Reported
Increase
(Decrease)
Organic
Net Revenues
($ millions)
December 1, 2024
November 26, 2023
December 1, 2024
November 26, 2023
Net revenues
$
1,840
$
1,642
12
%
8
%
$
6,355
$
6,179
3
%
3
%
Three Months Ended
Increase
(Decrease)
As
Reported
Increase
(Decrease)
Constant
Currency
Year Ended
Increase
(Decrease)
As
Reported
Increase
(Decrease)
Constant
Currency
($ millions, except per-share amounts)
December 1, 2024
November 26, 2023
December 1, 2024
November 26, 2023
Net income
$
183
$
127
44
%
*
$
211
$
250
(16
)%
*
Adjusted net income
$
202
$
179
13
%
14
%
$
503
$
441
14
%
15
%
Adjusted EBIT
$
247
$
200
23
%
25
%
$
650
$
555
17
%
20
%
Diluted earnings per share
$
0.46
$
0.32
14
¢
*
$
0.52
$
0.62
(10)
¢
*
Adjusted diluted earnings per share
$
0.50
$
0.44
6
¢
6
¢
$
1.25
$
1.10
15
¢
17
¢
* Not provided
Additional information regarding Adjusted SG&A, Adjusted
EBIT, Adjusted EBIT margin, Adjusted net income, Adjusted diluted
earnings per share, Adjusted free cash flow as well as amounts
presented on an organic net revenues basis and constant currency
basis, all of which are non-GAAP financial measures, is provided at
the end of this press release.
Balance Sheet Review as of December 1, 2024
- Cash and cash equivalents were $690 million, while total
liquidity was approximately $1.5 billion.
- Total inventories decreased 4% on a dollar basis.
Shareholder Returns
In the fourth quarter, the company returned $51 million to
shareholders in the form of dividends representing a dividend of
$0.13 per share, up 8% from prior year, and share repurchases of
approximately $30 million reflecting 1.6 million shares
retired.
For the full year, the company returned $289 million to
shareholders, a 45% increase over prior year, including:
- Dividends of $199 million, representing annual dividends of
$0.50 per share, up 4% from prior year, and
- Share repurchases of $90 million reflecting 4.8 million shares
retired.
As of December 1, 2024, the company had $590 million remaining
under its current share repurchase authorization, which has no
expiration date.
The company declared a dividend of $0.13 per share totaling
approximately $51 million, payable in cash on February 28, 2025 to
the holders of record of Class A common stock and Class B common
stock at the close of business February 12, 2025.
Fiscal 2025 Guidance
The company is introducing organic net revenue guidance to
better reflect the underlying growth of the company by excluding
year-over-year non-comparable items. Fiscal 2025 organic net
revenue guidance excludes the impacts from foreign exchange,
divested businesses, acquisitions, and the lack of a 53rd week.
The following guidance is provided for the year ending November
30, 2025:
- Reported net revenues: (1%) to (2%)
- Organic net revenues growth: 3.5% to 4.5%
- Adjusted EBIT margin: expanding to 10.9% to 11.1%
- Tax rate: approximately 23%
- Adjusted diluted EPS: $1.20 to $1.25. This includes an
approximate 20c headwind from FX and a higher tax rate.
This outlook also assumes no significant worsening of
macro-economic pressures on the consumer, inflationary pressures,
supply chain disruptions, potential tariffs or currency
fluctuations. A reconciliation of non-GAAP forward looking
information to the corresponding GAAP measures cannot be provided
without unreasonable efforts due to the challenge in quantifying
various items including but not limited to, the effects of foreign
currency fluctuations, taxes, potential tariffs, and any future
restructuring, restructuring-related, severance and other
charges.
Investor Conference Call
To access the conference call, please pre-register on
https://register.vevent.com/register/BI27b55a4c75c84f9a9326293304a3b163
and you will receive confirmation with dial-in details. A live
webcast of the event can be accessed on https://edge.media-server.com/mmc/p/njps4rwo.
A replay of the webcast will be available on http://investors.levistrauss.com starting
approximately two hours after the event and archived on the site
for one quarter.
About Levi Strauss & Co.
Levi Strauss & Co. (LS&Co.) is one of the world's
largest brand-name apparel companies and a global leader in
jeanswear. The company designs and markets jeans, casual wear and
related accessories for men, women and children under the Levi's®,
Levi Strauss Signature™, Denizen®, Dockers® and Beyond Yoga®
brands. Its products are sold in approximately 120 countries
worldwide through a combination of chain retailers, department
stores, online sites, and a global footprint of approximately 3,400
retail stores and shop-in-shops. Levi Strauss & Co.'s reported
2024 net revenues were $6.4 billion. For more information, go to
http://levistrauss.com, and for
financial news and announcements go to http://investors.levistrauss.com.
Forward-Looking Statements
This press release and related conference call contains, in
addition to historical information, forward-looking statements,
including statements related to: progress against strategic
priorities; the ongoing restructuring of our operations and our
ability to achieve any anticipated cost savings associated with
such restructuring; trajectory of direct-to-consumer business;
macroeconomic conditions; impacts of foreign exchange; future
financial results, including net revenues, adjusted EBIT margins,
return on invested capital levels, adjusted SG&A, tax rate, and
adjusted diluted EPS; capital expenditures; pricing initiatives;
inventory growth; new store openings; investments in high growth
initiatives; future dividend payments and share repurchases; and
efforts to diversify product categories and distribution channels,
and the related revenue projections. The company has based these
forward-looking statements on its current reasonable assumptions,
expectations and projections about future events. Words such as,
but not limited to, “believe,” “will,” “may,” “so we can,” “when,”
“anticipate,” “intend,” “estimate,” “expect,” “project,” “could”
and similar expressions are used to identify forward-looking
statements, although not all forward-looking statements contain
these words. These forward-looking statements are necessarily
estimates reflecting the best judgment of our senior management and
involve a number of risks and uncertainties, some of which are
beyond our control, that could cause actual results to differ
materially from those suggested by the forward-looking statements.
Investors should consider the information contained in the
company's filings with the U.S. Securities and Exchange Commission
(SEC), including its Annual Report on Form 10-K for fiscal 2024,
especially in the “Management's Discussion and Analysis of
Financial Condition and Results of Operations”, “Summary of Risk
Factors” and “Risk Factors” sections. Other unknown or
unpredictable factors also could have material adverse effects on
future results, performance or achievements. In light of these
risks, uncertainties, assumptions and factors, the forward-looking
events discussed in this press release and related conference call
may not occur. You are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date
stated or, if no date is stated, as of the date of this press
release and related conference call. The company is not under any
obligation and does not intend to update or revise any of the
forward-looking statements contained in this press release and
related conference call to reflect circumstances existing after the
date of this press release and related conference call or to
reflect the occurrence of future events, even if such circumstances
or future events make it clear that any expected results expressed
or implied by those forward-looking statements will not be
realized.
Non-GAAP Financial Measures
The company reports its financial results in accordance with
generally accepted accounting principles in the United States
(GAAP) and the rules of the SEC. To supplement its financial
statements prepared and presented in accordance with GAAP, the
company uses certain non-GAAP financial measures, such as Adjusted
SG&A, Adjusted SG&A margin, Adjusted EBIT (both reported
and on a constant-currency basis), Adjusted EBIT margin (both
reported and on a constant-currency basis), Adjusted net income
(both reported and on a constant-currency basis), Adjusted diluted
earnings per share (both reported and on a constant-currency
basis), organic net revenues, Adjusted free cash flow, and return
on invested capital to provide investors with additional useful
information about its financial performance, to enhance the overall
understanding of its past performance and future prospects and to
allow for greater transparency with respect to important metrics
used by management for financial and operating decision-making. The
company presents these non-GAAP financial measures to assist
investors in seeing its financial performance from management's
view and because it believes they provide an additional tool for
investors to use in computing the company's core financial
performance over multiple periods with other companies in its
industry. The tables found below present Adjusted SG&A,
Adjusted SG&A margin, Adjusted EBIT (both reported and on a
constant-currency basis), Adjusted EBIT margin (both reported and
on a constant-currency basis), Adjusted net income (both reported
and on a constant-currency basis), Adjusted diluted earnings per
share (both reported and on a constant-currency basis), organic net
revenues, Adjusted free cash flow, and return on invested capital
and corresponding reconciliations of these non-GAAP financial
measures to the most directly comparable financial measures
calculated in accordance with GAAP. Non-GAAP financial measures
have limitations in their usefulness to investors because they have
no standardized meaning prescribed by GAAP and are not prepared
under any comprehensive set of accounting rules or principles.
Certain items that may be excluded or included in non-GAAP
financial measures may be significant items that could impact the
company’s financial position, results of operations and cash flows
and should therefore be considered in assessing the company’s
actual financial condition and performance. Non-GAAP financial
measures are subject to inherent limitations as they reflect the
exercise of judgment by management in determining how they are
formulated. Some specific limitations include but are not limited
to, the fact that such non-GAAP financial measures: (a) do not
reflect cash outlays for capital expenditures, contractual
commitments or liabilities including pension obligations,
post-retirement health benefit obligations and income tax
liabilities; (b) do not reflect changes in, or cash requirements
for, working capital requirements; and (c) do not reflect the
interest expense, or the cash requirements necessary to service
interest or principal payments, on indebtedness. In addition,
non-GAAP financial measures may be calculated differently from, and
therefore may not be directly comparable to, similarly titled
measures used by other companies. As a result, non-GAAP financial
measures should be viewed as supplementing, and not as an
alternative or substitute for, the company's financial results
prepared in accordance with GAAP. The company urges investors to
review the reconciliation of these non-GAAP financial measures to
the most directly comparable GAAP financial measures included in
this press release, and not to rely on any single financial measure
to evaluate its business. See “RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES” below for reconciliation to the most comparable
GAAP financial measures. A reconciliation of non-GAAP forward
looking information to the corresponding GAAP measures cannot be
provided without unreasonable efforts due to the challenge in
quantifying various items including but not limited to, the effects
of foreign currency fluctuations, taxes, and any future
restructuring, restructuring-related, severance and other
charges.
Organic Net Revenues and Constant-Currency
The company reports net revenues on an organic net revenues
basis in order to facilitate period-to-period comparisons of our
revenues which excludes the impact of fluctuating foreign currency
exchange rates from the change in reported net revenues, net
revenues derived from business acquisitions or divestitures
impacting the previous 12 months of the reporting date and the
estimated impact of any 53rd week. The company reports certain
operating results on a constant-currency basis in order to
facilitate period-to-period comparisons of its results without
regard to the impact of fluctuating foreign currency exchange
rates.
The term foreign currency exchange rates refers to the exchange
rates used to translate the company's operating results for all
countries where the functional currency is not the U.S. Dollar into
U.S. Dollars. Because the company is a global company, foreign
currency exchange rates used for translation may have a significant
effect on its reported results. In general, the company's financial
results are affected positively by a weaker U.S. Dollar and are
affected negatively by a stronger U.S. Dollar as compared to the
foreign currencies in which it conducts its business. References to
operating results on a constant-currency basis mean operating
results without the impact of foreign currency translation
fluctuations.
The company calculates constant-currency amounts by translating
local currency amounts in the prior-year period at actual foreign
currency exchange rates for the current period. Constant-currency
results do not eliminate the transaction currency impact, which
primarily includes the realized and unrealized gains and losses
recognized from the measurement and remeasurement of purchases and
sales of products in a currency other than the functional currency
and of forward foreign exchange contracts.
The company believes disclosure of organic net revenues and
Adjusted EBIT constant-currency, Adjusted EBIT Margin
constant-currency and Adjusted Net Income constant-currency results
are helpful to investors because it facilitates period-to-period
comparisons of its results by increasing the transparency of the
underlying performance by excluding the impact of fluctuating
foreign currency exchange rates. However, organic net revenues and
constant-currency results are non-GAAP financial measures and are
not meant to be considered in isolation or as a substitute for
comparable measures prepared in accordance with GAAP. Organic net
revenues and constant-currency results have no standardized meaning
prescribed by GAAP, are not prepared under any comprehensive set of
accounting rules or principles and should be read in conjunction
with the company's consolidated financial statements prepared in
accordance with GAAP. Organic net revenues and constant-currency
results have limitations in their usefulness to investors and may
be calculated differently from, and therefore may not be directly
comparable to, similarly titled measures used by other
companies.
Source: Levi Strauss & Co. Investor Relations
LEVI STRAUSS & CO. AND
SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
December 1,
2024
November 26,
2023
(Dollars in millions)
ASSETS
Current Assets:
Cash and cash equivalents
$
690.0
$
398.8
Trade receivables, net
710.0
752.7
Inventories
1,239.4
1,290.1
Other current assets
211.7
196.0
Total current assets
2,851.1
2,637.6
Property, plant and equipment, net
698.7
680.7
Goodwill
277.6
303.7
Other intangible assets, net
196.6
267.6
Deferred tax assets, net
798.5
729.5
Operating lease right-of-use assets,
net
1,088.6
1,033.9
Other non-current assets
464.4
400.6
Total assets
$
6,375.5
$
6,053.6
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities:
Accounts payable
$
663.4
$
567.9
Accrued salaries, wages and employee
benefits
234.2
214.9
Accrued sales returns and allowances
193.4
189.8
Short-term operating lease liabilities
253.3
245.5
Other accrued liabilities
666.2
569.4
Total current liabilities
2,010.5
1,787.5
Long-term debt
994.0
1,009.4
Postretirement medical benefits
30.8
33.6
Pension liabilities
112.8
111.1
Long-term employee related benefits
110.0
102.2
Long-term operating lease liabilities
960.5
913.1
Other long-term liabilities
186.4
50.3
Total liabilities
4,405.0
4,007.2
Commitments and contingencies
Stockholders’ Equity:
Common stock — $0.001 par value;
1,200,000,000 Class A shares authorized; 103,984,741 shares and
102,104,670 shares issued and outstanding as of December 1, 2024
and November 26, 2023, respectively; and 422,000,000 Class B shares
authorized, 291,411,568 shares and 295,243,353 shares issued and
outstanding, as of December 1, 2024 and November 26, 2023,
respectively
0.4
0.4
Additional paid-in capital
732.6
686.7
Accumulated other comprehensive loss
(434.5
)
(390.9
)
Retained earnings
1,672.0
1,750.2
Total stockholders’ equity
1,970.5
2,046.4
Total liabilities and stockholders’
equity
$
6,375.5
$
6,053.6
The notes accompanying our consolidated
financial statements in our Form 10-K are an integral part of these
consolidated financial statements.
LEVI STRAUSS & CO. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
INCOME
(Unaudited)
Three Months Ended
Twelve Months Ended
December 1,
2024
November 26,
2023
December 1,
2024
November 26,
2023
(Dollars in millions, except
per share amounts)
Net revenues
$
1,839.7
$
1,642.3
$
6,355.3
$
6,179.0
Cost of goods sold
712.8
692.6
2,539.4
2,663.3
Gross profit
1,126.9
949.7
3,815.9
3,515.7
Selling, general and administrative
expenses
900.7
797.5
3,246.2
3,051.9
Restructuring charges, net
14.0
1.0
188.7
20.3
Goodwill and other intangible asset
impairment charges
—
—
116.9
90.2
Operating income
212.2
151.2
264.1
353.3
Interest expense
(11.4
)
(10.5
)
(41.8
)
(45.9
)
Other expense, net
(1.0
)
(4.1
)
(3.3
)
(42.2
)
Income before income taxes
199.8
136.6
219.0
265.2
Income tax expense
17.2
9.8
8.4
15.6
Net income
$
182.6
$
126.8
$
210.6
$
249.6
Earnings per common share:
Basic
$
0.46
$
0.32
$
0.53
$
0.63
Diluted
$
0.46
$
0.32
$
0.52
$
0.62
Weighted-average common shares
outstanding:
Basic
397,118,902
398,058,884
398,233,739
397,208,535
Diluted
400,977,404
401,583,297
402,368,603
401,723,167
The notes accompanying our consolidated
financial statements in our Form 10-K are an integral part of these
consolidated financial statements.
LEVI STRAUSS & CO. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
CASH FLOWS
Year Ended
December 1,
2024
November 26,
2023
(Dollars in millions)
Cash Flows from Operating
Activities:
Net income
$
210.6
$
249.6
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
193.2
165.3
Goodwill and other intangible asset
impairment
116.9
90.2
Property, plant, equipment and
right-of-use asset impairment, and gain/loss on early lease
terminations, net
22.3
66.4
Stock-based compensation
62.8
74.4
Benefit from deferred income taxes
(91.1
)
(104.3
)
Other, net
33.2
2.4
Net change in operating assets and
liabilities
350.5
(108.5
)
Net cash provided by operating
activities
898.4
435.5
Cash Flows from Investing
Activities:
Purchases of property, plant and
equipment
(227.5
)
(313.6
)
Payments for business acquisition
(34.4
)
(12.1
)
(Payments) proceeds on settlement of
forward foreign exchange contracts not designated for hedge
accounting
(17.4
)
16.1
Proceeds from sale, maturity and
collection of short-term investments
—
70.8
Other investing activities, net
(1.8
)
(1.9
)
Net cash used for investing activities
(281.1
)
(240.7
)
Cash Flows from Financing
Activities:
Proceeds from senior revolving credit
facility
—
200.0
Repayments of senior revolving credit
facility
—
(200.0
)
Repurchase of common stock
(90.1
)
(8.1
)
Tax withholdings on equity awards
(24.7
)
(22.5
)
Dividend to stockholders
(198.5
)
(190.5
)
Other financing activities, net
(6.0
)
7.0
Net cash used for financing activities
(319.3
)
(214.1
)
Effect of exchange rate changes on cash
and cash equivalents and restricted cash
(6.8
)
(11.5
)
Net increase (decrease) in cash and cash
equivalents and restricted cash
291.2
(30.8
)
Beginning cash and cash equivalents
398.8
429.6
Ending cash and cash
equivalents
$
690.0
$
398.8
Noncash Investing Activity:
Property, plant and equipment acquired and
not yet paid at end of period
$
65.4
$
59.6
Supplemental disclosure of cash flow
information:
Cash paid for interest during the
period
$
38.2
$
42.8
Cash paid for income taxes during the
period, net of refunds
102.3
89.3
The notes accompanying our consolidated
financial statements in our Form 10-K are an integral part of these
consolidated financial statements.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
MEASURES
FOR THE FOURTH QUARTER AND FISCAL YEAR
2024
The following information relates to non-GAAP financial
measures, and should be read in conjunction with the investor call
held on January 29, 2025, discussing the company’s financial
condition and results of operations as of and for the quarter and
year ended December 1, 2024.
We define the following non-GAAP measures as follows:
Most comparable GAAP measure
Non-GAAP measure
Non-GAAP measure definition
Selling, general and administration
(“SG&A”) expenses
Adjusted SG&A
SG&A expenses excluding acquisition
and integration related charges, property, plant, and equipment,
right-of-use asset impairment, and early lease terminations, net
and restructuring related charges, severance and other, net.
SG&A margin
Adjusted SG&A margin
Adjusted SG&A as a percentage of net
revenues
Net income
Adjusted EBIT
Net income excluding income tax expense,
interest expense, other expense, net, acquisition and integration
related charges, property, plant, equipment, right-of-use asset
impairment, and early lease terminations, net, goodwill and other
intangible asset impairment charges, restructuring charges, net and
restructuring related charges, severance and other, net.
Net income margin
Adjusted EBIT margin
Adjusted EBIT as a percentage of net
revenues.
Net income
Adjusted net income
Net income excluding acquisition and
integration related charges, property, plant, equipment,
right-of-use asset impairment, and early lease terminations, net,
goodwill and other intangible asset impairment charges,
restructuring charges, net, restructuring related charges,
severance and other, net, and pension settlement loss, adjusted to
give effect to the income tax impact of such adjustments.
Net income
Adjusted EBITDA
Adjusted EBIT excluding depreciation and
amortization expense
Net income margin
Adjusted net income margin
Adjusted net income as a percentage of net
revenues
Diluted earnings per share
Adjusted diluted earnings per share
Adjusted net income per weighted-average
number of diluted common shares outstanding
Adjusted SG&A:
Three Months Ended
Twelve Months Ended
December 1,
2024
November 26,
2023
December 1,
2024
November 26,
2023
(Dollars in millions)
Most comparable GAAP measure:
Selling, general and administrative
expenses
$
900.7
$
797.5
$
3,246.2
$
3,051.9
Non-GAAP measure:
Selling, general and administrative
expenses
900.7
797.5
3,246.2
3,051.9
Acquisition and integration related
charges(1)
—
(1.3
)
(4.0
)
(5.0
)
Property, plant, equipment, right-of-use
asset impairment, and early lease terminations, net(2)
—
(38.7
)
(11.1
)
(63.4
)
Restructuring related charges, severance
and other, net(3)
(20.6
)
(7.9
)
(65.1
)
(22.6
)
Adjusted SG&A
$
880.1
$
749.6
$
3,166.0
$
2,960.9
SG&A margin
49.0
%
48.6
%
51.1
%
49.4
%
Adjusted SG&A margin
47.8
%
45.6
%
49.8
%
47.9
%
_____________
(1)
Acquisition and integration related
charges includes acquisition-related compensation subject to the
continued employment of certain Beyond Yoga® employees. In the
first quarter of 2024, their employment ceased, resulting in the
acceleration of the remaining compensation.
(2)
For the three months ended November 26,
2023, property, plant, equipment, right-of-use asset impairment,
and early lease terminations, net primarily includes charges of
$24.4 million related to the impairment of capitalized internal-use
software as a result of the decision to discontinue certain
technology projects, $14.3 million of impairment related to certain
store assets, primarily in the U.S. and as the result of poor store
performance.
For the year ended December 1, 2024,
property, plant, equipment, right-of-use asset impairment, and
early lease terminations, net primarily includes $11.1 million of
impairments related to technology projects discontinued as a result
of Project Fuel. For the year ended November 26, 2023, property,
plant, equipment, right-of-use asset impairment, and early lease
terminations, net primarily includes charges of $49.3 million
related to the impairment of capitalized internal-use software as a
result of the decision to discontinue certain technology projects,
$14.3 million of impairment related to certain store assets,
primarily in the U.S. and as the result of poor store performance,
a $3.9 million gain on the early termination of store leases in
Russia, and $3.7 million of impairment related to other
discontinued projects.
(3)
For the three months ended December 1,
2024, restructuring related charges, severance, and other, net
primarily relates to consulting fees associated with our
restructuring initiative of $20.0 million and transaction and deal
related costs of $1.6 million. For the three months ended November
26, 2023, restructuring related charges, severance, and other, net
primarily includes consulting costs associated with our
restructuring initiative of $5.0 million.
For the year ended December 1, 2024,
restructuring related charges, severance, and other, net primarily
relates to consulting fees associated with our restructuring
initiative of $54.3 million, legal settlements of $8.4 million,
certain executive separation charges of $2.7 million, and
transaction and deal related costs of $3.3 million, offset by a
favorable sales-tax related settlement of $4.4 million. For the
year ended November 26, 2023, restructuring related charges,
severance and other, net primarily relates to certain executive
severance and separation charges of $9.5 million, consulting costs
associated with our restructuring initiative of $5.0 million, costs
associated with the wind-down of the Russia business, including
severance of $3.8 million.
Adjusted EBIT and Adjusted
EBITDA:
Three Months Ended
Twelve Months Ended
December 1,
2024
November 26,
2023
December 1,
2024
November 26,
2023
(Dollars in millions)
Most comparable GAAP measure:
Net income
$
182.6
$
126.8
$
210.6
$
249.6
Non-GAAP measure:
Net income
182.6
126.8
210.6
249.6
Income tax expense
17.2
9.8
8.4
15.6
Interest expense
11.4
10.5
41.8
45.9
Other expense, net
1.0
4.1
3.3
42.2
Acquisition and integration related
charges(1)
—
1.3
4.0
5.0
Property, plant, equipment, right-of-use
asset impairment, and early lease terminations, net(2)
—
38.7
11.1
63.4
Goodwill and other intangible asset
impairment charges(3)
—
—
116.9
90.2
Restructuring charges, net(4)
14.0
1.0
188.7
20.3
Restructuring related charges, severance
and other, net(5)
20.6
7.9
65.1
22.6
Adjusted EBIT
$
246.8
$
200.1
$
649.9
$
554.8
Depreciation and amortization(6)
54.4
42.1
192.9
160.8
Adjusted EBITDA
$
301.2
$
242.2
$
842.8
$
715.6
Net income margin
9.9
%
7.7
%
3.3
%
4.0
%
Adjusted EBIT margin
13.4
%
12.2
%
10.2
%
9.0
%
____________
(1)
Acquisition and integration related
charges includes acquisition-related compensation subject to the
continued employment of certain Beyond Yoga® employees. In the
first quarter of 2024, their employment ceased, resulting in the
acceleration of the remaining compensation.
(2)
For the three months ended November 26,
2023, property, plant, equipment, right-of-use asset impairment,
and early lease terminations, net primarily includes charges of
$24.4 million related to the impairment of capitalized internal-use
software as a result of the decision to discontinue certain
technology projects, $14.3 million of impairment related to certain
store assets, primarily in the U.S. and as the result of poor store
performance.
For the year ended December 1, 2024,
property, plant, equipment, right-of-use asset impairment, and
early lease terminations, net primarily includes $11.1 million of
impairments related to technology projects discontinued as a result
of Project Fuel. For the year ended November 26, 2023, property,
plant, equipment, right-of-use asset impairment, and early lease
terminations, net primarily includes charges of $49.3 million
related to the impairment of capitalized internal-use software as a
result of the decision to discontinue certain technology projects,
$14.3 million of impairment related to certain store assets,
primarily in the U.S. and as the result of poor store performance,
a $3.9 million gain on the early termination of store leases in
Russia, and $3.7 million of impairment related to other
discontinued projects.
(3)
For the year ended December 1, 2024,
goodwill and other intangible asset impairment charges includes
impairment charges of $36.3 million related to Beyond Yoga®
reporting unit goodwill, $66.0 million related to the Beyond Yoga®
trademark, $9.1 million related to the Beyond Yoga® customer
relationship intangible assets and a $5.5 million goodwill
impairment charge related to our footwear business. For the year
ended November 26, 2023, goodwill and other intangible asset
impairment charges includes impairment charges of $75.4 million
related to Beyond Yoga® reporting unit goodwill and $14.8 million
related to the Beyond Yoga® trademark.
(4)
For the three months ended December 1,
2024, restructuring charges, net includes $14.0 million related to
Project Fuel consisting primarily of severance and other
post-employment benefit charges, contract terminations and asset
impairments.
For the year ended December 1, 2024,
restructuring charges, net includes $188.7 million related to
Project Fuel consisting primarily of severance and other
post-employment benefit charges, contract terminations and asset
impairments. For the year ended November 26, 2023, restructuring
charges, net includes $20.3 million consisting primarily of
severance and post-employment benefits related to a restructuring
initiative that commenced in 2022.
(5)
For the three months ended December 1,
2024, restructuring related charges, severance, and other, net
primarily relates to consulting fees associated with our
restructuring initiative of $20.0 million and transaction and deal
related costs of $1.6 million. For the three months ended November
26, 2023, restructuring related charges, severance, and other, net
primarily includes consulting costs associated with our
restructuring initiative of $5.0 million.
For the year ended December 1, 2024,
restructuring related charges, severance, and other, net primarily
relates to consulting fees associated with our restructuring
initiative of $54.3 million, legal settlements of $8.4 million,
certain executive separation charges of $2.7 million, and
transaction and deal related costs of $3.3 million, offset by a
favorable sales-tax related settlement of $4.4 million. For the
year ended November 26, 2023, restructuring related charges,
severance and other, net primarily relates to certain executive
severance and separation charges of $9.5 million, consulting costs
associated with our restructuring initiative of $5.0 million, and
costs associated with the wind-down of the Russia business,
including severance of $3.8 million.
(6)
Depreciation and amortization for both the
three months ended December 1, 2024 and November 26, 2023 is net of
$0.1 million of amortization included in restructuring related
charges, severance and other, net.
(7)
Depreciation and amortization for the
years ended December 1, 2024 and November 26, 2023 is net of $0.3
million and $0.4 million, respectively, of amortization included in
restructuring related charges, severance and other, net.
Adjusted Net Income:
Three Months Ended
Twelve Months Ended
December 1,
2024
November 26,
2023
December 1,
2024
November 26,
2023
(Dollars in millions, except
per share amounts)
Most comparable GAAP measure:
Net income
$
182.6
$
126.8
$
210.6
$
249.6
Non-GAAP measure:
Net income
182.6
126.8
210.6
249.6
Acquisition and integration related
charges(1)
—
1.3
4.0
5.0
Property, plant, equipment, right-of-use
asset impairment, and early lease terminations, net(2)
—
38.7
11.1
63.4
Goodwill and other intangible asset
impairment charges(3)
—
—
116.9
90.2
Restructuring charges, net(4)
14.0
1.0
188.7
20.3
Restructuring related charges, severance
and other, net(5)
20.7
7.9
61.1
22.6
Pension settlement loss(6)
—
—
—
19.0
Tax impact of adjustments(7)
(15.1
)
2.9
(89.7
)
(29.4
)
Adjusted net income
$
202.2
$
178.6
$
502.7
$
440.7
Net income margin
9.9
%
7.7
%
3.3
%
4.0
%
Adjusted net income margin
11.0
%
10.9
%
7.9
%
7.1
%
_____________
(1)
Acquisition and integration related
charges includes acquisition-related compensation subject to the
continued employment of certain Beyond Yoga® employees. In the
first quarter of 2024, their employment ceased, resulting in the
acceleration of the remaining compensation.
(2)
For the three months ended November 26,
2023, property, plant, equipment, right-of-use asset impairment,
and early lease terminations, net primarily includes charges of
$24.4 million related to the impairment of capitalized internal-use
software as a result of the decision to discontinue certain
technology projects, $14.3 million of impairment related to certain
store assets, primarily in the U.S. and as the result of poor store
performance.
For the year ended December 1, 2024,
property, plant, equipment, right-of-use asset impairment, and
early lease terminations, net primarily includes $11.1 million of
impairments related to technology projects discontinued as a result
of Project Fuel. For the year ended November 26, 2023, property,
plant, equipment, right-of-use asset impairment, and early lease
terminations, net primarily includes charges of $49.3 million
related to the impairment of capitalized internal-use software as a
result of the decision to discontinue certain technology projects,
$14.3 million of impairment related to certain store assets,
primarily in the U.S. and as the result of poor store performance,
$3.7 million of impairment charges related to other discontinued
projects, net of a $3.9 million gain on the early termination of
certain store leases in Russia.
(3)
For the year ended December 1, 2024,
goodwill and other intangible asset impairment charges includes
impairment charges of $36.3 million related to Beyond Yoga®
reporting unit goodwill, $66.0 million related to the Beyond Yoga®
trademark, $9.1 million related to the Beyond Yoga® customer
relationship intangible assets and a $5.5 million goodwill
impairment charge related to our footwear business. For the year
ended November 26, 2023, goodwill and other intangible asset
impairment charges includes impairment charges of $75.4 million
related to Beyond Yoga® reporting unit goodwill and $14.8 million
related to the Beyond Yoga® trademark.
(4)
For the three months ended December 1,
2024, restructuring charges, net includes $14.0 million related to
Project Fuel consisting primarily of severance and other
post-employment benefit charges, contract terminations and asset
impairments.
For the year ended December 1, 2024,
restructuring charges, net includes $188.7 million related to
Project Fuel consisting primarily of severance and other
post-employment benefit charges, contract terminations and asset
impairments. For the year ended November 26, 2023, restructuring
charges, net includes $20.3 million consisting primarily of
severance and post-employment benefits related to a restructuring
initiative that commenced in 2022.
(5)
For the three months ended December 1,
2024, restructuring related charges, severance, and other, net
primarily relates to consulting fees associated with our
restructuring initiative of $20.0 million and transaction and deal
related costs of $1.6 million. For the three months ended November
26, 2023, restructuring related charges, severance, and other, net
primarily includes consulting costs associated with our
restructuring initiative of $5.0 million.
For the year ended December 1, 2024,
restructuring related charges, severance, and other, net primarily
relates to consulting fees associated with our restructuring
initiative of $54.3 million, legal settlements of $8.4 million,
certain executive separation charges of $2.7 million, and
transaction and deal related costs of $3.3 million, offset by a
favorable sales-tax related settlement of $4.4 million, as well as
an insurance recovery of $2.7 million and a government subsidy gain
of $1.4 million both of which were recorded within Other (expense)
income, net. For the year ended November 26, 2023, restructuring
related charges, severance and other, net primarily relates to
certain executive severance and separation charges of $9.5 million,
consulting costs associated with our restructuring initiative of
$5.0 million, and costs associated with the wind-down of the Russia
business, including severance of $3.8 million.
(6)
For the year ended November 26, 2023, the
pension settlement relates to the Company purchasing
nonparticipating annuity contracts in order to transfer certain
retiree liabilities to an insurer, resulting in a one-time
settlement charge of $19.0 million.
(7)
Tax impact calculated using the annual
effective tax rate, excluding the strategic intercompany sale of
intellectual property during the fourth quarter of 2024. For the
year ended December 1, 2024, the tax impact of the Beyond Yoga®
impairment charges were calculated using the U.S. specific tax rate
of 24%. Excluding the impacts of the Beyond Yoga® impairment
charges and the strategic intercompany sale of intellectual
property, the effective tax rate for year ended December 1, 2024 is
approximately 24%. For the year ended November 26, 2023, the tax
impact of the Beyond Yoga® impairment charges were calculated using
the U.S. specific tax rate of 24%. Excluding the impact of the
Beyond Yoga® impairment charges, the effective tax rate for year
ended November 26, 2023 is approximately 10%.
Adjusted Diluted Earnings per
Share:
Three Months Ended
Twelve Months Ended
December 1,
2024
November 26,
2023
December 1,
2024
November 26,
2023
(Dollars in millions, except
per share amounts)
Most comparable GAAP measure:
Diluted earnings per share
$
0.46
$
0.32
$
0.52
$
0.62
Non-GAAP measure:
Diluted earnings per share
$
0.46
$
0.32
$
0.52
$
0.62
Acquisition and integration related
charges(1)
—
—
0.01
0.01
Property, plant, equipment, right-of-use
asset impairment, and early lease terminations, net(2)
—
0.09
0.03
0.16
Goodwill and other intangible asset
impairment charges(3)
—
—
0.29
0.22
Restructuring charges, net(4)
0.03
—
0.47
0.05
Restructuring related charges, severance
and other, net(5)
0.05
0.02
0.15
0.06
Pension settlement losses(6)
—
—
—
0.05
Tax impact of adjustments(7)
(0.04
)
0.01
(0.22
)
(0.07
)
Adjusted diluted earnings per
share
$
0.50
$
0.44
$
1.25
$
1.10
_____________
(1)
Acquisition and integration related
charges includes acquisition-related compensation subject to the
continued employment of certain Beyond Yoga® employees. In the
first quarter of 2024, their employment ceased, resulting in the
acceleration of the remaining compensation.
(2)
For the three months ended November 26,
2023, property, plant, equipment, right-of-use asset impairment,
and early lease terminations, net primarily includes charges of
$24.4 million related to the impairment of capitalized internal-use
software as a result of the decision to discontinue certain
technology projects, $14.3 million of impairment related to certain
store assets, primarily in the U.S. and as the result of poor store
performance.
For the year ended December 1, 2024,
property, plant, equipment, right-of-use asset impairment, and
early lease terminations, net primarily includes $11.1 million of
impairments related to technology projects discontinued as a result
of Project Fuel. For the year ended November 26, 2023, property,
plant, equipment, right-of-use asset impairment, and early lease
terminations, net primarily includes charges of $49.3 million
related to the impairment of capitalized internal-use software as a
result of the decision to discontinue certain technology projects,
$14.3 million of impairment related to certain store assets,
primarily in the U.S. and as the result of poor store performance,
a $3.9 million gain on the early termination of store leases in
Russia, and $3.7 million of impairment related to other
discontinued projects.
(3)
For the year ended December 1, 2024,
goodwill and other intangible asset impairment charges includes
impairment charges of $36.3 million related to Beyond Yoga®
reporting unit goodwill, $66.0 million related to the Beyond Yoga®
trademark, $9.1 million related to the Beyond Yoga® customer
relationship intangible assets and a $5.5 million goodwill
impairment charge related to our footwear business. For the year
ended November 26, 2023, goodwill and other intangible asset
impairment charges includes impairment charges of $75.4 million
related to Beyond Yoga® reporting unit goodwill and $14.8 million
related to the Beyond Yoga® trademark.
(4)
For the three months ended December 1,
2024, restructuring charges, net includes $14.0 million related to
Project Fuel consisting primarily of severance and other
post-employment benefit charges, contract terminations and asset
impairments.
For the year ended December 1, 2024,
restructuring charges, net includes $188.7 million related to
Project Fuel consisting primarily of severance and other
post-employment benefit charges, contract terminations and asset
impairments. For the year ended November 26, 2023, restructuring
charges, net includes $20.3 million consisting primarily of
severance and post-employment benefits related to a restructuring
initiative that commenced in 2022.
(5)
For the three months ended December 1,
2024, restructuring related charges, severance, and other, net
primarily relates to consulting fees associated with our
restructuring initiative of $20.0 million and transaction and deal
related costs of $1.6 million. For the three months ended November
26, 2023, restructuring related charges, severance, and other, net
primarily includes consulting costs associated with our
restructuring initiative of $5.0 million.
For the year ended December 1, 2024,
restructuring related charges, severance, and other, net primarily
relates to consulting fees associated with our restructuring
initiative of $54.3 million, legal settlements of $8.4 million,
certain executive separation charges of $2.7 million, and
transaction and deal related costs of $3.3 million, offset by a
favorable sales-tax related settlement of $4.4 million, as well as
an insurance recovery of $2.7 million and a government subsidy gain
of $1.4 million both of which were recorded within Other (expense)
income, net. For the year ended November 26, 2023, restructuring
related charges, severance and other, net primarily relates to
certain executive severance and separation charges of $9.5 million,
consulting costs associated with our restructuring initiative of
$5.0 million, and costs associated with the wind-down of the Russia
business, including severance of $3.8 million.
(6)
For the year ended November 26, 2023, the
pension settlement relates to the Company purchasing
nonparticipating annuity contracts in order to transfer certain
retiree liabilities to an insurer, resulting in a one-time
settlement charge of $19.0 million.
(7)
Tax impact calculated using the annual
effective tax rate, excluding the strategic intercompany sale of
intellectual property during the fourth quarter of 2024. For the
year ended December 1, 2024, the tax impact of the Beyond Yoga®
impairment charges were calculated using the U.S. specific tax rate
of 24%. Excluding the impacts of the Beyond Yoga® impairment
charges and the strategic intercompany sale of intellectual
property, the effective tax rate for year ended December 1, 2024 is
approximately 24%. For the year ended November 26, 2023, the tax
impact of the Beyond Yoga® impairment charges were calculated using
the U.S. specific tax rate of 24%. Excluding the impact of the
Beyond Yoga® impairment charges, the effective tax rate for year
ended November 26, 2023 is approximately 10%.
Adjusted Free Cash Flow:
We define Adjusted free cash flow, a non-GAAP financial measure,
as net cash flow from operating activities less purchases of
property, plant and equipment. We believe Adjusted free cash flow
is an important liquidity measure of the cash that is available
after capital expenditures for operational expenses and investment
in our business. We believe Adjusted free cash flow is useful to
investors because it measures our ability to generate or use cash.
Once our business needs and obligations are met, cash can be used
to maintain a strong balance sheet, invest in future growth and
return capital to stockholders.
The following table presents a reconciliation of net cash flow
from operating activities, the most directly comparable financial
measure calculated in accordance with GAAP, to Adjusted free cash
flow for each of the periods presented.
Three Months Ended
Twelve Months Ended
December 1,
2024
November 26,
2023
December 1,
2024
November 26,
2023
(Dollars in millions)
Most comparable GAAP measure:
Net cash provided by operating
activities
$
297.3
$
258.9
$
898.4
$
435.5
Net cash used for investing activities
(88.9
)
(79.8
)
(281.1
)
(240.7
)
Net cash used for financing activities
(90.2
)
(75.0
)
(319.3
)
(214.1
)
Non-GAAP measure:
Net cash provided by operating
activities
$
297.3
$
258.9
$
898.4
$
435.5
Purchases of property, plant and
equipment
(65.7
)
(63.2
)
(227.5
)
(313.6
)
Adjusted free cash flow
$
231.6
$
195.7
$
670.9
$
121.9
Return on Invested Capital:
We define Return on invested capital (“ROIC”) as the trailing
four quarters of Adjusted net income before interest and after
taxes divided by the average trailing five quarters of total
invested capital. We define total invested capital as total debt
plus shareholders' equity less cash and short-term investments. We
believe ROIC is useful to investors as it quantifies how
efficiently we generated operating income relative to the capital
we have invested in the business.
Our calculation of ROIC is considered a non-GAAP financial
measure because we calculate ROIC using the non-GAAP metric
Adjusted net income. Although ROIC is a standard financial metric,
numerous methods exist for calculating a company's ROIC. As a
result, the method we use to calculate our ROIC may differ from the
methods used by other companies. This metric is not defined by GAAP
and should not be considered as an alternative to earnings measures
defined by GAAP.
The table below sets forth the calculation of ROIC for each of
the periods presented.
Trailing Four Quarters
December 1,
2024
November 26,
2023
(Dollars in millions)
Net income
$
210.6
$
249.6
Numerator
Adjusted net income(1)
$
502.7
$
440.7
Interest expense
41.8
45.9
Adjusted Income tax expense
98.1
45.0
Adjusted net income before interest and
taxes
$
642.6
$
531.6
Income tax adjustment(2)
(104.9
)
(49.3
)
Adjusted net income before interest and
after taxes
$
537.7
$
482.3
_____________
(1)
Adjusted net income is reconciled from net
income which is the most comparable GAAP measure. Refer to Adjusted
net income table for more information.
(2)
Tax impact calculated using the adjusted
annual effective tax rate, excluding discrete costs and
benefits.
Average Trailing Five
Quarters
December 1,
2024
November 26,
2023
(Dollars in millions)
Denominator
Total debt
$
2,198.2
$
2,167.3
Shareholders' equity
1,964.0
1,959.4
Cash and Short-term investments
(564.8
)
(397.4
)
Total invested Capital
$
3,597.4
$
3,729.3
Net income to Total invested capital
5.9
%
6.7
%
Return on Invested Capital
14.9
%
12.9
%
Organic Net Revenues and Constant-Currency:
The table below sets forth the calculation of net revenues by
segment on an organic net revenues basis for the three-month and
twelve-month periods ended December 1, 2024.
Three Months Ended
Twelve Months Ended
December 1,
2024
November 26,
2023
% Increase
(Decrease)
December 1,
2024
November 26,
2023
% Increase
(Decrease)
(Dollars in millions)
Total revenues
As reported
$
1,839.7
$
1,642.3
12.0
%
$
6,355.3
$
6,179.0
2.9
%
Impact of foreign currency exchange
rates
—
(8.1
)
—
(47.2
)
Impact of 53rd week
(84.5
)
—
(84.5
)
—
Net revenues from Denizen divestiture
(5.5
)
(17.8
)
(33.2
)
(86.2
)
Net revenues from Footwear category
divestiture
(14.5
)
(8.3
)
(63.2
)
(61.3
)
Organic net revenues
$
1,735.2
$
1,608.1
7.9
%
$
6,174.4
$
5,984.3
3.2
%
Americas
As reported
$
995.4
$
888.3
12.1
%
$
3,200.6
$
3,086.9
3.7
%
Impact of foreign currency exchange
rates
—
(14.5
)
—
(14.3
)
Impact of 53rd week
(56.0
)
—
(56.0
)
—
Net revenues from Denizen divestiture
(5.5
)
(17.8
)
(33.2
)
(86.2
)
Organic net revenues - Americas
$
933.9
$
856.0
9.1
%
$
3,111.4
$
2,986.4
4.2
%
Europe
As reported
$
434.1
$
379.0
14.5
%
$
1,617.9
$
1,579.5
2.4
%
Impact of foreign currency exchange
rates
—
7.4
—
8.4
Impact of 53rd week
(20.4
)
—
(20.4
)
—
Net revenues from Footwear category
divestiture
(14.5
)
(8.3
)
(63.2
)
(61.3
)
Organic net revenues - Europe
$
399.2
$
378.1
5.6
%
$
1,534.3
$
1,526.6
0.5
%
Asia
As reported
$
286.5
$
262.0
9.4
%
$
1,082.4
$
1,059.7
2.1
%
Impact of foreign currency exchange
rates
—
1.3
—
(37.0
)
Organic net revenues - Asia
$
286.5
$
263.3
8.8
%
$
1,082.4
$
1,022.7
5.8
%
Other
As reported
$
123.7
$
113.0
9.5
%
$
454.4
$
452.9
0.3
%
Impact of foreign currency exchange
rates
—
(2.3
)
—
(4.3
)
Impact of 53rd week
(8.0
)
—
(8.0
)
—
Organic net revenues - Other Brands
$
115.7
$
110.7
4.5
%
$
446.4
$
448.6
(0.5
)%
Dockers®
As reported
$
89.8
$
82.1
9.4
%
$
323.3
$
336.9
(4.0
)%
Impact of foreign currency exchange
rates
—
(2.3
)
—
(4.3
)
Impact of 53rd week
(6.1
)
—
(6.1
)
—
Organic net revenues - Dockers®
$
83.7
$
79.8
4.9
%
$
317.2
$
332.6
(4.6
)%
Beyond Yoga®
As reported
$
34.0
$
30.9
10.0
%
$
131.1
$
116.0
13.0
%
Impact of 53rd week
(1.9
)
—
(1.9
)
—
Organic net revenues - Beyond Yoga®
$
32.1
$
30.9
3.9
%
$
129.2
$
116.0
11.4
%
The table below sets forth the calculation of net revenues by
channel on an organic net revenues basis for the three-month and
twelve-month periods ended December 1, 2024.
Three Months Ended
Twelve Months Ended
December 1,
2024
November 26,
2023
% Increase
(Decrease)
December 1,
2024
November 26,
2023
% Increase
(Decrease)
(Dollars in millions)
Total net revenues
As reported
$
1,839.7
$
1,642.3
12.0
%
$
6,355.3
$
6,179.0
2.9
%
Impact of foreign currency exchange
rates
—
(8.1
)
—
(47.2
)
Impact of 53rd week
(84.5
)
—
(84.5
)
—
Net revenues from Denizen divestiture
(5.5
)
(17.8
)
(33.2
)
(86.2
)
Net revenues from Footwear category
divestiture
(14.5
)
(8.3
)
(63.2
)
(61.3
)
Organic net revenues
$
1,735.2
$
1,608.1
7.9
%
$
6,174.4
$
5,984.3
3.2
%
Wholesale
As reported
$
1,011.8
$
948.6
6.7
%
$
3,431.5
$
3,550.9
(3.4
)%
Impact of foreign currency exchange
rates
—
(8.4
)
—
(18.9
)
Impact of 53rd week
(45.8
)
—
(45.8
)
—
Net revenues from Denizen divestiture
(5.5
)
(17.8
)
(33.2
)
(86.2
)
Net revenues from Footwear category
divestiture
(14.5
)
(8.3
)
(63.2
)
(61.3
)
Organic net revenues - Wholesale
$
946.0
$
914.1
3.5
%
$
3,289.3
$
3,384.5
(2.8
)%
DTC
As reported
$
827.9
$
693.7
19.3
%
$
2,923.8
$
2,628.1
11.3
%
Impact of foreign currency exchange
rates
—
0.3
—
(28.3
)
Impact of 53rd week
(38.7
)
—
(38.7
)
—
Organic net revenues - DTC
$
789.2
$
694.0
13.7
%
$
2,885.1
$
2,599.8
11.0
%
The table below sets forth the calculation of net revenues by
brand on an organic net revenues basis for the three-month and
twelve-month periods ended December 1, 2024.
Three Months Ended
Year Ended
December 1,
2024
November 26,
2023
% Increase
(Decrease)
December 1,
2024
November 26,
2023
% Increase
(Decrease)
(Dollars in millions)
Total Levi’s Brands net
revenues
As reported
$
1,716.1
$
1,529.3
12.2
%
$
5,900.9
$
5,726.1
3.1
%
Impact of foreign currency exchange
rates
—
(5.8
)
—
(42.9
)
Impact of 53rd week
(76.5
)
—
(76.5
)
—
Net revenues from Denizen divestiture
(5.5
)
(17.8
)
(33.2
)
(86.2
)
Net revenues from Footwear category
divestiture
(14.5
)
(8.3
)
(63.2
)
(61.3
)
Organic net revenues
$
1,619.6
$
1,497.4
8.2
%
$
5,728.0
$
5,535.7
3.5
%
Levi’s®
As reported
$
1,637.5
$
1,451.5
12.8
%
$
5,641.8
$
5,403.4
4.4
%
Impact of foreign currency exchange
rates
—
(5.8
)
—
(42.9
)
Impact of 53rd week
(76.5
)
—
(76.5
)
—
Net revenues from Footwear category
divestiture
(14.5
)
(8.3
)
(63.2
)
(61.3
)
Organic net revenues - Levi’s®
$
1,546.5
$
1,437.4
7.6
%
$
5,502.1
$
5,299.2
3.8
%
Levi Strauss SignatureTM
As reported
$
73.1
$
60.0
21.8
%
$
225.9
$
236.5
(4.5
)%
Organic net revenues - Levi Strauss
SignatureTM
$
73.1
$
60.0
21.8
%
$
225.9
$
236.5
(4.5
)%
Denizen®
As reported
$
5.5
$
17.8
(69.1
)%
$
33.2
$
86.2
(61.5
)%
Net revenues from Denizen divestiture
$
(5.5
)
$
(17.8
)
$
(33.2
)
$
(86.2
)
Organic net revenues - Denizen®
$
—
$
—
*
$
—
$
—
*
* Not meaningful
Constant-Currency Adjusted EBIT and Constant-Currency
Adjusted EBIT Margin:
The table below sets forth the calculation of Adjusted EBIT and
Adjusted EBIT margin on a constant-currency basis for each of the
periods presented.
Three Months Ended
Twelve Months Ended
December 1,
2024
November 26,
2023
% Increase
December 1,
2024
November 26,
2023
% Decrease
(Dollars in millions)
Adjusted EBIT(1)
$
246.8
$
200.1
23.3
%
$
649.9
$
554.8
17.1
%
Impact of foreign currency exchange
rates
—
(2.9
)
*
—
(11.9
)
*
Constant-currency Adjusted EBIT
$
246.8
$
197.2
25.2
%
$
649.9
$
542.9
19.7
%
Adjusted EBIT margin
13.4
%
12.2
%
9.8
%
10.2
%
9.0
%
13.3
%
Impact of foreign currency exchange
rates
—
%
(0.1
)%
*
—
%
(0.1
)%
*
Constant-currency Adjusted EBIT
margin(2)
13.4
%
12.1
%
10.7
%
10.2
%
8.9
%
14.6
%
_____________
(1)
Adjusted EBIT is reconciled from net
income which is the most comparable GAAP measure. Refer to Adjusted
EBIT and Adjusted EBITDA table for more information.
(2)
We define constant-currency Adjusted EBIT
margin as constant-currency Adjusted EBIT as a percentage of
constant-currency net revenues.
* Not meaningful
Constant-Currency Adjusted Net Income and Adjusted Diluted
Earnings per Share:
The table below sets forth the calculation of Adjusted net
income and Adjusted diluted earnings per share on a
constant-currency basis for each of the periods presented.
Three Months Ended
Twelve Months Ended
December 1,
2024
November 26,
2023
% Increase
December 1,
2024
November 26,
2023
% Decrease
(Dollars in millions, except
per share amounts)
Adjusted net income(1)
$
202.2
$
178.6
13.2
%
$
502.7
$
440.7
14.1
%
Impact of foreign currency exchange
rates
—
(0.5
)
*
—
(5.3
)
*
Constant-currency Adjusted net income
$
202.2
$
178.1
13.5
%
$
502.7
$
435.4
15.5
%
Constant-currency Adjusted net income
margin(2)
11.0
%
10.9
%
7.9
%
7.1
%
Adjusted diluted earnings per share
$
0.50
$
0.44
13.6
%
$
1.25
$
1.10
13.6
%
Impact of foreign currency exchange
rates
—
—
*
—
(0.02
)
*
Constant-currency adjusted diluted
earnings per share
$
0.50
$
0.44
13.6
%
$
1.25
$
1.08
15.7
%
_____________
(1)
Adjusted net income is reconciled from net
income which is the most comparable GAAP measure. Refer to Adjusted
net income table for more information.
(2)
We define constant-currency Adjusted net
income margin as constant-currency Adjusted net income as a
percentage of constant-currency net revenues.
* Not meaningful
Revenue Impact of Divestitures:
In order to provide visibility regarding the anticipated
financial impact of the footwear and Denizen® divestitures, the
Company has provided additional information within the supplemental
table below, which includes net revenues reflected in the 2024
results from our footwear business and the Denizen® brand. We
believe providing the following information is useful to investors
to better understand the impact of the discontinuation to the
Company's future business.
Year Ended December 1,
2024
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full-Year
(Dollars in millions)
Footwear(1)
$
16.6
$
11.7
$
20.4
$
14.5
$
63.2
Denizen®(2)
14.5
10.0
3.2
5.5
33.2
_____________
(1)
In the first quarter of 2024 the Company
decided to discontinue its wholesale footwear business which
operates within our Europe segment. The business will continue
winding down operations through fiscal year 2025.
(2)
In the first quarter of 2024 we announced
the strategic decision to discontinue the Denizen® brand, which is
sold through wholesale accounts in the United States within our
Americas segment. The business will continue winding down
operations through fiscal year 2025.
In addition, in the fourth quarter of 2024 we announced we are
undertaking an evaluation of strategic alternatives to the global
Dockers® business, including a potential sale or other strategic
transactions. The supplemental table below includes Dockers® net
revenues reflected in the 2024 results.
Year Ended December 1,
2024
First Quarter
Second Quarter
Third Quarter
Fourth Quarter
Full-Year
(Dollars in millions)
Dockers®
$
77.4
$
82.4
$
73.7
$
89.8
$
323.3
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250129711398/en/
Investor Contact: Aida Orphan Levi Strauss & Co. (415)
501-6194 Investor-relations@levi.com
Media Contact: Elizabeth Owen Levi Strauss & Co. (415)
501-7777 newsmediarequests@levi.com
Levi Strauss (NYSE:LEVI)
過去 株価チャート
から 1 2025 まで 2 2025
Levi Strauss (NYSE:LEVI)
過去 株価チャート
から 2 2024 まで 2 2025