The Return Of The King Comes To Levi'S.

Levi Strauss & Co. (NYSE:LEVI) Levi's rose 6.5% after Tuesday's first quarterly return to the open market after us shares closed.

In the first quarter, the American cowboy manufacturer's income was in line with expectations, and it turned into a deficit. In the first three months ended February 24th, revenue rose 6.8% to $1 billion 435 million compared to the previous year, falling within the management expectation of 14.2-14.4 billion. After excluding the exchange rate effect, it rose to 11%, which directly increased to 10% of the sales of consumers. Retail store sales, store expansion and e-commerce all contributed to the growth, and the wholesale revenue increased by 5%.

Net profit was $146 million, compared with a net loss of $19 million due to tax and other reasons in the same period last year. EPS has improved from $-0.05 a year earlier to $0.37. Adjusted net profit was $151 million, up 81% annually. Gross margins fell slightly by 30 basis points to 54.6%.

Since the silent period of up to 12 listed Underwriters will not end until next week, there is no market forecast for the first quarter results of Levi Strauss & Co., and no analysts have asked questions on Tuesday's analyst conference call.

Levi Strauss & Co. (NYSE:LEVI) was closed at $21.88 on Tuesday, rising by 2.6% throughout the day. In March 21st, the stock landed on the NYSE at a price of $17 A share above the initial interval of $14-16, raising $623 million, and the stock soared 36.2% to $23.15 on that day. The group went public for the first time in 1971-1985.

Fixed exchange rates accounted for 10% growth in both America and Europe and 14% in Asia. Chief executive Chip Bergh said at a conference call that the group continued to make progress in key areas such as China. "In fact, China is the first market I visited after IPO. I just came back," he said. China's first quarter revenue increased by 5% over the previous year driven by self driven e-commerce. Chip Bergh pointed out that the local authorized business still needs time to improve. At present, China only accounts for Levi Strauss & Co. 3% revenue, that is, sales of about US $167 million last year.

The jackets continued to outperform 8% of the bottoms with a 28% increase, while men's and women's wear increased by 8% and 18% respectively. Chip Bergh says that the development of top 1 billion shirts is the key to Levi's s Levi's brand. According to the data of Euromonitor International euro europe, in 2018, Levi 's Levi's accounted for 5% of the world's jeans market. The market has been developing steadily in the past six years, but it is expected that the compound growth rate of 2% in the next five years will be recorded.

In the past year, the retail network of Levi Strauss & Co. opened and closed 115 stores and 41 stores respectively. As of February 24th, there were 832 outlets in the world. The target of this year's new store is 100, of which 16 stores have opened in the first quarter, and Europe and Asia will be the main destinations for expansion.

Management predicts that after the exchange rate is eliminated, annual Levi Strauss & Co. can achieve median revenue growth in fiscal year 2019, and adjusted EBIT margins will be flat in the 2018 fiscal year or slightly increase. The annual capital expenditure is estimated at 1.9-2.0 billion dollars.

Levi Strauss & Co. (NYSE:LEVI), which has surged 9.2% to 23.90 dollars early on Wednesday, is now valued at $8 billion 430 million. The descendants of the founder of the group's namesake - the Haas family sold more than 21 million shares in IPO and cash in the amount of $462 million. Now it still controls nearly 81% of the voting rights through B class shares.