– моментальные уведомления о рынке акций
– моментальные уведомления о рынке акций
REPORTED NET REVENUES OF $1.5B INCREASES 15%, UP 20% IN CONSTANT CURRENCY VS. Q2 2021
OPERATING INCOME WAS $76M; ADJUSTED EBIT WAS $145M, UP 27% VS. Q2 2021
DILUTED EPS WAS $0.12; ADJUSTED DILUTED EPS WAS $0.29, UP 26% VS. Q2 2021
REAFFIRMS ANNUAL GUIDANCE FOR REVENUE AND EPS, INCREASES QUARTERLY DIVIDEND BY 20%
SAN FRANCISCO--(BUSINESS WIRE)--Levi Strauss & Co. (NYSE: LEVI) today announced financial results for the second quarter ended May 29, 2022.
"Our second quarter results demonstrate the power of our strategy, which continues to support strong revenue growth and margin expansion," said Chip Bergh, president and chief executive officer of Levi Strauss & Co. "Our brands are resonating with consumers across geographies, channels and product categories. By continuing to advance our most impactful growth drivers - being brand-led, direct to consumer first and diversifying the portfolio, we are well-positioned to continue to drive growth and create significant value for all our stakeholders."
Financial Highlights for the Second-Quarter
"We delivered another solid quarter, growing reported net revenues 15% and adjusted EBIT 27%, while returning $80 million in capital to shareholders," said Harmit Singh, chief financial officer of Levi Strauss & Co. "Although the operating environment remains dynamic, the diversity of our business is providing the resilience and flexibility needed to drive solid financial results in fiscal year 2022, while progressing us on our path to achieve net revenues of $9 to $10 billion and adjusted EBIT margin of 15% by fiscal year 2027."
Highlights include: |
||||||||||||||||||
|
|
Three Months Ended |
|
Increase
|
|
Six Months Ended |
|
Increase
|
||||||||||
($ millions, except per-share amounts) |
|
May 29,
|
|
May 30,
|
|
|
May 29,
|
|
May 30,
|
|
||||||||
Net revenues |
|
$ |
1,471 |
|
$ |
1,276 |
|
15 |
% |
|
$ |
3,063 |
|
$ |
2,582 |
|
19 |
% |
Net income |
|
$ |
50 |
|
$ |
65 |
|
(23 |
) % |
|
$ |
246 |
|
$ |
207 |
|
19 |
% |
Adjusted net income |
|
$ |
117 |
|
$ |
93 |
|
25 |
% |
|
$ |
306 |
|
$ |
234 |
|
31 |
% |
Adjusted EBIT |
|
$ |
145 |
|
$ |
115 |
|
27 |
% |
|
$ |
383 |
|
$ |
289 |
|
33 |
% |
Diluted earnings per share(1) |
|
$ |
0.12 |
|
$ |
0.16 |
|
(4 |
) ¢ |
|
$ |
0.61 |
|
$ |
0.50 |
|
11 |
¢ |
Adjusted diluted earnings per share(1) |
|
$ |
0.29 |
|
$ |
0.23 |
|
6 |
¢ |
|
$ |
0.75 |
|
$ |
0.57 |
|
18 |
¢ |
(1) |
Note: per share increase compared to prior year displayed in cents |
Second-Quarter 2022 Details:
– DTC net revenues increased 16%, driven by company-operated stores. As a percentage of second quarter company net revenues, sales from DTC stores and e-commerce comprised 30% and 7%, respectively, for a total of 37%.
– Wholesale net revenues increased 15% reflecting strong demand for the Levi's® brand globally.
– The company’s global digital net revenues grew approximately 3% compared to the same period in the prior year and comprised approximately 20% of second quarter fiscal 2022 net revenues.
Additional information regarding Adjusted gross margin, Adjusted SG&A, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, Adjusted diluted earnings per share, as well as amounts presented on a constant-currency basis, all of which are non-GAAP financial measures, is provided at the end of this press release.
Second-Quarter Segment Overview
Reported net revenues and operating income for the quarter are set forth in the table below:
|
|
Net Revenues |
|
Operating Income(1) |
||||||||||||||
|
|
Three Months Ended |
|
% Increase |
|
Three Months Ended |
|
% Increase |
||||||||||
($ millions) |
|
May 29,
|
|
May 30,
|
|
|
May 29,
|
|
May 30,
|
|
||||||||
Americas |
|
$ |
776 |
|
$ |
661 |
|
17 |
% |
|
$ |
159 |
|
$ |
148 |
|
8 |
% |
Europe |
|
$ |
367 |
|
$ |
355 |
|
3 |
% |
|
$ |
67 |
|
$ |
59 |
|
12 |
% |
Asia |
|
$ |
222 |
|
$ |
192 |
|
16 |
% |
|
$ |
19 |
|
$ |
6 |
|
203 |
% |
Other Brands |
|
$ |
106 |
|
$ |
68 |
|
56 |
% |
|
$ |
4 |
|
$ |
2 |
|
66 |
% |
(1) |
Segment operating income is equal to segment Adjusted EBIT. |
Year-to-date 2022 Results are included in the company's Quarterly Report on Form 10-Q for the quarter ended May 29, 2022.
Balance Sheet Review as of May 29, 2022
Additional information regarding leverage ratio, which is a non-GAAP financial measure, is provided at the end of this press release.
Shareholder Returns
In the second quarter, the company returned approximately $80 million to shareholders, including:
In June 2022, the Board of Directors approved a $750 million share repurchase program with no expiration date.
The company declared a dividend of $0.12 per share totaling approximately $48 million, payable in Cash on August 17, 2022 to the holders of record of Class A common stock and Class B common stock at the close of business on August 1, 2022.
The company reaffirms expectations for fiscal 2022 and are as follows:
The company plans to share additional details during its investor conference call. The company's outlook assumes no significant worsening of the COVID-19 pandemic, inflationary pressures or further currency impacts.
Investor Conference Call
To access the conference call, please pre-register on https://register.vevent.com/register/BI6d429c80e9c1464b8c9cfd0a839f8968. Registrants will receive confirmation with dial-in details.
A live webcast of the event can be accessed on https://edge.media-server.com/mmc/p/jej85fp6. 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.
Please see http://www.levistrauss.com/investors/earnings-webcast for a discussion and reconciliation of non- GAAP measures referenced on the investor conference call.
About Levi Strauss & Co.
Levi Strauss & 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®, Dockers®, Signature by Levi Strauss & Co.™, Denizen® and Beyond Yoga® brands. Its products are sold in more than 110 countries worldwide through a combination of chain retailers, department stores, online sites, and a global footprint of approximately 3,200 brand-dedicated stores and shop-in-shops. Levi Strauss & Co.'s reported 2021 net revenues were $5.8 billion. For more information, go to http://levistrauss.com, and for company news and announcements go to http://investors.levistrauss.com.
Forward Looking Statements
This press release and related conference call contain, in addition to historical information, forward-looking statements, including statements related to: the continued impact of the COVID-19 pandemic on the company’s business; future financial results, including revenues, adjusted EBIT margins, return on invested capital levels, adjusted gross margins, adjusted SG&A, tax rate, and adjusted diluted EPS; capital expenditures; pricing initiatives; new store openings; inflationary pressures; global economic conditions; investments in high growth initiatives; future dividend payments; future share repurchases; future shareholder return; and efforts to diversify product categories, distribution channels and geographies, and the related revenue projections. The company has based these forward-looking statements on its current assumptions, expectations and projections about future events. Words such as, but not limited to, “believe,” “will,” “so we can,” “when,” “anticipate,” “intend,” “estimate,” “expect,” “project” 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 senior management and involve a number of risks and uncertainties 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 year 2021 and its Quarterly Report on Form 10-Q for the quarter ended May 29, 2022, especially in the “Management's Discussion and Analysis of Financial Condition and Results of Operations” 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 gross profit, Adjusted gross margin, Adjusted SG&A, 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), constant-currency net revenues, net debt, leverage ratio, 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 gross profit, Adjusted gross margin, Adjusted SG&A, 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 net income margin (both reported and on a constant-currency basis), Adjusted diluted earnings per share (both reported and on a constant-currency basis), constant-currency net revenues, net debt, leverage ratio, 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.
Constant-currency
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 exchange rate fluctuations.
The company believes disclosure of constant-currency results is 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, constant-currency results are non-GAAP financial measures and are not meant to be considered as an alternative or substitute for comparable measures prepared in accordance with GAAP. 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. 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.
The company calculates constant-currency amounts by translating local currency amounts in the prior-year period at actual foreign exchange rates for the current period. Constant-currency results do not eliminate the transaction currency impact, which primarily include 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. Additionally, gross margin is impacted by gains and losses related to the procurement of inventory, primarily products sourced in EUR and USD, by the company's global sourcing organization on behalf of its foreign subsidiaries.
Source: Levi Strauss & Co. Investor Relations
LEVI STRAUSS & CO. AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
|
(Unaudited) |
|
|
||||
|
May 29,
|
|
November 28,
|
||||
|
|
|
|
||||
|
(Dollars in thousands) |
||||||
ASSETS |
|||||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
601,870 |
|
|
$ |
810,266 |
|
Short-term investments in marketable securities |
|
96,396 |
|
|
|
91,550 |
|
Trade receivables, net |
|
609,180 |
|
|
|
707,625 |
|
Inventories |
|
1,112,835 |
|
|
|
897,950 |
|
Other current assets |
|
222,081 |
|
|
|
202,510 |
|
Total current assets |
|
2,642,362 |
|
|
|
2,709,901 |
|
Property, plant and equipment, net |
|
513,776 |
|
|
|
502,562 |
|
Goodwill |
|
368,162 |
|
|
|
386,880 |
|
Other intangible assets, net |
|
289,176 |
|
|
|
291,332 |
|
Deferred tax assets, net |
|
556,120 |
|
|
|
573,114 |
|
Operating lease right-of-use assets, net |
|
1,019,524 |
|
|
|
1,103,705 |
|
Other non-current assets |
|
348,637 |
|
|
|
332,575 |
|
Total assets |
$ |
5,737,757 |
|
|
$ |
5,900,069 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current Liabilities: |
|
|
|
||||
Accounts payable |
|
558,665 |
|
|
|
524,838 |
|
Accrued salaries, wages and employee benefits |
|
221,815 |
|
|
|
274,700 |
|
Accrued sales returns and allowances |
|
188,467 |
|
|
|
209,364 |
|
Short-term operating lease liabilities |
|
243,841 |
|
|
|
245,369 |
|
Other accrued liabilities |
|
517,826 |
|
|
|
615,347 |
|
Total current liabilities |
|
1,730,614 |
|
|
|
1,869,618 |
|
Long-term debt |
|
998,484 |
|
|
|
1,020,700 |
|
Postretirement medical benefits |
|
47,033 |
|
|
|
51,439 |
|
Pension liabilities |
|
151,105 |
|
|
|
155,218 |
|
Long-term employee related benefits |
|
104,802 |
|
|
|
108,544 |
|
Long-term operating lease liabilities |
|
925,049 |
|
|
|
969,482 |
|
Other long-term liabilities |
|
52,338 |
|
|
|
59,407 |
|
Total liabilities |
|
4,009,425 |
|
|
|
4,234,408 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders’ Equity: |
|
|
|
||||
Common stock — $0.001 par value; 1,200,000,000 Class A shares authorized, 98,326,863 shares and 97,567,627 shares issued and outstanding as of May 29, 2022 and November 28, 2021, respectively; and 422,000,000 Class B shares authorized, 298,351,504 shares and 302,209,813 shares issued and outstanding, as of May 29, 2022 and November 28, 2021, respectively |
|
397 |
|
|
|
400 |
|
Additional paid-in capital |
|
592,827 |
|
|
|
584,774 |
|
Accumulated other comprehensive loss |
|
(394,182 |
) |
|
|
(394,387 |
) |
Retained earnings |
|
1,529,290 |
|
|
|
1,474,874 |
|
Total stockholders’ equity |
|
1,728,332 |
|
|
|
1,665,661 |
|
Total liabilities and stockholders’ equity |
$ |
5,737,757 |
|
|
$ |
5,900,069 |
|
The notes accompanying the consolidated financial statements in the company's Form 10-Q for the second quarter of fiscal 2022 are an integral part of these consolidated financial statements. |
LEVI STRAUSS & CO. AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in thousands, except per share amounts) (Unaudited) |
||||||||||||||
Net revenues |
$ |
1,471,149 |
|
|
$ |
1,275,971 |
|
|
$ |
3,062,711 |
|
|
$ |
2,581,573 |
|
Cost of goods sold |
|
616,126 |
|
|
|
525,770 |
|
|
|
1,264,080 |
|
|
|
1,071,343 |
|
Gross profit |
|
855,023 |
|
|
|
750,201 |
|
|
|
1,798,631 |
|
|
|
1,510,230 |
|
Selling, general and administrative expenses |
|
778,857 |
|
|
|
643,746 |
|
|
|
1,488,233 |
|
|
|
1,226,652 |
|
Operating income |
|
76,166 |
|
|
|
106,455 |
|
|
|
310,398 |
|
|
|
283,578 |
|
Interest expense |
|
(4,360 |
) |
|
|
(19,933 |
) |
|
|
(8,608 |
) |
|
|
(43,243 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
(30,108 |
) |
|
|
— |
|
|
|
(30,338 |
) |
Other income (expense), net |
|
6,004 |
|
|
|
(715 |
) |
|
|
21,901 |
|
|
|
373 |
|
Income before income taxes |
|
77,810 |
|
|
|
55,699 |
|
|
|
323,691 |
|
|
|
210,370 |
|
Income tax expense (benefit) |
|
28,068 |
|
|
|
(9,020 |
) |
|
|
78,106 |
|
|
|
3,147 |
|
Net income |
$ |
49,742 |
|
|
$ |
64,719 |
|
|
$ |
245,585 |
|
|
$ |
207,223 |
|
Earnings per common share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.13 |
|
|
$ |
0.16 |
|
|
$ |
0.62 |
|
|
$ |
0.52 |
|
Diluted |
$ |
0.12 |
|
|
$ |
0.16 |
|
|
$ |
0.61 |
|
|
$ |
0.50 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
397,882,576 |
|
|
|
401,964,569 |
|
|
|
398,650,665 |
|
|
|
400,771,248 |
|
Diluted |
|
403,782,416 |
|
|
|
412,102,841 |
|
|
|
405,852,351 |
|
|
|
410,644,463 |
|
The notes accompanying the consolidated financial statements in the company's Form 10-Q for the second quarter of fiscal 2022 are an integral part of these consolidated financial statements. |
LEVI STRAUSS & CO. AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in thousands) (Unaudited) |
||||||||||||||
Net income |
$ |
49,742 |
|
|
$ |
64,719 |
|
|
$ |
245,585 |
|
|
$ |
207,223 |
|
Other comprehensive income (loss), before related income taxes: |
|
|
|
|
|
|
|
||||||||
Pension and postretirement benefits |
|
2,041 |
|
|
|
2,743 |
|
|
|
4,226 |
|
|
|
5,681 |
|
Derivative instruments |
|
34,030 |
|
|
|
4,579 |
|
|
|
29,862 |
|
|
|
(12,736 |
) |
Foreign currency translation (losses) gains |
|
(14,049 |
) |
|
|
4,418 |
|
|
|
(25,138 |
) |
|
|
15,359 |
|
Unrealized (losses) gains on marketable securities |
|
(4,415 |
) |
|
|
4,034 |
|
|
|
(10,409 |
) |
|
|
4,435 |
|
Total other comprehensive income (loss), before related income taxes |
|
17,607 |
|
|
|
15,774 |
|
|
|
(1,459 |
) |
|
|
12,739 |
|
Income tax (benefit) expense related to items of other comprehensive income (loss) |
|
(415 |
) |
|
|
(3,987 |
) |
|
|
1,664 |
|
|
|
(2,784 |
) |
Comprehensive income, net of income taxes |
$ |
66,934 |
|
|
$ |
76,506 |
|
|
$ |
245,790 |
|
|
$ |
217,178 |
|
The notes accompanying the consolidated financial statements in the company's Form 10-Q for the second quarter of fiscal 2022 are an integral part of these consolidated financial statements. |
LEVI STRAUSS & CO. AND SUBSIDIARIES |
|||||||||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY |
|||||||||||||||||||
|
Three Months Ended May 29, 2022 |
||||||||||||||||||
|
Class A & Class B Common Stock |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Accumulated Other Comprehensive Loss |
|
Total Stockholders' Equity |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Dollars in thousands) (Unaudited) |
||||||||||||||||||
Balance at February 27, 2022 |
$ |
399 |
|
|
$ |
575,310 |
|
|
$ |
1,559,254 |
|
|
$ |
(411,374 |
) |
|
$ |
1,723,589 |
|
Net income |
|
— |
|
|
|
— |
|
|
|
49,742 |
|
|
|
— |
|
|
|
49,742 |
|
Other comprehensive loss, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,192 |
|
|
|
17,192 |
|
Stock-based compensation and dividends, net |
|
— |
|
|
|
16,653 |
|
|
|
— |
|
|
|
— |
|
|
|
16,653 |
|
Employee stock purchase plan |
|
— |
|
|
|
2,200 |
|
|
|
— |
|
|
|
— |
|
|
|
2,200 |
|
Repurchase of common stock |
|
(2 |
) |
|
|
— |
|
|
|
(40,038 |
) |
|
|
— |
|
|
|
(40,040 |
) |
Tax withholdings on equity awards |
|
— |
|
|
|
(1,336 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,336 |
) |
Cash dividends declared ($0.10 per share) |
|
— |
|
|
|
— |
|
|
|
(39,668 |
) |
|
|
— |
|
|
|
(39,668 |
) |
Balance at May 29, 2022 |
$ |
397 |
|
|
$ |
592,827 |
|
|
$ |
1,529,290 |
|
|
$ |
(394,182 |
) |
|
$ |
1,728,332 |
|
|
Six Months Ended May 29, 2022 |
||||||||||||||||||
|
Class A & Class B Common Stock |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Accumulated Other Comprehensive Loss |
|
Total Stockholders' Equity |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Dollars in thousands) (Unaudited) |
||||||||||||||||||
Balance at November 28, 2021 |
$ |
400 |
|
|
$ |
584,774 |
|
|
$ |
1,474,874 |
|
|
$ |
(394,387 |
) |
|
$ |
1,665,661 |
|
Net income |
|
— |
|
|
|
— |
|
|
|
245,585 |
|
|
|
— |
|
|
|
245,585 |
|
Other comprehensive loss, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
205 |
|
|
|
205 |
|
Stock-based compensation and dividends, net |
|
2 |
|
|
|
30,741 |
|
|
|
— |
|
|
|
— |
|
|
|
30,743 |
|
Employee stock purchase plan |
|
— |
|
|
|
4,473 |
|
|
|
— |
|
|
|
— |
|
|
|
4,473 |
|
Repurchase of common stock |
|
(5 |
) |
|
|
— |
|
|
|
(111,637 |
) |
|
|
— |
|
|
|
(111,642 |
) |
Tax withholdings on equity awards |
|
— |
|
|
|
(27,161 |
) |
|
|
— |
|
|
|
— |
|
|
|
(27,161 |
) |
Cash dividends declared ($0.20 per share) |
|
— |
|
|
|
— |
|
|
|
(79,532 |
) |
|
|
— |
|
|
|
(79,532 |
) |
Balance at May 29, 2022 |
$ |
397 |
|
|
$ |
592,827 |
|
|
$ |
1,529,290 |
|
|
$ |
(394,182 |
) |
|
$ |
1,728,332 |
|
|
Three Months Ended May 30, 2021 |
|||||||||||||||||
|
Class A & Class B Common Stock |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Accumulated Other Comprehensive Loss |
|
Total Stockholders' Equity |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
(Dollars in thousands) (Unaudited) |
|||||||||||||||||
Balance at February 28, 2021 |
$ |
400 |
|
$ |
609,068 |
|
|
$ |
1,240,792 |
|
|
$ |
(443,276 |
) |
|
$ |
1,406,984 |
|
Net Income |
|
— |
|
|
— |
|
|
|
64,719 |
|
|
|
— |
|
|
|
64,719 |
|
Other comprehensive loss, net of tax |
|
— |
|
|
— |
|
|
|
— |
|
|
|
11,787 |
|
|
|
11,787 |
|
Stock-based compensation and dividends, net |
|
2 |
|
|
23,384 |
|
|
|
— |
|
|
|
— |
|
|
|
23,386 |
|
Employee stock purchase plan |
|
— |
|
|
1,792 |
|
|
|
— |
|
|
|
— |
|
|
|
1,792 |
|
Tax withholdings on equity awards |
|
— |
|
|
(50,542 |
) |
|
|
— |
|
|
|
— |
|
|
|
(50,542 |
) |
Cash dividends declared ($0.06 per share) |
|
— |
|
|
— |
|
|
|
(24,104 |
) |
|
|
— |
|
|
|
(24,104 |
) |
Balance at May 30, 2021 |
$ |
402 |
|
$ |
583,702 |
|
|
$ |
1,281,407 |
|
|
$ |
(431,489 |
) |
|
$ |
1,434,022 |
|
|
Six Months Ended May 30, 2021 |
|||||||||||||||||
|
Class A & Class B Common Stock |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Accumulated Other Comprehensive Loss |
|
Total Stockholders' Equity |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
(Dollars in thousands) (Unaudited) |
|||||||||||||||||
Balance at November 29, 2020 |
$ |
398 |
|
$ |
626,243 |
|
|
$ |
1,114,280 |
|
|
$ |
(441,446 |
) |
|
$ |
1,299,475 |
|
Net Income |
|
— |
|
|
— |
|
|
|
207,223 |
|
|
|
— |
|
|
|
207,223 |
|
Other comprehensive loss, net of tax |
|
— |
|
|
— |
|
|
|
— |
|
|
|
9,957 |
|
|
|
9,957 |
|
Stock-based compensation and dividends, net |
|
4 |
|
|
30,098 |
|
|
|
— |
|
|
|
— |
|
|
|
30,102 |
|
Employee stock purchase plan |
|
— |
|
|
3,721 |
|
|
|
— |
|
|
|
— |
|
|
|
3,721 |
|
Tax withholdings on equity awards |
|
— |
|
|
(76,360 |
) |
|
|
— |
|
|
|
— |
|
|
|
(76,360 |
) |
Cash dividends declared ($0.10 per share) |
|
— |
|
|
— |
|
|
|
(40,096 |
) |
|
|
— |
|
|
|
(40,096 |
) |
Balance at May 30, 2021 |
$ |
402 |
|
$ |
583,702 |
|
|
$ |
1,281,407 |
|
|
$ |
(431,489 |
) |
|
$ |
1,434,022 |
|
The notes accompanying the consolidated financial statements in the company's Form 10-Q for the second quarter of fiscal 2022 are an integral part of these consolidated financial statements. |
LEVI STRAUSS & CO. AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
Six Months Ended |
||||||
|
May 29,
|
|
May 30,
|
||||
|
|
|
|
||||
|
(Dollars in thousands) (Unaudited) |
||||||
Cash Flows from Operating Activities: |
|
|
|
||||
Net income |
$ |
245,585 |
|
|
$ |
207,223 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
77,740 |
|
|
|
69,926 |
|
Property, plant, equipment, right-of-use asset, and goodwill impairments |
|
54,733 |
|
|
|
5,147 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
30,338 |
|
Stock-based compensation |
|
30,743 |
|
|
|
30,102 |
|
Provision for (benefit from) deferred income taxes |
|
17,435 |
|
|
|
(46,857 |
) |
Other, net |
|
9,847 |
|
|
|
9,392 |
|
Net change in operating assets and liabilities |
|
(290,201 |
) |
|
|
(57,253 |
) |
Net cash provided by operating activities |
|
145,882 |
|
|
|
248,018 |
|
Cash Flows from Investing Activities: |
|
|
|
||||
Purchases of property, plant and equipment |
|
(120,507 |
) |
|
|
(67,501 |
) |
Payments on settlement of forward foreign exchange contracts not designated for hedge accounting |
|
(9,089 |
) |
|
|
(4,349 |
) |
Payments to acquire short-term investments |
|
(44,589 |
) |
|
|
(55,124 |
) |
Proceeds from sale, maturity and collection of short-term investments |
|
39,027 |
|
|
|
56,530 |
|
Net cash used for investing activities |
|
(135,158 |
) |
|
|
(70,444 |
) |
Cash Flows from Financing Activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, net of issuance costs |
|
— |
|
|
|
489,554 |
|
Repayments of long-term debt including debt extinguishment costs |
|
— |
|
|
|
(820,000 |
) |
Other short-term borrowings, net |
|
213 |
|
|
|
(8,502 |
) |
Repurchase of common stock |
|
(114,232 |
) |
|
|
— |
|
Tax withholdings on equity awards |
|
(27,161 |
) |
|
|
(76,360 |
) |
Dividend to stockholders |
|
(79,532 |
) |
|
|
(40,097 |
) |
Other financing activities, net |
|
3,563 |
|
|
|
2,267 |
|
Net cash used for financing activities |
|
(217,149 |
) |
|
|
(453,138 |
) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
(1,939 |
) |
|
|
2,500 |
|
Net decrease in cash and cash equivalents and restricted cash |
|
(208,364 |
) |
|
|
(273,064 |
) |
Beginning cash and cash equivalents, and restricted cash |
|
810,580 |
|
|
|
1,497,648 |
|
Ending cash and cash equivalents, and restricted cash |
|
602,216 |
|
|
|
1,224,584 |
|
Less: Ending restricted cash |
|
(346 |
) |
|
|
(504 |
) |
Ending cash and cash equivalents |
$ |
601,870 |
|
|
$ |
1,224,080 |
|
|
|
|
|
||||
Noncash Investing and Financing Activity: |
|
|
|
||||
Property, plant and equipment acquired and not yet paid at end of period |
$ |
47,211 |
|
|
$ |
29,579 |
|
Supplemental disclosure of cash flow information: |
|
|
|
||||
Cash paid for interest during the period |
$ |
18,947 |
|
|
$ |
29,926 |
|
Cash paid for income taxes during the period, net of refunds |
|
56,776 |
|
|
|
30,750 |
|
The notes accompanying the consolidated financial statements in the company's Form 10-Q for the second quarter of fiscal 2022 are an integral part of these consolidated financial statements. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
FOR THE SECOND QUARTER OF 2022
The following information relates to non-GAAP financial measures and should be read in conjunction with the investor call held on July 7, 2022, discussing the company’s financial condition and results of operations as of and for the quarter ended May 29, 2022. Adjusted gross profit, Adjusted gross margin, Adjusted SG&A, Adjusted EBIT, Adjusted EBIT margin, Adjusted net income, Adjusted diluted earnings per share, net debt, Adjusted free cash flow, constant-currency net revenues, constant-currency Adjusted EBIT and leverage ratio are not financial measures prepared in accordance with GAAP. As used in this press release: (1) Adjusted gross profit, represents gross profit excluding COVID-19 related inventory costs and acquisition related charges and Adjusted gross margin, represents Adjusted gross profit as a percentage of net revenues; (2) Adjusted SG&A represents SG&A less charges related to changes in fair value on cash-settled stock-based compensation, COVID-19 related charges, acquisition and integration related charges, impairment charges, and restructuring and restructuring related charges, severance and other, net; (3) Adjusted EBIT represents net income excluding income tax expense (benefit), interest expense, other (income) expense, net, loss on early extinguishment of debt, impact of changes in fair value on cash-settled stock-based compensation, COVID-19 related inventory costs and other charges, acquisition and integration related charges, impairment charges, and restructuring and restructuring related charges, severance and other, net, and Adjusted EBIT margin as Adjusted EBIT as a percentage of net revenues; (4) Adjusted EBITDA represents Adjusted EBIT excluding depreciation and amortization expense; (5) Adjusted net income represents net income excluding charges related to the impact of changes in fair value on cash-settled stock-based compensation, loss on early extinguishment of debt, COVID-19 related inventory costs and other charges, net with a COVID-19 government subsidy gain, acquisition and integration related charges, impairment charges, and restructuring and restructuring related charges, severance and other, net, and tax impact of adjustments and Adjusted net income margin as Adjusted net income as a percentage of net revenues; (6) Adjusted diluted earnings per share represents Adjusted net income per weighted-average number of diluted common shares; (7) net debt represents total debt, excluding finance leases, less cash and cash equivalents and short-term investments in marketable securities; (8) leverage ratio represents total debt, excluding finance leases, divided by the last twelve months of Adjusted EBITDA; (9) Adjusted free cash flow represents cash from operating activities less purchases of property, plant and equipment; (10) return on invested capital represents the trailing four quarters of earnings before interest and after taxes (Adjusted net income plus interest expense and income tax expense less an income tax adjustment) divided by the average trailing five quarters of total invested capital (total debt plus shareholders' equity less cash and short-term investments); (11) constant-currency net revenues represents net revenues without the impact of foreign currency exchange rate fluctuations; (12) constant-currency Adjusted EBIT represents Adjusted EBIT without the impact of foreign currency exchange rate fluctuations; (13) constant-currency Adjusted net income represents Adjusted net income without the impact of foreign currency exchange rate fluctuations; and (14) constant-currency Adjusted diluted earnings per share represents Adjusted diluted earnings per share without the impact of foreign currency exchange rate fluctuations.
Adjusted Gross Profit: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in millions) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
Most comparable GAAP measure: |
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
855.0 |
|
|
$ |
750.2 |
|
|
$ |
1,798.6 |
|
|
$ |
1,510.2 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP measure: |
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
855.0 |
|
|
$ |
750.2 |
|
|
$ |
1,798.6 |
|
|
$ |
1,510.2 |
|
COVID-19 related inventory costs(1) |
|
1.4 |
|
|
|
(7.2 |
) |
|
|
1.4 |
|
|
|
(14.4 |
) |
Acquisition related charges(2) |
|
— |
|
|
|
— |
|
|
|
2.0 |
|
|
|
— |
|
Adjusted gross profit |
$ |
856.4 |
|
|
$ |
743.0 |
|
|
$ |
1,802.0 |
|
|
$ |
1,495.8 |
|
Adjusted gross margin |
|
58.2 |
% |
|
|
58.2 |
% |
|
|
58.8 |
% |
|
|
57.9 |
% |
| _____________ | ||
(1) |
For the three-month and six-month periods ended May 30, 2021, the reductions in COVID-19 related inventory charges is primarily related to reductions in our estimate of adverse fabric purchase commitments, initially recorded in the second quarter of 2020. |
|
(2) |
Acquisition related charges include the inventory markup above historical carrying value associated with the Beyond Yoga acquisition. |
|
Adjusted SG&A: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in millions) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
Most comparable GAAP measure: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
$ |
778.8 |
|
|
$ |
643.7 |
|
|
$ |
1,488.2 |
|
|
$ |
1,226.6 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP measure: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
$ |
778.8 |
|
|
$ |
643.7 |
|
|
$ |
1,488.2 |
|
|
$ |
1,226.6 |
|
Impact of changes in fair value on cash-settled stock-based compensation |
|
— |
|
|
|
(1.6 |
) |
|
|
(0.6 |
) |
|
|
(2.5 |
) |
COVID-19 related charges(1) |
|
(3.9 |
) |
|
|
10.0 |
|
|
|
(3.9 |
) |
|
|
6.9 |
|
Acquisition and integration related charges |
|
(1.1 |
) |
|
|
— |
|
|
|
(3.1 |
) |
|
|
— |
|
Impairment charges(2) |
|
(51.1 |
) |
|
|
— |
|
|
|
(51.1 |
) |
|
|
— |
|
Restructuring and restructuring related charges, severance and other, net(3) |
|
(11.7 |
) |
|
|
(23.7 |
) |
|
|
(10.7 |
) |
|
|
(23.8 |
) |
Adjusted SG&A |
$ |
711.0 |
|
|
$ |
628.4 |
|
|
$ |
1,418.8 |
|
|
$ |
1,207.2 |
|
| _____________ | ||
(1) |
For the three-month and six-month periods ended May 30, 2021, the net reduction in COVID-19 related charges is primarily reductions in allowances related to customer receivables. |
|
(2) |
For the three-month and six-month periods ended May 29, 2022, impairment charges include $4.1 million of property, plant and equipment, $11.6 million of goodwill and $35.4 million of certain store right-of-use assets related to the Russia-Ukraine crisis. |
|
(3) |
For the three-month and six-month periods ended May 29, 2022, restructuring and restructuring related charges, severance and other, net includes $9.3 million of charges related to the Russia-Ukraine crisis. Other, net includes transaction and deal related costs. |
|
| Adjusted EBIT and Adjusted EBITDA: | |||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(Dollars in millions) |
||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||
Most comparable GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
$ |
49.7 |
|
|
$ |
64.7 |
|
|
$ |
245.6 |
|
|
$ |
207.2 |
|
|
$ |
591.9 |
|
|
$ |
291.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
$ |
49.7 |
|
|
$ |
64.7 |
|
|
$ |
245.6 |
|
|
$ |
207.2 |
|
|
$ |
591.9 |
|
|
$ |
291.0 |
|
Income tax expense (benefit) |
|
28.1 |
|
|
|
(9.0 |
) |
|
|
78.1 |
|
|
|
3.2 |
|
|
|
101.6 |
|
|
|
23.1 |
|
Interest expense |
|
4.4 |
|
|
|
19.9 |
|
|
|
8.6 |
|
|
|
43.2 |
|
|
|
38.3 |
|
|
|
97.5 |
|
Other (income) expense, net |
|
(6.0 |
) |
|
|
0.8 |
|
|
|
(21.9 |
) |
|
|
(0.3 |
) |
|
|
(25.0 |
) |
|
|
26.1 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
30.1 |
|
|
|
— |
|
|
|
30.3 |
|
|
|
6.2 |
|
|
|
30.3 |
|
Impact of changes in fair value on cash-settled stock-based compensation(1) |
|
— |
|
|
|
1.6 |
|
|
|
0.6 |
|
|
|
2.5 |
|
|
|
2.3 |
|
|
|
5.4 |
|
COVID-19 related inventory costs and other charges(2) |
|
5.3 |
|
|
|
(17.2 |
) |
|
|
5.3 |
|
|
|
(21.3 |
) |
|
|
16.9 |
|
|
|
(36.3 |
) |
Acquisition and integration related charges(3) |
|
1.1 |
|
|
|
— |
|
|
|
5.1 |
|
|
|
— |
|
|
|
12.8 |
|
|
|
— |
|
Impairment charges(4) |
|
51.1 |
|
|
|
— |
|
|
|
51.1 |
|
|
|
— |
|
|
|
51.1 |
|
|
|
— |
|
Restructuring and restructuring related charges, severance and other, net(5) |
|
11.7 |
|
|
|
23.7 |
|
|
|
10.7 |
|
|
|
23.8 |
|
|
|
11.4 |
|
|
|
49.2 |
|
Adjusted EBIT |
$ |
145.4 |
|
|
$ |
114.6 |
|
|
$ |
383.2 |
|
|
$ |
288.6 |
|
|
$ |
807.5 |
|
|
$ |
486.3 |
|
Depreciation and amortization(6) |
|
37.6 |
|
|
|
34.4 |
|
|
|
75.5 |
|
|
|
69.7 |
|
|
|
147.8 |
|
|
|
137.9 |
|
Adjusted EBITDA |
$ |
183.0 |
|
|
$ |
149.0 |
|
|
$ |
458.7 |
|
|
$ |
358.3 |
|
|
$ |
955.3 |
|
|
$ |
624.2 |
|
Adjusted EBIT margin |
|
9.9 |
% |
|
|
9.0 |
% |
|
|
12.5 |
% |
|
|
11.2 |
% |
|
|
|
|
||||
| _____________ | ||
(1) |
Includes the impact of changes in fair value of Class B common stock following the grant date on awards that were granted as cash-settled and subsequently replaced with stock-settled awards concurrent with the IPO. |
|
(2) |
For the three-month and six-month periods ended May 30, 2021, the net reduction in COVID-19 related inventory costs and other charges mainly represents reductions in COVID-19 related inventory charges, as a result of reductions in our estimate of adverse fabric purchase commitments, the recoveries of receivables previously estimated to be not collectible, partially offset by incremental impairment costs in response to the global pandemic. |
|
(3) |
Acquisition and integration related charges includes the inventory markup above historical carrying value, as well as SG&A expenses associated with the Beyond Yoga acquisition. |
|
(4) |
For the three-month and six-month periods ended May 29, 2022, impairment charges include $4.1 million of property, plant and equipment, $11.6 million of goodwill and $35.4 million of certain store right-of-use assets as a result of the Russia-Ukraine crisis. |
|
(5) |
For the three-month and six-month periods ended May 29, 2022, restructuring and restructuring related charges, severance and other, net includes $9.3 million of charges related to the Russia-Ukraine crisis. Other, net includes transaction and deal related costs. |
|
(6) |
Depreciation and amortization amount net of amortization included in Restructuring and restructuring related charges, severance and other, net. |
|
Adjusted Net Income and Adjusted Diluted Earnings per Share: |
|||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(Dollars in millions, except per share amounts) |
||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||
Most comparable GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
$ |
49.7 |
|
|
$ |
64.7 |
|
|
$ |
245.6 |
|
|
$ |
207.2 |
|
|
$ |
591.9 |
|
|
$ |
291.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
$ |
49.7 |
|
|
$ |
64.7 |
|
|
$ |
245.6 |
|
|
$ |
207.2 |
|
|
$ |
591.9 |
|
|
$ |
291.0 |
|
Impact of changes in fair value on cash-settled stock-based compensation(1) |
|
— |
|
|
|
1.6 |
|
|
|
0.6 |
|
|
|
2.5 |
|
|
|
2.3 |
|
|
|
5.4 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
30.1 |
|
|
|
— |
|
|
|
30.3 |
|
|
|
6.2 |
|
|
|
30.3 |
|
COVID-19 related inventory costs and other charges, net(2) |
|
5.3 |
|
|
|
(17.2 |
) |
|
|
(7.2 |
) |
|
|
(21.3 |
) |
|
|
4.4 |
|
|
|
(36.3 |
) |
Acquisition and integration related costs(3) |
|
1.1 |
|
|
|
— |
|
|
|
5.1 |
|
|
|
— |
|
|
|
12.8 |
|
|
|
— |
|
Impairment charges(4) |
|
51.1 |
|
|
|
— |
|
|
|
51.1 |
|
|
|
— |
|
|
|
51.1 |
|
|
|
— |
|
Restructuring and restructuring related charges, severance and other, net(5) |
|
11.7 |
|
|
|
23.7 |
|
|
|
10.7 |
|
|
|
23.8 |
|
|
|
11.4 |
|
|
|
49.2 |
|
Pension settlement losses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14.7 |
|
Tax impact of adjustments(6) |
|
(2.2 |
) |
|
|
(9.5 |
) |
|
|
— |
|
|
|
(8.8 |
) |
|
|
(7.0 |
) |
|
|
(7.9 |
) |
Adjusted net income |
$ |
116.7 |
|
|
$ |
93.4 |
|
|
$ |
305.9 |
|
|
$ |
233.7 |
|
|
$ |
673.1 |
|
|
$ |
346.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted net income margin |
|
7.9 |
% |
|
|
7.3 |
% |
|
|
10.0 |
% |
|
|
9.1 |
% |
|
|
|
|
||||
Adjusted diluted earnings per share |
$ |
0.29 |
|
|
$ |
0.23 |
|
|
$ |
0.75 |
|
|
$ |
0.57 |
|
|
|
|
|
||||
| _____________ | ||
(1) |
Includes the impact of changes in fair value of Class B common stock following the grant date on awards that were granted as cash-settled and subsequently replaced with stock-settled awards concurrent with the IPO. |
|
(2) |
For the three-month and six-month periods ended May 29, 2022, the net reduction primarily reflects a payment received from the German government as reimbursement for COVID-19 losses incurred in prior years. |
|
For the three-month and six-month periods ended May 30, 2021, the net reduction in COVID-19 related inventory costs and other charges recognized mainly represents reductions in COVID-19 related inventory charges, as a result of reductions in our estimate of adverse fabric purchase commitments, the recoveries of receivables previously estimated to be not collectible, partially offset by incremental impairment costs in response to the global pandemic. |
||
(3) |
Acquisition and integration related charges includes the inventory markup above historical carrying value, as well as SG&A expenses associated with the Beyond Yoga acquisition. |
|
(4) |
For the three-month and six-month periods ended May 29, 2022, impairment charges include $4.1 million of property, plant and equipment, $11.6 million of goodwill and $35.4 million of certain store right-of-use assets as a result of the Russia-Ukraine crisis. |
|
(5) |
For the three-month and six-month periods ended May 29, 2022, restructuring and restructuring related charges, severance and other, net includes $9.3 million of charges related to the Russia-Ukraine crisis. Other charges included are transaction and deal related costs. |
|
(6) |
Tax impact calculated using the annual effective tax rate, excluding discrete costs and benefits. Charges associated with the Russia-Ukraine crisis are non-deductible and therefore have not been tax effected. |
|
Net Debt and Leverage Ratio: |
|||||||
|
May 29,
|
|
November 28,
|
||||
|
|
|
|
||||
|
(Dollars in millions) |
||||||
|
(Unaudited) |
|
|
||||
Most comparable GAAP measure: |
|
|
|
||||
Total debt, excluding finance leases |
$ |
1,004.4 |
|
|
$ |
1,026.6 |
|
|
|
|
|
||||
Non-GAAP measure: |
|
|
|
||||
Total debt, excluding finance leases |
$ |
1,004.4 |
|
|
$ |
1,026.6 |
|
Cash and cash equivalents |
|
(601.9 |
) |
|
|
(810.3 |
) |
Short-term investments in marketable securities |
|
(96.4 |
) |
|
|
(91.5 |
) |
Net debt |
$ |
306.1 |
|
|
$ |
124.8 |
|
|
May 29,
|
|
May 30,
|
||
|
|
|
|
||
|
(Dollars in millions) |
||||
|
(Unaudited) |
||||
Total debt, excluding finance leases |
$ |
1,004.4 |
|
$ |
1,273.1 |
Last Twelve Months Adjusted EBITDA(1) |
$ |
955.3 |
|
$ |
624.2 |
Leverage ratio |
|
1.1 |
|
|
2.0 |
| _____________ | ||
(1) |
Last Twelve Months Adjusted EBITDA is reconciled from net income which is the most comparable GAAP measure. Refer to Adjusted EBIT and Adjusted EBITDA table for more information. |
|
Adjusted Free Cash Flow:
Previously, we defined Adjusted free cash flow, a non-GAAP financial measure, as net cash flow from operating activities less purchases of property, plant and equipment, plus proceeds on settlement of forward foreign exchange contracts not designated for hedge accounting, less repurchases of common stock, tax withholdings on equity award exercises, and cash dividends to stockholders. Effective with the second quarter of 2022, the definition of Adjusted free cash flow is revised to include net cash flow from operating activities less purchases of property, plant and equipment. We believe this is a more representative measure of our free cash flow, assists in the comparability of results, and is consistent with how management reviews performance. The table below includes the recast of prior period results. Additionally, we will provide updated non-GAAP reconciliations under this revised definition in future reports for the relevant prior year periods.
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in millions) |
|
(Dollars in millions) |
||||||||||||
|
(Unaudited) |
|
(Unaudited) |
||||||||||||
Most comparable GAAP measure: |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
59.8 |
|
|
$ |
178.5 |
|
|
$ |
145.9 |
|
|
$ |
248.0 |
|
Net cash used for investing activities |
|
(57.0 |
) |
|
|
(35.5 |
) |
|
|
(135.2 |
) |
|
|
(70.4 |
) |
Net cash used for financing activities |
|
(77.7 |
) |
|
|
(892.8 |
) |
|
|
(217.1 |
) |
|
|
(453.1 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-GAAP measure: |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
59.8 |
|
|
$ |
178.5 |
|
|
$ |
145.9 |
|
|
$ |
248.0 |
|
Purchases of property, plant and equipment |
|
(46.9 |
) |
|
|
(30.5 |
) |
|
|
(120.5 |
) |
|
|
(67.5 |
) |
Adjusted free cash flow |
$ |
12.9 |
|
|
$ |
148.0 |
|
|
$ |
25.4 |
|
|
$ |
180.5 |
|
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 earnings before interest and after taxes as Adjusted net income plus interest expense and income tax expense less an income tax adjustment. 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 |
||||||
|
May 29,
|
|
May 30,
|
||||
|
|
|
|
||||
|
(Dollars in millions) |
||||||
Net income |
$ |
591.9 |
|
|
$ |
291.0 |
|
|
|
|
|
||||
Numerator |
|
|
|
||||
Adjusted net income(1) |
$ |
673.1 |
|
|
$ |
346.4 |
|
Interest expense |
|
38.3 |
|
|
|
97.5 |
|
Income tax expense |
|
101.6 |
|
|
|
23.1 |
|
Adjusted net income before interest and taxes |
|
813.0 |
|
|
|
467.0 |
|
Income tax adjustment(2) |
|
(118.1 |
) |
|
|
(31.2 |
) |
Adjusted net income before interest and after taxes |
$ |
694.9 |
|
|
$ |
435.8 |
|
| _____________ | ||
(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 trailing four quarters effective tax rate, excluding discrete costs and benefits. |
|
|
Average Trailing Five Quarters |
||||||
|
May 29,
|
|
May 30,
|
||||
|
|
|
|
||||
|
(Dollars in millions) |
||||||
Denominator |
|
|
|
||||
Total debt, including operating lease liabilities |
$ |
2,298.5 |
|
|
$ |
2,739.3 |
|
Shareholders' equity |
|
1,632.3 |
|
|
|
1,299.4 |
|
Cash and Short-term investments |
|
(1,033.6 |
) |
|
|
(1,586.0 |
) |
Total invested Capital |
$ |
2,897.2 |
|
|
$ |
2,452.7 |
|
|
|
|
|
||||
Net income to Total invested capital |
|
20.4 |
% |
|
|
11.9 |
% |
Return on Invested Capital |
|
24.0 |
% |
|
|
17.8 |
% |
Constant-Currency:
We calculate constant-currency amounts by translating local currency amounts in the comparison period at actual foreign exchange rates for the current period.
The table below sets forth the calculation of net revenues for each of our operating segments on a constant-currency basis for the prior-year comparison periods applicable to the three-month and six-month periods ended May 29, 2022:
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
May 29,
|
|
May 30,
|
|
% Increase |
|
May 29,
|
|
May 30,
|
|
% Increase |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in millions) |
||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||
Total net revenues |
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
$ |
1,471.1 |
|
$ |
1,276.0 |
|
|
15.3 |
% |
|
$ |
3,062.7 |
|
$ |
2,581.6 |
|
|
18.6 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
(47.3 |
) |
|
* |
|
|
— |
|
|
(85.6 |
) |
|
* |
||
Constant-currency net revenues |
$ |
1,471.1 |
|
$ |
1,228.7 |
|
|
19.7 |
% |
|
$ |
3,062.7 |
|
$ |
2,496.0 |
|
|
22.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Americas |
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
$ |
776.1 |
|
$ |
661.4 |
|
|
17.3 |
% |
|
$ |
1,541.9 |
|
$ |
1,267.6 |
|
|
21.6 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
(0.6 |
) |
|
* |
|
|
— |
|
|
(3.1 |
) |
|
* |
||
Constant-currency net revenues - Americas |
$ |
776.1 |
|
$ |
660.8 |
|
|
17.4 |
% |
|
$ |
1,541.9 |
|
$ |
1,264.5 |
|
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Europe |
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
$ |
367.1 |
|
$ |
354.9 |
|
|
3.4 |
% |
|
$ |
836.5 |
|
$ |
771.6 |
|
|
8.4 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
(36.1 |
) |
|
* |
|
|
— |
|
|
(64.0 |
) |
|
* |
||
Constant-currency net revenues - Europe |
$ |
367.1 |
|
$ |
318.8 |
|
|
15.1 |
% |
|
$ |
836.5 |
|
$ |
707.6 |
|
|
18.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Asia |
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
$ |
221.8 |
|
$ |
191.8 |
|
|
15.6 |
% |
|
$ |
480.3 |
|
$ |
424.7 |
|
|
13.1 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
(8.5 |
) |
|
* |
|
|
— |
|
|
(14.2 |
) |
|
* |
||
Constant-currency net revenues - Asia |
$ |
221.8 |
|
$ |
183.3 |
|
|
21.0 |
% |
|
$ |
480.3 |
|
$ |
410.5 |
|
|
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other Brands |
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
$ |
106.1 |
|
$ |
67.9 |
|
|
56.3 |
% |
|
$ |
204.0 |
|
$ |
117.7 |
|
|
73.3 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
(2.1 |
) |
|
* |
|
|
— |
|
|
(4.3 |
) |
|
* |
||
Constant-currency net revenues - Other Brands |
$ |
106.1 |
|
$ |
65.8 |
|
|
61.3 |
% |
|
$ |
204.0 |
|
$ |
113.4 |
|
|
79.9 |
% |
| _____________ | ||
* |
Not meaningful |
|
Constant-Currency Adjusted EBIT: |
|||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
May 29,
|
|
May 30,
|
|
% Increase |
|
May 29,
|
|
May 30,
|
|
% Increase |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Dollars in millions) |
||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||
Adjusted EBIT(1) |
$ |
145.4 |
|
|
$ |
114.6 |
|
|
26.9 |
% |
|
$ |
383.2 |
|
|
$ |
288.6 |
|
|
32.8 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
|
(8.2 |
) |
|
* |
|
|
— |
|
|
|
(18.0 |
) |
|
* |
||
Constant-currency Adjusted EBIT |
$ |
145.4 |
|
|
$ |
106.4 |
|
|
36.7 |
% |
|
$ |
383.2 |
|
|
$ |
270.6 |
|
|
41.6 |
% |
Constant-currency Adjusted EBIT margin(2) |
|
9.9 |
% |
|
|
8.7 |
% |
|
|
|
|
12.5 |
% |
|
|
10.8 |
% |
|
|
||
| _____________ | ||
(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: |
|||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
May 29,
|
|
May 30,
|
|
% Increase |
|
May 29,
|
|
May 30,
|
|
% Increase |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Dollars in millions, except per share amounts) |
||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||
Adjusted net income (1) |
$ |
116.7 |
|
|
$ |
93.4 |
|
|
24.9 |
% |
|
$ |
305.9 |
|
|
$ |
233.7 |
|
|
30.9 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
|
(7.9 |
) |
|
* |
|
|
— |
|
|
|
(16.0 |
) |
|
* |
||
Constant-currency Adjusted net income |
$ |
116.7 |
|
|
$ |
85.5 |
|
|
36.5 |
% |
|
$ |
305.9 |
|
|
$ |
217.7 |
|
|
40.5 |
% |
Constant-currency Adjusted net income margin(2) |
|
7.9 |
% |
|
|
7.0 |
% |
|
|
|
|
10.0 |
% |
|
|
8.7 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted diluted earnings per share |
$ |
0.29 |
|
|
$ |
0.23 |
|
|
26.1 |
% |
|
$ |
0.75 |
|
|
$ |
0.57 |
|
|
31.6 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
|
(0.02 |
) |
|
* |
|
|
— |
|
|
|
(0.04 |
) |
|
* |
||
Constant-currency Adjusted diluted earnings per share |
$ |
0.29 |
|
|
$ |
0.21 |
|
|
38.1 |
% |
|
$ |
0.75 |
|
|
$ |
0.53 |
|
|
41.5 |
% |
| _____________ | ||
(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 |
|
заявленная чистая выручка в размере $1,5 млрд увеличилась на 15%, что на 20% больше в постоянной валюте по сравнению со 2 кварталом 2021 года
операционная прибыль составила $76 млн; скорректированный показатель ebit составил $145 млн, что на 27% больше, чем во 2 квартале 2021 года
разводненная прибыль на акцию составила $0,12; скорректированная разводненная прибыль на акцию составила $0,29, что на 26% больше по сравнению со 2 кварталом 2021 года
подтверждает годовой прогноз по выручке и прибыли на акцию, увеличивает квартальные дивиденды на 20%
САН-ФРАНЦИСКО - (ДЕЛОВАЯ ТЕЛЕГРАММА) - Levi Strauss & Co. (NYSE: LEVI) сегодня объявила финансовые результаты за второй квартал, закончившийся 29 мая 2022 года.
"Наши результаты за второй квартал демонстрируют силу нашей стратегии, которая продолжает поддерживать значительный рост выручки и увеличение маржи", - сказал Чип Берг, президент и главный исполнительный директор Levi Strauss & Co. "Наши бренды находят отклик у потребителей во всех географических регионах, каналах и категориях продуктов. Продолжая развивать наши самые эффективные факторы роста - ориентируясь на бренд, ориентируясь в первую очередь на потребителя и диверсифицируя портфель, мы имеем хорошие возможности для дальнейшего стимулирования роста и создания значительной ценности для всех наших заинтересованных сторон".
Основные финансовые показатели за Второй квартал
"Мы провели еще один солидный квартал, увеличив чистую выручку на 15% и скорректированную EBIT на 27%, вернув акционерам капитал в размере 80 миллионов долларов", - сказал Хармит Сингх, финансовый директор Levi Strauss & Co. "Несмотря на то, что операционная среда остается динамичной, разнообразие нашего бизнеса обеспечивает устойчивость и гибкость, необходимые для достижения высоких финансовых результатов в 2022 финансовом году, одновременно продвигая нас на пути к достижению чистой выручки в размере от 9 до 10 миллиардов долларов и скорректированной рентабельности по EBIT на уровне 15% к 2027 финансовому году".
Highlights include: |
||||||||||||||||||
|
|
Three Months Ended |
|
Increase
|
|
Six Months Ended |
|
Increase
|
||||||||||
($ millions, except per-share amounts) |
|
May 29,
|
|
May 30,
|
|
|
May 29,
|
|
May 30,
|
|
||||||||
Net revenues |
|
$ |
1,471 |
|
$ |
1,276 |
|
15 |
% |
|
$ |
3,063 |
|
$ |
2,582 |
|
19 |
% |
Net income |
|
$ |
50 |
|
$ |
65 |
|
(23 |
) % |
|
$ |
246 |
|
$ |
207 |
|
19 |
% |
Adjusted net income |
|
$ |
117 |
|
$ |
93 |
|
25 |
% |
|
$ |
306 |
|
$ |
234 |
|
31 |
% |
Adjusted EBIT |
|
$ |
145 |
|
$ |
115 |
|
27 |
% |
|
$ |
383 |
|
$ |
289 |
|
33 |
% |
Diluted earnings per share(1) |
|
$ |
0.12 |
|
$ |
0.16 |
|
(4 |
) ¢ |
|
$ |
0.61 |
|
$ |
0.50 |
|
11 |
¢ |
Adjusted diluted earnings per share(1) |
|
$ |
0.29 |
|
$ |
0.23 |
|
6 |
¢ |
|
$ |
0.75 |
|
$ |
0.57 |
|
18 |
¢ |
(1) |
Note: per share increase compared to prior year displayed in cents |
Подробности о втором квартале 2022 года:
– Чистая выручка DTC увеличилась на 16% за счет магазинов, управляемых компанией. В процентах от чистой выручки компании во втором квартале продажи в магазинах DTC и электронной коммерции составили 30% и 7% соответственно, в общей сложности 37%.
– Чистая выручка от оптовой торговли увеличилась на 15%, что отражает высокий спрос на бренд Levi's® во всем мире.
– Глобальная чистая цифровая выручка компании выросла примерно на 3% по сравнению с аналогичным периодом предыдущего года и составила примерно 20% от чистой выручки во втором квартале 2022 финансового года.
Дополнительная информация о скорректированной валовой прибыли, Скорректированных SG&A, Скорректированном EBIT, Скорректированной рентабельности по EBIT, Скорректированной чистой прибыли, Скорректированной разводненной прибыли на акцию, а также суммах, представленных в постоянной валюте, все из которых не являются финансовыми показателями GAAP, представлена в конце этого пресс-релиза.
Обзор сегмента за Второй квартал
Отчетная чистая выручка и операционная прибыль за квартал представлены в таблице ниже:
|
|
Net Revenues |
|
Operating Income(1) |
||||||||||||||
|
|
Three Months Ended |
|
% Increase |
|
Three Months Ended |
|
% Increase |
||||||||||
($ millions) |
|
May 29,
|
|
May 30,
|
|
|
May 29,
|
|
May 30,
|
|
||||||||
Americas |
|
$ |
776 |
|
$ |
661 |
|
17 |
% |
|
$ |
159 |
|
$ |
148 |
|
8 |
% |
Europe |
|
$ |
367 |
|
$ |
355 |
|
3 |
% |
|
$ |
67 |
|
$ |
59 |
|
12 |
% |
Asia |
|
$ |
222 |
|
$ |
192 |
|
16 |
% |
|
$ |
19 |
|
$ |
6 |
|
203 |
% |
Other Brands |
|
$ |
106 |
|
$ |
68 |
|
56 |
% |
|
$ |
4 |
|
$ |
2 |
|
66 |
% |
(1) |
Segment operating income is equal to segment Adjusted EBIT. |
Результаты за 2022 год включены в Ежеквартальный отчет компании по форме 10-Q за квартал, закончившийся 29 мая 2022 года.
Обзор баланса по состоянию на 29 мая 2022 года
Дополнительная информация о коэффициенте левереджа, который является финансовым показателем, не относящимся к GAAP, представлена в конце этого пресс-релиза.
Доходы акционеров
Во втором квартале компания вернула акционерам около 80 миллионов долларов, в том числе:
В июне 2022 года Совет директоров одобрил программу обратного выкупа акций на сумму 750 миллионов долларов без даты истечения срока действия.
Компания объявила о выплате дивидендов в размере 0,12 доллара на акцию на общую сумму около 48 миллионов долларов, которые будут выплачены наличными 17 августа 2022 года владельцам обыкновенных акций класса А и класса В на момент закрытия бизнеса 1 августа 2022 года.
Компания подтверждает ожидания на 2022 финансовый год и заключается в следующем:
Компания планирует поделиться дополнительной информацией во время телефонной конференции с инвесторами. Прогноз компании не предполагает существенного ухудшения пандемии COVID-19, инфляционного давления или дальнейшего влияния валютных курсов.
Конференц-звонок для инвесторов
Чтобы получить доступ к конференц-звонку, пожалуйста, предварительно зарегистрируйтесь на https://register.vevent.com/register/BI6d429c80e9c1464b8c9cfd0a839f8968 . Зарегистрировавшиеся получат подтверждение с информацией о наборе номера.
Прямую веб-трансляцию мероприятия можно посмотреть на https://edge.media-server.com/mmc/p/jej85fp6 . Повтор веб-трансляции будет доступен на http://investors.levistrauss.com начинается примерно через два часа после события и архивируется на сайте в течение одного квартала.
Пожалуйста, посмотрите http://www.levistrauss.com/investors/earnings-webcast для обсуждения и согласования показателей, не относящихся к GAAP, упомянутых на телефонной конференции с инвесторами.
О Levi Strauss & Co.
Levi Strauss & Co. является одной из крупнейших в мире компаний по производству одежды под брендом и мировым лидером в производстве джинсовой одежды. Компания разрабатывает и продает джинсы, повседневную одежду и сопутствующие аксессуары для мужчин, женщин и детей под брендами Levi's®, Dockers®, Signature by Levi Strauss & Co.™, Denizen® и Beyond Yoga®. Ее продукция продается более чем в 110 странах мира через сеть розничных магазинов, универмаги, интернет-сайты и примерно 3200 специализированных магазинов и магазинов по всему миру. Levi Strauss & Co. сообщила, что чистая выручка в 2021 году составила 5,8 миллиарда долларов. Для получения дополнительной информации перейдите по ссылке http://levistrauss.com , а для получения информации о новостях и объявлениях компании перейдите по адресу http://investors.levistrauss.com .
Прогнозные заявления
Этот пресс-релиз и соответствующая телефонная конференция содержат, в дополнение к исторической информации, заявления прогнозного характера, в том числе заявления, касающиеся: продолжающегося воздействия пандемии COVID-19 на бизнес компании; будущих финансовых результатов, включая выручку, скорректированную рентабельность по EBIT, рентабельность вложенного капитала, скорректированную валовую прибыль, скорректированный SG&A, налоговая ставка и скорректированная разводненная прибыль на акцию; капитальные затраты; инициативы по ценообразованию; открытие новых магазинов; инфляционное давление; глобальные экономические условия; инвестиции в инициативы с высокими темпами роста; будущие выплаты дивидендов; будущие выкупы акций; будущая прибыль акционеров; и усилия по диверсификации категорий продуктов, каналов сбыта и географии., и соответствующие прогнозы доходов. Компания основала эти прогнозные заявления на своих текущих предположениях, ожиданиях и прогнозах относительно будущих событий. Такие слова, как, но не ограничиваясь ими, “верю”, “будем”, “чтобы мы могли”, “когда”, “предвидеть”, “намереваться”, “оценивать”, “ожидать”, “проектировать” и подобные выражения используются для обозначения прогнозных заявлений, хотя и не все прогнозные заявления содержат эти слова. Эти прогнозные заявления обязательно являются оценками, отражающими наилучшие суждения высшего руководства, и связаны с рядом рисков и неопределенностей, которые могут привести к тому, что фактические результаты будут существенно отличаться от тех, которые предполагаются в прогнозных заявлениях. Инвесторам следует рассмотреть информацию, содержащуюся в заявках компании в Комиссию по ценным бумагам и биржам США (SEC), включая ее Годовой отчет по форме 10-K за 2021 финансовый год и ее квартальный отчет по форме 10-Q за квартал, закончившийся 29 мая 2022 года, особенно в разделе “Обсуждение руководства и Анализ финансового состояния и результатов деятельности” и разделы “Факторы риска”. Другие неизвестные или непредсказуемые факторы также могут оказать существенное негативное влияние на будущие результаты, производительность или достижения. В свете этих рисков, неопределенностей, допущений и факторов прогнозные события, обсуждаемые в этом пресс-релизе и связанной с ним телефонной конференции, могут не произойти. Мы предостерегаем вас от чрезмерного доверия к этим прогнозным заявлениям, которые относятся только к указанной дате или, если дата не указана, к дате настоящего пресс-релиза и соответствующей телефонной конференции. Компания не несет никаких обязательств и не намерена обновлять или пересматривать какие-либо прогнозные заявления, содержащиеся в этом пресс-релизе и связанной с ним телефонной конференции, чтобы отразить обстоятельства, существующие после даты этого пресс-релиза и связанной с ним телефонной конференции, или отразить наступление будущих событий, даже если такие обстоятельства или будущие события ясно показывают, что любые ожидаемые результаты, выраженные или подразумеваемые в этих прогнозных заявлениях, не будут реализованы.
Финансовые показатели, не относящиеся к ОПБУ
Компания отчитывается о своих финансовых результатах в соответствии с общепринятыми принципами бухгалтерского учета в США (GAAP) и правилами SEC. Чтобы дополнить свою финансовую отчетность, подготовленную и представленную в соответствии с GAAP, компания использует определенные финансовые показатели, отличные от GAAP, такие как Скорректированная валовая прибыль, Скорректированная валовая прибыль, Скорректированные SG&A, Скорректированный показатель EBIT (как в отчетности, так и в постоянной валюте), Скорректированная рентабельность по EBIT (как в отчетности, так и в в постоянной валюте), Скорректированная чистая прибыль (как в отчетности, так и в постоянной валюте), Скорректированная разводненная прибыль на акцию (как в отчетности, так и в постоянной валюте), чистая выручка в постоянной валюте, чистый долг, коэффициент левереджа, Скорректированный свободный денежный поток и доходность на инвестированный капитал чтобы предоставить инвесторам дополнительную полезную информацию о своих финансовых результатах, улучшить общее понимание своих прошлых результатов и будущих перспектив и обеспечить большую прозрачность в отношении важных показателей, используемых руководством для принятия финансовых и операционных решений. Компания представляет эти финансовые показатели, не относящиеся к GAAP, чтобы помочь инвесторам увидеть ее финансовые показатели с точки зрения руководства, а также потому, что, по ее мнению, они предоставляют инвесторам дополнительный инструмент для расчета основных финансовых показателей компании за несколько периодов с другими компаниями в своей отрасли. В таблицах, приведенных ниже, представлены Скорректированная валовая прибыль, Скорректированная валовая прибыль, Скорректированные SG&A, Скорректированный показатель EBIT (как в отчетности, так и в постоянной валюте), Скорректированная рентабельность по EBIT (как в отчетности, так и в постоянной валюте), Скорректированный чистый доход (как в отчетности, так и в постоянной валюте).), Скорректированная маржа чистой прибыли (как в отчетности, так и в постоянной валюте), Скорректированная разводненная прибыль на акцию (как в отчетности, так и в постоянной валюте), чистая выручка в постоянной валюте, чистый долг, коэффициент левереджа, Скорректированный свободный денежный поток и доходность на инвестированный капитал, а также соответствующие сверка этих финансовых показателей, не относящихся к ОПБУ, с наиболее непосредственно сопоставимыми финансовыми показателями, рассчитанными в соответствии с ОПБУ. Финансовые показатели, не относящиеся к GAAP, имеют ограничения в своей полезности для инвесторов, поскольку они не имеют стандартизированного значения, предписанного GAAP, и не подготовлены в соответствии с каким-либо всеобъемлющим набором правил или принципов бухгалтерского учета. Определенные статьи, которые могут быть исключены или включены в финансовые показатели, не относящиеся к GAAP, могут быть значительными статьями, которые могут повлиять на финансовое положение компании, результаты деятельности и денежные потоки, и поэтому их следует учитывать при оценке фактического финансового состояния и результатов деятельности компании. Финансовые показатели, не относящиеся к ОПБУ, подвержены неотъемлемым ограничениям, поскольку они отражают суждение руководства при определении того, как они формулируются. Некоторые конкретные ограничения включают, но не ограничиваются этим, тот факт, что такие финансовые показатели, не относящиеся к GAAP: (а) не отражают денежные затраты на капитальные затраты, договорные обязательства или обязательства, включая пенсионные обязательства, обязательства по медицинскому страхованию после выхода на пенсию и обязательства по подоходному налогу; (б) не отражают изменения в, или потребности в денежных средствах для удовлетворения потребностей в оборотном капитале; и (c) не отражают процентные расходы или потребности в денежных средствах, необходимые для обслуживания процентов или основной суммы задолженности. Кроме того, финансовые показатели, не относящиеся к GAAP, могут рассчитываться иначе, чем показатели с аналогичным названием, используемые другими компаниями, и, следовательно, не могут быть напрямую сопоставимы с ними. В результате финансовые показатели, не относящиеся к GAAP, следует рассматривать как дополнение, а не как альтернативу или замену финансовых результатов компании, подготовленных в соответствии с GAAP. Компания настоятельно призывает инвесторов пересмотреть сверку этих финансовых показателей, не относящихся к GAAP, с наиболее непосредственно сопоставимыми финансовыми показателями GAAP, включенными в этот пресс-релиз, и не полагаться на какой-либо один финансовый показатель для оценки своего бизнеса. См. раздел “СВЕРКА ФИНАНСОВЫХ ПОКАЗАТЕЛЕЙ GAAP С ФИНАНСОВЫМИ ПОКАЗАТЕЛЯМИ, НЕ ОТНОСЯЩИМИСЯ К GAAP” ниже для сверки с наиболее сопоставимыми финансовыми показателями GAAP. Сверка прогнозной информации, не относящейся к GAAP, с соответствующими показателями GAAP не может быть предоставлена без необоснованных усилий из-за сложности количественной оценки различных статей, включая, но не ограничиваясь этим, влияние колебаний валютных курсов, налогов и любых будущих расходов на реструктуризацию, связанных с реструктуризацией, выходных пособий и других расходов.
Постоянная валюта
Компания сообщает определенные операционные результаты на основе постоянной валюты, чтобы облегчить сравнение своих результатов от периода к периоду без учета влияния колебаний валютных курсов. Термин "Курсы обмена иностранной валюты" относится к обменным курсам, используемым для перевода операционных результатов компании для всех стран, где функциональной валютой не является доллар США, в доллары США. Поскольку компания является глобальной компанией, курсы обмена иностранной валюты, используемые для пересчета, могут оказать существенное влияние на ее отчетные результаты. В целом, на финансовые результаты компании положительно влияет ослабление Доллара США и отрицательно влияет укрепление Доллара США по сравнению с иностранными валютами, в которых она ведет свою деятельность. Ссылки на операционные результаты в постоянной валюте означают операционные результаты без влияния колебаний обменного курса иностранной валюты.
Компания считает, что раскрытие результатов в постоянной валюте полезно для инвесторов, поскольку это облегчает сравнение результатов от периода к периоду за счет повышения прозрачности базовых показателей за счет исключения влияния колебаний валютных курсов. Однако результаты в постоянной валюте являются финансовыми показателями, не относящимися к ОПБУ, и не должны рассматриваться в качестве альтернативы или замены сопоставимых показателей, подготовленных в соответствии с ОПБУ. Результаты в постоянной валюте не имеют стандартизированного значения, предписанного GAAP, не подготовлены в соответствии с каким-либо всеобъемлющим набором правил или принципов бухгалтерского учета и должны рассматриваться совместно с консолидированной финансовой отчетностью компании, подготовленной в соответствии с GAAP. Результаты в постоянной валюте имеют ограничения в их полезности для инвесторов и могут быть рассчитаны иначе, чем показатели с аналогичным названием, используемые другими компаниями, и, следовательно, не могут быть напрямую сопоставимы с ними.
Компания рассчитывает суммы в постоянной валюте путем пересчета сумм в местной валюте за период предыдущего года по фактическим обменным курсам за текущий период. Результаты в постоянной валюте не устраняют влияние валюты операции, которое в первую очередь включает реализованные и нереализованные прибыли и убытки, признанные в результате оценки и переоценки покупок и продаж продуктов в валюте, отличной от функциональной валюты. Кроме того, на валовую прибыль влияют прибыли и убытки, связанные с закупкой запасов, в основном продуктов, поставляемых в евро и долларах США, глобальной организацией поставщиков компании от имени ее зарубежных дочерних компаний.
Источник: Levi Strauss & Co. Отношения с инвесторами
LEVI STRAUSS & CO. AND SUBSIDIARIES |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
|
(Unaudited) |
|
|
||||
|
May 29,
|
|
November 28,
|
||||
|
|
|
|
||||
|
(Dollars in thousands) |
||||||
ASSETS |
|||||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
601,870 |
|
|
$ |
810,266 |
|
Short-term investments in marketable securities |
|
96,396 |
|
|
|
91,550 |
|
Trade receivables, net |
|
609,180 |
|
|
|
707,625 |
|
Inventories |
|
1,112,835 |
|
|
|
897,950 |
|
Other current assets |
|
222,081 |
|
|
|
202,510 |
|
Total current assets |
|
2,642,362 |
|
|
|
2,709,901 |
|
Property, plant and equipment, net |
|
513,776 |
|
|
|
502,562 |
|
Goodwill |
|
368,162 |
|
|
|
386,880 |
|
Other intangible assets, net |
|
289,176 |
|
|
|
291,332 |
|
Deferred tax assets, net |
|
556,120 |
|
|
|
573,114 |
|
Operating lease right-of-use assets, net |
|
1,019,524 |
|
|
|
1,103,705 |
|
Other non-current assets |
|
348,637 |
|
|
|
332,575 |
|
Total assets |
$ |
5,737,757 |
|
|
$ |
5,900,069 |
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
Current Liabilities: |
|
|
|
||||
Accounts payable |
|
558,665 |
|
|
|
524,838 |
|
Accrued salaries, wages and employee benefits |
|
221,815 |
|
|
|
274,700 |
|
Accrued sales returns and allowances |
|
188,467 |
|
|
|
209,364 |
|
Short-term operating lease liabilities |
|
243,841 |
|
|
|
245,369 |
|
Other accrued liabilities |
|
517,826 |
|
|
|
615,347 |
|
Total current liabilities |
|
1,730,614 |
|
|
|
1,869,618 |
|
Long-term debt |
|
998,484 |
|
|
|
1,020,700 |
|
Postretirement medical benefits |
|
47,033 |
|
|
|
51,439 |
|
Pension liabilities |
|
151,105 |
|
|
|
155,218 |
|
Long-term employee related benefits |
|
104,802 |
|
|
|
108,544 |
|
Long-term operating lease liabilities |
|
925,049 |
|
|
|
969,482 |
|
Other long-term liabilities |
|
52,338 |
|
|
|
59,407 |
|
Total liabilities |
|
4,009,425 |
|
|
|
4,234,408 |
|
|
|
|
|
||||
Commitments and contingencies |
|
|
|
||||
|
|
|
|
||||
Stockholders’ Equity: |
|
|
|
||||
Common stock — $0.001 par value; 1,200,000,000 Class A shares authorized, 98,326,863 shares and 97,567,627 shares issued and outstanding as of May 29, 2022 and November 28, 2021, respectively; and 422,000,000 Class B shares authorized, 298,351,504 shares and 302,209,813 shares issued and outstanding, as of May 29, 2022 and November 28, 2021, respectively |
|
397 |
|
|
|
400 |
|
Additional paid-in capital |
|
592,827 |
|
|
|
584,774 |
|
Accumulated other comprehensive loss |
|
(394,182 |
) |
|
|
(394,387 |
) |
Retained earnings |
|
1,529,290 |
|
|
|
1,474,874 |
|
Total stockholders’ equity |
|
1,728,332 |
|
|
|
1,665,661 |
|
Total liabilities and stockholders’ equity |
$ |
5,737,757 |
|
|
$ |
5,900,069 |
|
The notes accompanying the consolidated financial statements in the company's Form 10-Q for the second quarter of fiscal 2022 are an integral part of these consolidated financial statements. |
LEVI STRAUSS & CO. AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in thousands, except per share amounts) (Unaudited) |
||||||||||||||
Net revenues |
$ |
1,471,149 |
|
|
$ |
1,275,971 |
|
|
$ |
3,062,711 |
|
|
$ |
2,581,573 |
|
Cost of goods sold |
|
616,126 |
|
|
|
525,770 |
|
|
|
1,264,080 |
|
|
|
1,071,343 |
|
Gross profit |
|
855,023 |
|
|
|
750,201 |
|
|
|
1,798,631 |
|
|
|
1,510,230 |
|
Selling, general and administrative expenses |
|
778,857 |
|
|
|
643,746 |
|
|
|
1,488,233 |
|
|
|
1,226,652 |
|
Operating income |
|
76,166 |
|
|
|
106,455 |
|
|
|
310,398 |
|
|
|
283,578 |
|
Interest expense |
|
(4,360 |
) |
|
|
(19,933 |
) |
|
|
(8,608 |
) |
|
|
(43,243 |
) |
Loss on early extinguishment of debt |
|
— |
|
|
|
(30,108 |
) |
|
|
— |
|
|
|
(30,338 |
) |
Other income (expense), net |
|
6,004 |
|
|
|
(715 |
) |
|
|
21,901 |
|
|
|
373 |
|
Income before income taxes |
|
77,810 |
|
|
|
55,699 |
|
|
|
323,691 |
|
|
|
210,370 |
|
Income tax expense (benefit) |
|
28,068 |
|
|
|
(9,020 |
) |
|
|
78,106 |
|
|
|
3,147 |
|
Net income |
$ |
49,742 |
|
|
$ |
64,719 |
|
|
$ |
245,585 |
|
|
$ |
207,223 |
|
Earnings per common share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.13 |
|
|
$ |
0.16 |
|
|
$ |
0.62 |
|
|
$ |
0.52 |
|
Diluted |
$ |
0.12 |
|
|
$ |
0.16 |
|
|
$ |
0.61 |
|
|
$ |
0.50 |
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
397,882,576 |
|
|
|
401,964,569 |
|
|
|
398,650,665 |
|
|
|
400,771,248 |
|
Diluted |
|
403,782,416 |
|
|
|
412,102,841 |
|
|
|
405,852,351 |
|
|
|
410,644,463 |
|
The notes accompanying the consolidated financial statements in the company's Form 10-Q for the second quarter of fiscal 2022 are an integral part of these consolidated financial statements. |
LEVI STRAUSS & CO. AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in thousands) (Unaudited) |
||||||||||||||
Net income |
$ |
49,742 |
|
|
$ |
64,719 |
|
|
$ |
245,585 |
|
|
$ |
207,223 |
|
Other comprehensive income (loss), before related income taxes: |
|
|
|
|
|
|
|
||||||||
Pension and postretirement benefits |
|
2,041 |
|
|
|
2,743 |
|
|
|
4,226 |
|
|
|
5,681 |
|
Derivative instruments |
|
34,030 |
|
|
|
4,579 |
|
|
|
29,862 |
|
|
|
(12,736 |
) |
Foreign currency translation (losses) gains |
|
(14,049 |
) |
|
|
4,418 |
|
|
|
(25,138 |
) |
|
|
15,359 |
|
Unrealized (losses) gains on marketable securities |
|
(4,415 |
) |
|
|
4,034 |
|
|
|
(10,409 |
) |
|
|
4,435 |
|
Total other comprehensive income (loss), before related income taxes |
|
17,607 |
|
|
|
15,774 |
|
|
|
(1,459 |
) |
|
|
12,739 |
|
Income tax (benefit) expense related to items of other comprehensive income (loss) |
|
(415 |
) |
|
|
(3,987 |
) |
|
|
1,664 |
|
|
|
(2,784 |
) |
Comprehensive income, net of income taxes |
$ |
66,934 |
|
|
$ |
76,506 |
|
|
$ |
245,790 |
|
|
$ |
217,178 |
|
The notes accompanying the consolidated financial statements in the company's Form 10-Q for the second quarter of fiscal 2022 are an integral part of these consolidated financial statements. |
LEVI STRAUSS & CO. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY |
|||||||||||||||||||
|
Three Months Ended May 29, 2022 |
||||||||||||||||||
|
Class A & Class B Common Stock |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Accumulated Other Comprehensive Loss |
|
Total Stockholders' Equity |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Dollars in thousands) (Unaudited) |
||||||||||||||||||
Balance at February 27, 2022 |
$ |
399 |
|
|
$ |
575,310 |
|
|
$ |
1,559,254 |
|
|
$ |
(411,374 |
) |
|
$ |
1,723,589 |
|
Net income |
|
— |
|
|
|
— |
|
|
|
49,742 |
|
|
|
— |
|
|
|
49,742 |
|
Other comprehensive loss, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
17,192 |
|
|
|
17,192 |
|
Stock-based compensation and dividends, net |
|
— |
|
|
|
16,653 |
|
|
|
— |
|
|
|
— |
|
|
|
16,653 |
|
Employee stock purchase plan |
|
— |
|
|
|
2,200 |
|
|
|
— |
|
|
|
— |
|
|
|
2,200 |
|
Repurchase of common stock |
|
(2 |
) |
|
|
— |
|
|
|
(40,038 |
) |
|
|
— |
|
|
|
(40,040 |
) |
Tax withholdings on equity awards |
|
— |
|
|
|
(1,336 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,336 |
) |
Cash dividends declared ($0.10 per share) |
|
— |
|
|
|
— |
|
|
|
(39,668 |
) |
|
|
— |
|
|
|
(39,668 |
) |
Balance at May 29, 2022 |
$ |
397 |
|
|
$ |
592,827 |
|
|
$ |
1,529,290 |
|
|
$ |
(394,182 |
) |
|
$ |
1,728,332 |
|
|
Six Months Ended May 29, 2022 |
||||||||||||||||||
|
Class A & Class B Common Stock |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Accumulated Other Comprehensive Loss |
|
Total Stockholders' Equity |
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Dollars in thousands) (Unaudited) |
||||||||||||||||||
Balance at November 28, 2021 |
$ |
400 |
|
|
$ |
584,774 |
|
|
$ |
1,474,874 |
|
|
$ |
(394,387 |
) |
|
$ |
1,665,661 |
|
Net income |
|
— |
|
|
|
— |
|
|
|
245,585 |
|
|
|
— |
|
|
|
245,585 |
|
Other comprehensive loss, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
205 |
|
|
|
205 |
|
Stock-based compensation and dividends, net |
|
2 |
|
|
|
30,741 |
|
|
|
— |
|
|
|
— |
|
|
|
30,743 |
|
Employee stock purchase plan |
|
— |
|
|
|
4,473 |
|
|
|
— |
|
|
|
— |
|
|
|
4,473 |
|
Repurchase of common stock |
|
(5 |
) |
|
|
— |
|
|
|
(111,637 |
) |
|
|
— |
|
|
|
(111,642 |
) |
Tax withholdings on equity awards |
|
— |
|
|
|
(27,161 |
) |
|
|
— |
|
|
|
— |
|
|
|
(27,161 |
) |
Cash dividends declared ($0.20 per share) |
|
— |
|
|
|
— |
|
|
|
(79,532 |
) |
|
|
— |
|
|
|
(79,532 |
) |
Balance at May 29, 2022 |
$ |
397 |
|
|
$ |
592,827 |
|
|
$ |
1,529,290 |
|
|
$ |
(394,182 |
) |
|
$ |
1,728,332 |
|
|
Three Months Ended May 30, 2021 |
|||||||||||||||||
|
Class A & Class B Common Stock |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Accumulated Other Comprehensive Loss |
|
Total Stockholders' Equity |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
(Dollars in thousands) (Unaudited) |
|||||||||||||||||
Balance at February 28, 2021 |
$ |
400 |
|
$ |
609,068 |
|
|
$ |
1,240,792 |
|
|
$ |
(443,276 |
) |
|
$ |
1,406,984 |
|
Net Income |
|
— |
|
|
— |
|
|
|
64,719 |
|
|
|
— |
|
|
|
64,719 |
|
Other comprehensive loss, net of tax |
|
— |
|
|
— |
|
|
|
— |
|
|
|
11,787 |
|
|
|
11,787 |
|
Stock-based compensation and dividends, net |
|
2 |
|
|
23,384 |
|
|
|
— |
|
|
|
— |
|
|
|
23,386 |
|
Employee stock purchase plan |
|
— |
|
|
1,792 |
|
|
|
— |
|
|
|
— |
|
|
|
1,792 |
|
Tax withholdings on equity awards |
|
— |
|
|
(50,542 |
) |
|
|
— |
|
|
|
— |
|
|
|
(50,542 |
) |
Cash dividends declared ($0.06 per share) |
|
— |
|
|
— |
|
|
|
(24,104 |
) |
|
|
— |
|
|
|
(24,104 |
) |
Balance at May 30, 2021 |
$ |
402 |
|
$ |
583,702 |
|
|
$ |
1,281,407 |
|
|
$ |
(431,489 |
) |
|
$ |
1,434,022 |
|
|
Six Months Ended May 30, 2021 |
|||||||||||||||||
|
Class A & Class B Common Stock |
|
Additional Paid-In Capital |
|
Retained Earnings |
|
Accumulated Other Comprehensive Loss |
|
Total Stockholders' Equity |
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
|
(Dollars in thousands) (Unaudited) |
|||||||||||||||||
Balance at November 29, 2020 |
$ |
398 |
|
$ |
626,243 |
|
|
$ |
1,114,280 |
|
|
$ |
(441,446 |
) |
|
$ |
1,299,475 |
|
Net Income |
|
— |
|
|
— |
|
|
|
207,223 |
|
|
|
— |
|
|
|
207,223 |
|
Other comprehensive loss, net of tax |
|
— |
|
|
— |
|
|
|
— |
|
|
|
9,957 |
|
|
|
9,957 |
|
Stock-based compensation and dividends, net |
|
4 |
|
|
30,098 |
|
|
|
— |
|
|
|
— |
|
|
|
30,102 |
|
Employee stock purchase plan |
|
— |
|
|
3,721 |
|
|
|
— |
|
|
|
— |
|
|
|
3,721 |
|
Tax withholdings on equity awards |
|
— |
|
|
(76,360 |
) |
|
|
— |
|
|
|
— |
|
|
|
(76,360 |
) |
Cash dividends declared ($0.10 per share) |
|
— |
|
|
— |
|
|
|
(40,096 |
) |
|
|
— |
|
|
|
(40,096 |
) |
Balance at May 30, 2021 |
$ |
402 |
|
$ |
583,702 |
|
|
$ |
1,281,407 |
|
|
$ |
(431,489 |
) |
|
$ |
1,434,022 |
|
The notes accompanying the consolidated financial statements in the company's Form 10-Q for the second quarter of fiscal 2022 are an integral part of these consolidated financial statements. |
LEVI STRAUSS & CO. AND SUBSIDIARIES |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
Six Months Ended |
||||||
|
May 29,
|
|
May 30,
|
||||
|
|
|
|
||||
|
(Dollars in thousands) (Unaudited) |
||||||
Cash Flows from Operating Activities: |
|
|
|
||||
Net income |
$ |
245,585 |
|
|
$ |
207,223 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
77,740 |
|
|
|
69,926 |
|
Property, plant, equipment, right-of-use asset, and goodwill impairments |
|
54,733 |
|
|
|
5,147 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
30,338 |
|
Stock-based compensation |
|
30,743 |
|
|
|
30,102 |
|
Provision for (benefit from) deferred income taxes |
|
17,435 |
|
|
|
(46,857 |
) |
Other, net |
|
9,847 |
|
|
|
9,392 |
|
Net change in operating assets and liabilities |
|
(290,201 |
) |
|
|
(57,253 |
) |
Net cash provided by operating activities |
|
145,882 |
|
|
|
248,018 |
|
Cash Flows from Investing Activities: |
|
|
|
||||
Purchases of property, plant and equipment |
|
(120,507 |
) |
|
|
(67,501 |
) |
Payments on settlement of forward foreign exchange contracts not designated for hedge accounting |
|
(9,089 |
) |
|
|
(4,349 |
) |
Payments to acquire short-term investments |
|
(44,589 |
) |
|
|
(55,124 |
) |
Proceeds from sale, maturity and collection of short-term investments |
|
39,027 |
|
|
|
56,530 |
|
Net cash used for investing activities |
|
(135,158 |
) |
|
|
(70,444 |
) |
Cash Flows from Financing Activities: |
|
|
|
||||
Proceeds from issuance of long-term debt, net of issuance costs |
|
— |
|
|
|
489,554 |
|
Repayments of long-term debt including debt extinguishment costs |
|
— |
|
|
|
(820,000 |
) |
Other short-term borrowings, net |
|
213 |
|
|
|
(8,502 |
) |
Repurchase of common stock |
|
(114,232 |
) |
|
|
— |
|
Tax withholdings on equity awards |
|
(27,161 |
) |
|
|
(76,360 |
) |
Dividend to stockholders |
|
(79,532 |
) |
|
|
(40,097 |
) |
Other financing activities, net |
|
3,563 |
|
|
|
2,267 |
|
Net cash used for financing activities |
|
(217,149 |
) |
|
|
(453,138 |
) |
Effect of exchange rate changes on cash and cash equivalents and restricted cash |
|
(1,939 |
) |
|
|
2,500 |
|
Net decrease in cash and cash equivalents and restricted cash |
|
(208,364 |
) |
|
|
(273,064 |
) |
Beginning cash and cash equivalents, and restricted cash |
|
810,580 |
|
|
|
1,497,648 |
|
Ending cash and cash equivalents, and restricted cash |
|
602,216 |
|
|
|
1,224,584 |
|
Less: Ending restricted cash |
|
(346 |
) |
|
|
(504 |
) |
Ending cash and cash equivalents |
$ |
601,870 |
|
|
$ |
1,224,080 |
|
|
|
|
|
||||
Noncash Investing and Financing Activity: |
|
|
|
||||
Property, plant and equipment acquired and not yet paid at end of period |
$ |
47,211 |
|
|
$ |
29,579 |
|
Supplemental disclosure of cash flow information: |
|
|
|
||||
Cash paid for interest during the period |
$ |
18,947 |
|
|
$ |
29,926 |
|
Cash paid for income taxes during the period, net of refunds |
|
56,776 |
|
|
|
30,750 |
|
The notes accompanying the consolidated financial statements in the company's Form 10-Q for the second quarter of fiscal 2022 are an integral part of these consolidated financial statements. |
сверка ОПБУ с финансовыми показателями, не относящимися к ОПБУ
на второй квартал 2022 года
Следующая информация относится к финансовым показателям, не относящимся к GAAP, и должна быть прочитана в связи с призывом инвесторов, состоявшимся 7 июля 2022 года, в ходе которого обсуждались финансовое состояние и результаты деятельности компании по состоянию на квартал, закончившийся 29 мая 2022 года, и за квартал, закончившийся 29 мая 2022 года. Скорректированная валовая прибыль, Скорректированная валовая прибыль, Скорректированный SG&A, Скорректированный EBIT, Скорректированная рентабельность по EBIT, Скорректированная чистая прибыль, Скорректированная разводненная прибыль на акцию, чистый долг, Скорректированный свободный денежный поток, чистая выручка в постоянной валюте, скорректированный EBIT в постоянной валюте и коэффициент левереджа не являются финансовыми показателями, подготовленными в соответствии с ОПБУ. Как используется в настоящем пресс-релизе: (1) скорректированный валовой прибыли, представляет валовой прибыли без учета COVID-19, связанные с запасами и затраты, связанные с приобретением, сборов и скорректированная валовая прибыль, представляет собой скорректированный валовой прибыли в процентах от выручки; (2) скорректированные коммерческие, общехозяйственные и административные представляет административных вычетом соответствующих расходов, связанные с изменением справедливой стоимости по наличным расчетом компенсации на основе акций, COVID-19 родственные обязанности, приобретение и интеграция сопутствующие расходы, расходы на обесценение и реструктуризацию и перестройку связанные с ними сборы, выходные пособия и прочие доходы, нетто; (3) скорректированный показатель EBIT представляет собой чистый доход за вычетом расходов по налогу на прибыль (доходы), процентные расходы, прочие (доходы) расходы, нетто, потерь на досрочное погашение задолженности, влияния изменения справедливой стоимости денежных расчетов запасов на основе компенсации, COVID-19, связанные с запасами затраты и прочие расходы, приобретение и интеграция сопутствующие расходы, расходы на обесценение и реструктуризацию и перестройку сопутствующие расходы, выходное пособие и другие, чистой, и скорректированный показатель EBIT маржи, скорректированный показатель EBIT в процентах от выручки; (4) Скорректированный показатель EBITDA представляет собой EBITDA скорректированный показатель EBIT без учета амортизации и амортизационные отчисления; (5) Скорректированная чистая прибыль представляет собой чистый доход за вычетом расходов, связанных с изменением справедливой стоимости по наличным расчетом компенсации на основе акций, убыток от досрочного погашения долга, COVID-19, связанные с запасами затраты и прочие расходы, Нетто с COVID-19 правительство субсидий наживы, приобретения и интеграции сопутствующие расходы, расходы на обесценение и реструктуризацию и перестройку связанные с ними сборы, выходные пособия и прочие доходы, нетто, и налоговые последствия корректировки и скорректированная рентабельность по чистой прибыли, а скорректированная чистая прибыль в процентах от выручки; (6) скорректированная разводненная прибыль на акцию представляет скорректированной чистой прибыли на средневзвешенное количество разбавленного обыкновенных акций; (7) чистый долг рассчитывается как общий долг, за исключением финансового лизинга, за вычетом денежных средств и их эквивалентов и краткосрочных финансовых вложений в высоколиквидные ценные бумаги; (8) коэффициент заемных средств представляет собой общую сумму задолженности, кроме финансовой аренды, разделить на двенадцать месяцев скорректированного показателя EBITDA; (9) Скорректированный свободный денежный поток представляет денежных средств от операционной деятельности за минусом покупки имущества, машин и оборудования; (10) рентабельность инвестированного капитала представляет трейлинг-четыре квартала доходы до вычета процентов и налогов (Скорректированная чистая прибыль плюс процентные расходы и расходы по налогу на прибыль за вычетом подоходного налога регулировки), деленный на средний продольный пять четвертей от общего инвестированного капитала (итого долг плюс собственный капитал за вычетом денежных средств и краткосрочных финансовых вложений); (11) постоянная валюте выручки представляет собой чистый доход без воздействию колебаний курсов обмена иностранных валют; (12) в постоянном валюты скорректированный показатель EBIT представляет собой скорректированный показатель EBIT без воздействию колебаний курсов обмена иностранных валют; (13) постоянные валюте, скорректированный чистый доход представляет Скорректированная чистая прибыль без воздействию колебаний курсов обмена иностранных валют; и (14) в постоянном валюты скорректированная разводненная прибыль на акцию представляет скорректированная разводненная прибыль на акцию без воздействию колебаний курсов обмена иностранных валют.
Adjusted Gross Profit: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in millions) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
Most comparable GAAP measure: |
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
855.0 |
|
|
$ |
750.2 |
|
|
$ |
1,798.6 |
|
|
$ |
1,510.2 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP measure: |
|
|
|
|
|
|
|
||||||||
Gross profit |
$ |
855.0 |
|
|
$ |
750.2 |
|
|
$ |
1,798.6 |
|
|
$ |
1,510.2 |
|
COVID-19 related inventory costs(1) |
|
1.4 |
|
|
|
(7.2 |
) |
|
|
1.4 |
|
|
|
(14.4 |
) |
Acquisition related charges(2) |
|
— |
|
|
|
— |
|
|
|
2.0 |
|
|
|
— |
|
Adjusted gross profit |
$ |
856.4 |
|
|
$ |
743.0 |
|
|
$ |
1,802.0 |
|
|
$ |
1,495.8 |
|
Adjusted gross margin |
|
58.2 |
% |
|
|
58.2 |
% |
|
|
58.8 |
% |
|
|
57.9 |
% |
| _____________ | ||
(1) |
For the three-month and six-month periods ended May 30, 2021, the reductions in COVID-19 related inventory charges is primarily related to reductions in our estimate of adverse fabric purchase commitments, initially recorded in the second quarter of 2020. |
|
(2) |
Acquisition related charges include the inventory markup above historical carrying value associated with the Beyond Yoga acquisition. |
|
Adjusted SG&A: |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in millions) |
||||||||||||||
|
(Unaudited) |
||||||||||||||
Most comparable GAAP measure: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
$ |
778.8 |
|
|
$ |
643.7 |
|
|
$ |
1,488.2 |
|
|
$ |
1,226.6 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP measure: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses |
$ |
778.8 |
|
|
$ |
643.7 |
|
|
$ |
1,488.2 |
|
|
$ |
1,226.6 |
|
Impact of changes in fair value on cash-settled stock-based compensation |
|
— |
|
|
|
(1.6 |
) |
|
|
(0.6 |
) |
|
|
(2.5 |
) |
COVID-19 related charges(1) |
|
(3.9 |
) |
|
|
10.0 |
|
|
|
(3.9 |
) |
|
|
6.9 |
|
Acquisition and integration related charges |
|
(1.1 |
) |
|
|
— |
|
|
|
(3.1 |
) |
|
|
— |
|
Impairment charges(2) |
|
(51.1 |
) |
|
|
— |
|
|
|
(51.1 |
) |
|
|
— |
|
Restructuring and restructuring related charges, severance and other, net(3) |
|
(11.7 |
) |
|
|
(23.7 |
) |
|
|
(10.7 |
) |
|
|
(23.8 |
) |
Adjusted SG&A |
$ |
711.0 |
|
|
$ |
628.4 |
|
|
$ |
1,418.8 |
|
|
$ |
1,207.2 |
|
| _____________ | ||
(1) |
For the three-month and six-month periods ended May 30, 2021, the net reduction in COVID-19 related charges is primarily reductions in allowances related to customer receivables. |
|
(2) |
For the three-month and six-month periods ended May 29, 2022, impairment charges include $4.1 million of property, plant and equipment, $11.6 million of goodwill and $35.4 million of certain store right-of-use assets related to the Russia-Ukraine crisis. |
|
(3) |
For the three-month and six-month periods ended May 29, 2022, restructuring and restructuring related charges, severance and other, net includes $9.3 million of charges related to the Russia-Ukraine crisis. Other, net includes transaction and deal related costs. |
|
| Adjusted EBIT and Adjusted EBITDA: | |||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(Dollars in millions) |
||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||
Most comparable GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
$ |
49.7 |
|
|
$ |
64.7 |
|
|
$ |
245.6 |
|
|
$ |
207.2 |
|
|
$ |
591.9 |
|
|
$ |
291.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
$ |
49.7 |
|
|
$ |
64.7 |
|
|
$ |
245.6 |
|
|
$ |
207.2 |
|
|
$ |
591.9 |
|
|
$ |
291.0 |
|
Income tax expense (benefit) |
|
28.1 |
|
|
|
(9.0 |
) |
|
|
78.1 |
|
|
|
3.2 |
|
|
|
101.6 |
|
|
|
23.1 |
|
Interest expense |
|
4.4 |
|
|
|
19.9 |
|
|
|
8.6 |
|
|
|
43.2 |
|
|
|
38.3 |
|
|
|
97.5 |
|
Other (income) expense, net |
|
(6.0 |
) |
|
|
0.8 |
|
|
|
(21.9 |
) |
|
|
(0.3 |
) |
|
|
(25.0 |
) |
|
|
26.1 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
30.1 |
|
|
|
— |
|
|
|
30.3 |
|
|
|
6.2 |
|
|
|
30.3 |
|
Impact of changes in fair value on cash-settled stock-based compensation(1) |
|
— |
|
|
|
1.6 |
|
|
|
0.6 |
|
|
|
2.5 |
|
|
|
2.3 |
|
|
|
5.4 |
|
COVID-19 related inventory costs and other charges(2) |
|
5.3 |
|
|
|
(17.2 |
) |
|
|
5.3 |
|
|
|
(21.3 |
) |
|
|
16.9 |
|
|
|
(36.3 |
) |
Acquisition and integration related charges(3) |
|
1.1 |
|
|
|
— |
|
|
|
5.1 |
|
|
|
— |
|
|
|
12.8 |
|
|
|
— |
|
Impairment charges(4) |
|
51.1 |
|
|
|
— |
|
|
|
51.1 |
|
|
|
— |
|
|
|
51.1 |
|
|
|
— |
|
Restructuring and restructuring related charges, severance and other, net(5) |
|
11.7 |
|
|
|
23.7 |
|
|
|
10.7 |
|
|
|
23.8 |
|
|
|
11.4 |
|
|
|
49.2 |
|
Adjusted EBIT |
$ |
145.4 |
|
|
$ |
114.6 |
|
|
$ |
383.2 |
|
|
$ |
288.6 |
|
|
$ |
807.5 |
|
|
$ |
486.3 |
|
Depreciation and amortization(6) |
|
37.6 |
|
|
|
34.4 |
|
|
|
75.5 |
|
|
|
69.7 |
|
|
|
147.8 |
|
|
|
137.9 |
|
Adjusted EBITDA |
$ |
183.0 |
|
|
$ |
149.0 |
|
|
$ |
458.7 |
|
|
$ |
358.3 |
|
|
$ |
955.3 |
|
|
$ |
624.2 |
|
Adjusted EBIT margin |
|
9.9 |
% |
|
|
9.0 |
% |
|
|
12.5 |
% |
|
|
11.2 |
% |
|
|
|
|
||||
| _____________ | ||
(1) |
Includes the impact of changes in fair value of Class B common stock following the grant date on awards that were granted as cash-settled and subsequently replaced with stock-settled awards concurrent with the IPO. |
|
(2) |
For the three-month and six-month periods ended May 30, 2021, the net reduction in COVID-19 related inventory costs and other charges mainly represents reductions in COVID-19 related inventory charges, as a result of reductions in our estimate of adverse fabric purchase commitments, the recoveries of receivables previously estimated to be not collectible, partially offset by incremental impairment costs in response to the global pandemic. |
|
(3) |
Acquisition and integration related charges includes the inventory markup above historical carrying value, as well as SG&A expenses associated with the Beyond Yoga acquisition. |
|
(4) |
For the three-month and six-month periods ended May 29, 2022, impairment charges include $4.1 million of property, plant and equipment, $11.6 million of goodwill and $35.4 million of certain store right-of-use assets as a result of the Russia-Ukraine crisis. |
|
(5) |
For the three-month and six-month periods ended May 29, 2022, restructuring and restructuring related charges, severance and other, net includes $9.3 million of charges related to the Russia-Ukraine crisis. Other, net includes transaction and deal related costs. |
|
(6) |
Depreciation and amortization amount net of amortization included in Restructuring and restructuring related charges, severance and other, net. |
|
Adjusted Net Income and Adjusted Diluted Earnings per Share: |
|||||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
(Dollars in millions, except per share amounts) |
||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||
Most comparable GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
$ |
49.7 |
|
|
$ |
64.7 |
|
|
$ |
245.6 |
|
|
$ |
207.2 |
|
|
$ |
591.9 |
|
|
$ |
291.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-GAAP measure: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income |
$ |
49.7 |
|
|
$ |
64.7 |
|
|
$ |
245.6 |
|
|
$ |
207.2 |
|
|
$ |
591.9 |
|
|
$ |
291.0 |
|
Impact of changes in fair value on cash-settled stock-based compensation(1) |
|
— |
|
|
|
1.6 |
|
|
|
0.6 |
|
|
|
2.5 |
|
|
|
2.3 |
|
|
|
5.4 |
|
Loss on early extinguishment of debt |
|
— |
|
|
|
30.1 |
|
|
|
— |
|
|
|
30.3 |
|
|
|
6.2 |
|
|
|
30.3 |
|
COVID-19 related inventory costs and other charges, net(2) |
|
5.3 |
|
|
|
(17.2 |
) |
|
|
(7.2 |
) |
|
|
(21.3 |
) |
|
|
4.4 |
|
|
|
(36.3 |
) |
Acquisition and integration related costs(3) |
|
1.1 |
|
|
|
— |
|
|
|
5.1 |
|
|
|
— |
|
|
|
12.8 |
|
|
|
— |
|
Impairment charges(4) |
|
51.1 |
|
|
|
— |
|
|
|
51.1 |
|
|
|
— |
|
|
|
51.1 |
|
|
|
— |
|
Restructuring and restructuring related charges, severance and other, net(5) |
|
11.7 |
|
|
|
23.7 |
|
|
|
10.7 |
|
|
|
23.8 |
|
|
|
11.4 |
|
|
|
49.2 |
|
Pension settlement losses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14.7 |
|
Tax impact of adjustments(6) |
|
(2.2 |
) |
|
|
(9.5 |
) |
|
|
— |
|
|
|
(8.8 |
) |
|
|
(7.0 |
) |
|
|
(7.9 |
) |
Adjusted net income |
$ |
116.7 |
|
|
$ |
93.4 |
|
|
$ |
305.9 |
|
|
$ |
233.7 |
|
|
$ |
673.1 |
|
|
$ |
346.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Adjusted net income margin |
|
7.9 |
% |
|
|
7.3 |
% |
|
|
10.0 |
% |
|
|
9.1 |
% |
|
|
|
|
||||
Adjusted diluted earnings per share |
$ |
0.29 |
|
|
$ |
0.23 |
|
|
$ |
0.75 |
|
|
$ |
0.57 |
|
|
|
|
|
||||
| _____________ | ||
(1) |
Includes the impact of changes in fair value of Class B common stock following the grant date on awards that were granted as cash-settled and subsequently replaced with stock-settled awards concurrent with the IPO. |
|
(2) |
For the three-month and six-month periods ended May 29, 2022, the net reduction primarily reflects a payment received from the German government as reimbursement for COVID-19 losses incurred in prior years. |
|
For the three-month and six-month periods ended May 30, 2021, the net reduction in COVID-19 related inventory costs and other charges recognized mainly represents reductions in COVID-19 related inventory charges, as a result of reductions in our estimate of adverse fabric purchase commitments, the recoveries of receivables previously estimated to be not collectible, partially offset by incremental impairment costs in response to the global pandemic. |
||
(3) |
Acquisition and integration related charges includes the inventory markup above historical carrying value, as well as SG&A expenses associated with the Beyond Yoga acquisition. |
|
(4) |
For the three-month and six-month periods ended May 29, 2022, impairment charges include $4.1 million of property, plant and equipment, $11.6 million of goodwill and $35.4 million of certain store right-of-use assets as a result of the Russia-Ukraine crisis. |
|
(5) |
For the three-month and six-month periods ended May 29, 2022, restructuring and restructuring related charges, severance and other, net includes $9.3 million of charges related to the Russia-Ukraine crisis. Other charges included are transaction and deal related costs. |
|
(6) |
Tax impact calculated using the annual effective tax rate, excluding discrete costs and benefits. Charges associated with the Russia-Ukraine crisis are non-deductible and therefore have not been tax effected. |
|
Net Debt and Leverage Ratio: |
|||||||
|
May 29,
|
|
November 28,
|
||||
|
|
|
|
||||
|
(Dollars in millions) |
||||||
|
(Unaudited) |
|
|
||||
Most comparable GAAP measure: |
|
|
|
||||
Total debt, excluding finance leases |
$ |
1,004.4 |
|
|
$ |
1,026.6 |
|
|
|
|
|
||||
Non-GAAP measure: |
|
|
|
||||
Total debt, excluding finance leases |
$ |
1,004.4 |
|
|
$ |
1,026.6 |
|
Cash and cash equivalents |
|
(601.9 |
) |
|
|
(810.3 |
) |
Short-term investments in marketable securities |
|
(96.4 |
) |
|
|
(91.5 |
) |
Net debt |
$ |
306.1 |
|
|
$ |
124.8 |
|
|
May 29,
|
|
May 30,
|
||
|
|
|
|
||
|
(Dollars in millions) |
||||
|
(Unaudited) |
||||
Total debt, excluding finance leases |
$ |
1,004.4 |
|
$ |
1,273.1 |
Last Twelve Months Adjusted EBITDA(1) |
$ |
955.3 |
|
$ |
624.2 |
Leverage ratio |
|
1.1 |
|
|
2.0 |
| _____________ | ||
(1) |
Last Twelve Months Adjusted EBITDA is reconciled from net income which is the most comparable GAAP measure. Refer to Adjusted EBIT and Adjusted EBITDA table for more information. |
|
Скорректированный Свободный Денежный Поток:
Ранее мы определили Скорректированный свободный денежный поток, финансовый показатель, не относящийся к GAAP, как чистый денежный поток от операционной деятельности за вычетом приобретения основных средств, плюс поступления от расчетов по форвардным валютным контрактам, не предназначенным для учета хеджирования, за вычетом выкупа обыкновенных акций, удержания налогов при выплате вознаграждения за участие в капитале, и денежные дивиденды акционерам. Начиная со второго квартала 2022 года, определение скорректированного свободного денежного потока пересматривается, чтобы включить чистый денежный поток от операционной деятельности за вычетом приобретения основных средств. Мы считаем, что это более репрезентативный показатель нашего свободного денежного потока, помогает в сопоставимости результатов и согласуется с тем, как руководство оценивает результаты деятельности. В таблице ниже приведены пересмотренные результаты за предыдущий период. Кроме того, мы представим обновленные выверки, не относящиеся к GAAP, в соответствии с этим пересмотренным определением в будущих отчетах за соответствующие периоды предыдущего года.
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
May 29,
|
|
May 30,
|
|
May 29,
|
|
May 30,
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in millions) |
|
(Dollars in millions) |
||||||||||||
|
(Unaudited) |
|
(Unaudited) |
||||||||||||
Most comparable GAAP measure: |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
59.8 |
|
|
$ |
178.5 |
|
|
$ |
145.9 |
|
|
$ |
248.0 |
|
Net cash used for investing activities |
|
(57.0 |
) |
|
|
(35.5 |
) |
|
|
(135.2 |
) |
|
|
(70.4 |
) |
Net cash used for financing activities |
|
(77.7 |
) |
|
|
(892.8 |
) |
|
|
(217.1 |
) |
|
|
(453.1 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-GAAP measure: |
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
$ |
59.8 |
|
|
$ |
178.5 |
|
|
$ |
145.9 |
|
|
$ |
248.0 |
|
Purchases of property, plant and equipment |
|
(46.9 |
) |
|
|
(30.5 |
) |
|
|
(120.5 |
) |
|
|
(67.5 |
) |
Adjusted free cash flow |
$ |
12.9 |
|
|
$ |
148.0 |
|
|
$ |
25.4 |
|
|
$ |
180.5 |
|
Доходность на вложенный капитал:
Мы определяем рентабельность инвестированного капитала ("ROIC") как итоговые четыре четверти скорректированной чистой прибыли до вычета процентов и после уплаты налогов, деленные на средние итоговые пять четвертей общего инвестированного капитала. Мы определяем прибыль до вычета процентов и после уплаты налогов как скорректированную чистую прибыль плюс процентные расходы и расходы по налогу на прибыль за вычетом корректировки по налогу на прибыль. Мы определяем общий инвестированный капитал как общий долг плюс акционерный капитал за вычетом денежных средств и краткосрочных инвестиций. Мы считаем, что рентабельность инвестиций полезна для инвесторов, поскольку она количественно определяет, насколько эффективно мы получили операционный доход по сравнению с капиталом, который мы вложили в бизнес.
Наш расчет ROIC считается финансовым показателем, не относящимся к GAAP, поскольку мы рассчитываем ROIC, используя скорректированную чистую прибыль, не относящуюся к GAAP. Хотя ROIC является стандартным финансовым показателем, существует множество методов расчета ROIC компании. В результате метод, который мы используем для расчета нашей рентабельности инвестиций, может отличаться от методов, используемых другими компаниями. Этот показатель не определен GAAP и не должен рассматриваться в качестве альтернативы показателям прибыли, определенным GAAP.
В таблице ниже приведен расчет ROIC для каждого из представленных периодов.
|
Trailing Four Quarters |
||||||
|
May 29,
|
|
May 30,
|
||||
|
|
|
|
||||
|
(Dollars in millions) |
||||||
Net income |
$ |
591.9 |
|
|
$ |
291.0 |
|
|
|
|
|
||||
Numerator |
|
|
|
||||
Adjusted net income(1) |
$ |
673.1 |
|
|
$ |
346.4 |
|
Interest expense |
|
38.3 |
|
|
|
97.5 |
|
Income tax expense |
|
101.6 |
|
|
|
23.1 |
|
Adjusted net income before interest and taxes |
|
813.0 |
|
|
|
467.0 |
|
Income tax adjustment(2) |
|
(118.1 |
) |
|
|
(31.2 |
) |
Adjusted net income before interest and after taxes |
$ |
694.9 |
|
|
$ |
435.8 |
|
| _____________ | ||
(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 trailing four quarters effective tax rate, excluding discrete costs and benefits. |
|
|
Average Trailing Five Quarters |
||||||
|
May 29,
|
|
May 30,
|
||||
|
|
|
|
||||
|
(Dollars in millions) |
||||||
Denominator |
|
|
|
||||
Total debt, including operating lease liabilities |
$ |
2,298.5 |
|
|
$ |
2,739.3 |
|
Shareholders' equity |
|
1,632.3 |
|
|
|
1,299.4 |
|
Cash and Short-term investments |
|
(1,033.6 |
) |
|
|
(1,586.0 |
) |
Total invested Capital |
$ |
2,897.2 |
|
|
$ |
2,452.7 |
|
|
|
|
|
||||
Net income to Total invested capital |
|
20.4 |
% |
|
|
11.9 |
% |
Return on Invested Capital |
|
24.0 |
% |
|
|
17.8 |
% |
Постоянная валюта:
Мы рассчитываем суммы в постоянной валюте путем пересчета сумм в местной валюте за период сравнения по фактическим обменным курсам за текущий период.
В таблице ниже представлен расчет чистой выручки для каждого из наших операционных сегментов на основе постоянной валюты за периоды сравнения за предыдущий год, применимые к трехмесячным и шестимесячным периодам, закончившимся 29 мая 2022 года:
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
May 29,
|
|
May 30,
|
|
% Increase |
|
May 29,
|
|
May 30,
|
|
% Increase |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
(Dollars in millions) |
||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||
Total net revenues |
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
$ |
1,471.1 |
|
$ |
1,276.0 |
|
|
15.3 |
% |
|
$ |
3,062.7 |
|
$ |
2,581.6 |
|
|
18.6 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
(47.3 |
) |
|
* |
|
|
— |
|
|
(85.6 |
) |
|
* |
||
Constant-currency net revenues |
$ |
1,471.1 |
|
$ |
1,228.7 |
|
|
19.7 |
% |
|
$ |
3,062.7 |
|
$ |
2,496.0 |
|
|
22.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Americas |
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
$ |
776.1 |
|
$ |
661.4 |
|
|
17.3 |
% |
|
$ |
1,541.9 |
|
$ |
1,267.6 |
|
|
21.6 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
(0.6 |
) |
|
* |
|
|
— |
|
|
(3.1 |
) |
|
* |
||
Constant-currency net revenues - Americas |
$ |
776.1 |
|
$ |
660.8 |
|
|
17.4 |
% |
|
$ |
1,541.9 |
|
$ |
1,264.5 |
|
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Europe |
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
$ |
367.1 |
|
$ |
354.9 |
|
|
3.4 |
% |
|
$ |
836.5 |
|
$ |
771.6 |
|
|
8.4 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
(36.1 |
) |
|
* |
|
|
— |
|
|
(64.0 |
) |
|
* |
||
Constant-currency net revenues - Europe |
$ |
367.1 |
|
$ |
318.8 |
|
|
15.1 |
% |
|
$ |
836.5 |
|
$ |
707.6 |
|
|
18.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Asia |
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
$ |
221.8 |
|
$ |
191.8 |
|
|
15.6 |
% |
|
$ |
480.3 |
|
$ |
424.7 |
|
|
13.1 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
(8.5 |
) |
|
* |
|
|
— |
|
|
(14.2 |
) |
|
* |
||
Constant-currency net revenues - Asia |
$ |
221.8 |
|
$ |
183.3 |
|
|
21.0 |
% |
|
$ |
480.3 |
|
$ |
410.5 |
|
|
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other Brands |
|
|
|
|
|
|
|
|
|
|
|
||||||||
As reported |
$ |
106.1 |
|
$ |
67.9 |
|
|
56.3 |
% |
|
$ |
204.0 |
|
$ |
117.7 |
|
|
73.3 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
(2.1 |
) |
|
* |
|
|
— |
|
|
(4.3 |
) |
|
* |
||
Constant-currency net revenues - Other Brands |
$ |
106.1 |
|
$ |
65.8 |
|
|
61.3 |
% |
|
$ |
204.0 |
|
$ |
113.4 |
|
|
79.9 |
% |
| _____________ | ||
* |
Not meaningful |
|
Constant-Currency Adjusted EBIT: |
|||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
May 29,
|
|
May 30,
|
|
% Increase |
|
May 29,
|
|
May 30,
|
|
% Increase |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Dollars in millions) |
||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||
Adjusted EBIT(1) |
$ |
145.4 |
|
|
$ |
114.6 |
|
|
26.9 |
% |
|
$ |
383.2 |
|
|
$ |
288.6 |
|
|
32.8 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
|
(8.2 |
) |
|
* |
|
|
— |
|
|
|
(18.0 |
) |
|
* |
||
Constant-currency Adjusted EBIT |
$ |
145.4 |
|
|
$ |
106.4 |
|
|
36.7 |
% |
|
$ |
383.2 |
|
|
$ |
270.6 |
|
|
41.6 |
% |
Constant-currency Adjusted EBIT margin(2) |
|
9.9 |
% |
|
|
8.7 |
% |
|
|
|
|
12.5 |
% |
|
|
10.8 |
% |
|
|
||
| _____________ | ||
(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: |
|||||||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
May 29,
|
|
May 30,
|
|
% Increase |
|
May 29,
|
|
May 30,
|
|
% Increase |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
(Dollars in millions, except per share amounts) |
||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||
Adjusted net income (1) |
$ |
116.7 |
|
|
$ |
93.4 |
|
|
24.9 |
% |
|
$ |
305.9 |
|
|
$ |
233.7 |
|
|
30.9 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
|
(7.9 |
) |
|
* |
|
|
— |
|
|
|
(16.0 |
) |
|
* |
||
Constant-currency Adjusted net income |
$ |
116.7 |
|
|
$ |
85.5 |
|
|
36.5 |
% |
|
$ |
305.9 |
|
|
$ |
217.7 |
|
|
40.5 |
% |
Constant-currency Adjusted net income margin(2) |
|
7.9 |
% |
|
|
7.0 |
% |
|
|
|
|
10.0 |
% |
|
|
8.7 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted diluted earnings per share |
$ |
0.29 |
|
|
$ |
0.23 |
|
|
26.1 |
% |
|
$ |
0.75 |
|
|
$ |
0.57 |
|
|
31.6 |
% |
Impact of foreign currency exchange rates |
|
— |
|
|
|
(0.02 |
) |
|
* |
|
|
— |
|
|
|
(0.04 |
) |
|
* |
||
Constant-currency Adjusted diluted earnings per share |
$ |
0.29 |
|
|
$ |
0.21 |
|
|
38.1 |
% |
|
$ |
0.75 |
|
|
$ |
0.53 |
|
|
41.5 |
% |
| _____________ | ||
(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 |
|
