![]() While its dividend yield of 2.9% isn't particularly high, it's well-protected by a 26% payout ratio. Importantly, LEVI maintains a strong balance sheet with $1.4 billion in total liquidity and a net debt to EBITDA ratio of 1.1x. While we're just getting started, we believe there is an attractive long-term opportunity to grow the brand's presence through retail. Perhaps most exciting at the end of last month, Beyond Yoga opened its first permanent store located in Santa Monica, showcasing the brand's full array of category offerings for the first time. And we made progress in deepening our direct personalized relationships with our consumers via our global loyalty programs, which saw double-digit growth in total members and revenue.īeyond Yoga launched at 28 colleges across the country as the brand continues to build awareness and reach new consumers. Globally the Levi's app continue to achieve increased engagement with monthly active users again up double digits, along with 17% growth in revenue. Management expressed progress around nurturing and growing this important channel and around its emerging Beyond Yoga line, which contributed $22 million to net sales last quarter, during the last conference call: This channel has the potential to boost margins, as it cuts out the middle-man. It also has opportunities to grow through its direct to consumer channel, which saw 8% growth last quarter. Looking forward, LEVI should benefit globally from a re-opening in China, after abandoning restrictive zero-COVID policies. As shown below, LEVI scores an overall B grade for profitability, with EBITDA and Net Income margins that sit well above the sector median. This is reflected by gross margin falling by just 60 basis point YoY to 56.9%. Importantly, LEVI was able to largely maintain gross margin discipline in spite of commodity inflation, as it was able to pass on higher costs to consumers. Importantly, the company's hallmark Levi's brand grew 6% in constant currency, hitting a 10-year quarterly record. Meanwhile, LEVI saw respectable top line revenue growth of 7% YoY on a constant currency basis (1% growth including FX) during the third quarter, in spite of inflationary and supply chain considerations. As shown below, LEVI has had a fairly strong overall revenue growth trajectory since becoming public and has maintained a strong operating margin that currently sits above its pre-pandemic rate. operates in more than 110 countries and has a diverse product line that's more than just jeans, and over the trailing 12 months, generated $6.3 billion in total revenue. She comes from Kohl's ( KSS ) and Starbucks ( SBUX ), bringing a wealth of retail and international experience. Notably, the company recently hired a new CEO to take over in 18 months. While the company has faced its share of challenges, it has remained a leader in the denim fashion industry and is one that resonates strong with consumer globally. Levi Strauss is an iconic American company that has been producing high-quality clothing, particularly denim jeans, for well over 150 years. In this article, I highlight why value investors may want to consider this iconic brand for income and growth. This includes Levi Strauss ( NYSE: LEVI ), which as seen below, traded as high as $24 during the spring of last year before cratering to $16.84 at present, bringing its forward yield to near 3%. It pays to be choosy, however, as brands that have stood the test of time should continue to resonate with new generations of consumers. ![]() A number of fashion brands are currently trading at bargain basement prices.
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