Levi Strauss (NYSE:LEVI) updated its full-year earnings forecast upwards after announcing first-quarter results that exceeded analysts’ predictions, attributing the success to an increase in margins following cost reductions. The company’s shares rose over 7% after-hours today. Levi Strauss now anticipates earnings per share to range between $1.17 and $1.27, an improvement from the previously forecasted range of $1.15 to $1.25, compared to the average Wall Street expectation of $1.21.
Revenue growth projections remain unchanged at an increase of 1% to 3% year-over-year. In the first quarter, the apparel maker achieved an adjusted EPS of $0.26, down from $0.34 the previous year, with revenue decreasing to $1.56 billion from $1.69 billion. Despite the decline, these figures were above the anticipated EPS of $0.20 and revenue of $1.54 billion. A significant factor contributing to this performance was a 240 basis point rise in gross margin to 58.2%, attributed to reduced product costs and a favorable shift in the mix of products sold.