Levi Strauss & Co (NYSE:LEVI) Q2 2019 Earnings Conference Call Transcript

Jul 09, 2019 • 05:00 pm ET


Levi Strauss & Co (NYSE:LEVI) Q2 2019 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to Levi Strauss & Company Second Quarter Earnings Conference Call for the period ending May 26, 2019. (Operator Instructions)

This conference is being recorded and may not be reproduced in whole or in part without written permission from the company. A telephone replay will be available two hours after the completion of this call through July 15, 2019. Please use conference ID 8261329. This conference call also is being broadcast over the Internet and a replay of the webcast will be accessible for one quarter on the company's website, levistrauss.com

It is -- I would now like to turn the call over to Aida Orphan, Senior Director, Investor Relations and Risk Management at Levi Strauss & Company.

Aida Orphan

Good afternoon, and welcome to our quarterly conference call. I'm pleased to introduce members of the Levi's Strauss & Company management team. Chip Bergh, President and CEO; and Harmit Singh, Executive Vice President and CFO.

Before we begin, let me briefly remind you of a few items. Our discussion today may include forward-looking statements, including statements regarding our strategies and expected financial and operating performance. Although these statements reflect the best judgments of our senior management, they involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the statements. As more fully described in our Annual Report on Form 10-K, our registration statements, today's earnings press release and our other filings with the SEC, all of which are available on our website at levistrauss.com. We disclaim any responsibility to update our forward-looking statements, other unknown or unpredictable factors also could have material adverse effects on our future results, performance or achievements.

We provide information on our website about how we compile various measures used to describe our business performance. Participants on today's call may discuss non-GAAP financial measures, reconciliations and descriptions of our non-GAAP financial measures are available in the Investors section of our website as well as in today's earnings press release.

Finally, today we filed our quarterly financial report on Form 10-Q with the SEC, which is now available on our website.

Now, I'll turn over the call to Chip Bergh.

Charles Victor Bergh

Thank you, Aida, and thanks everyone for joining us today. Against a difficult backdrop, we had a strong quarter with revenues of $1.3 billion, up 5% from prior year on a reported basis and up 9% in constant currency. This brings year-to-date revenue growth to 10% in constant currency. Growth continued to be broad based across regions and brands in the second quarter, reflecting the strength of our more diversified portfolio.

Here are some of the key themes from the quarter, all in constant currency and versus prior year. Each of our regions grew revenues and profits with Europe and Asia growing revenues double-digits, all four brands grew. The men's business grew 6% and the women's business grew 16%; bottoms were up 8%; tops were up 14%; and Global Wholesale was up 6% while our