Levi Strauss & Co (NYSE:LEVI) Q3 2019 Earnings Conference Call - Final Transcript

Oct 08, 2019 • 05:00 pm ET


Levi Strauss & Co (NYSE:LEVI) Q3 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to Levi Strauss & Company Third Quarter Earnings Conference Call for the period ending August 25th, 2019. All parties will be in a listen-only mode until the question-and-answer session, at which time instructions will follow.

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 October 14th, 2019. Please use conference ID 698596. This conference call also being broadcast over the Internet and a replay of the webcast will be accessible for one quarter on the company's website, levistrauss.com.

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 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 judgment 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 statement, 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.

Chip Bergh

Thank you, Aida, and good afternoon, and thanks to everyone for joining us here today. We delivered strong third quarter results and remain on track to achieve our full-year expectations. Revenues of $1.45 billion in the third quarter were up 4% on a reported basis and 5% on a constant currency basis. This brings year-to-date revenue growth to 8% in constant currency. Our strategy is to strengthen the Levi's brand and diversify the business beyond US wholesale and men's bottoms to faster growing markets and categories, have helped us deliver these results and offset the challenging US wholesale dynamic. Our strategies are working and we are confident in the future.

I'll briefly touch on some key highlights from our third quarter all in