Levi Gains On Raising Dividend, More Positive First Half Outlook

Levi Strauss (NYSE:LEVI) shares were up 4% in Friday’s premarket after the company said it will raise its quarterly dividend and also raised its guidance for the first half.

The company will pay 6c a share on or after May 25 as against 4c in the first quarter. The company, declaring its December-February earnings Thursday, said it will reassess dividend payments for future quarters as circumstances evolve.

The jeans maker raised its fiscal first-half 2021 reported net revenue outlook to 24%-25% growth on the year and raised its adjusted EPS estimate to a range of 41c-42c. Adjusted diluted EPS in the quarter ended February was 34c

The optimistic guidance came despite a 13% decline in revenue to $1.30 billion in the three months through February.

The company’s outlook assumes no significant worsening of the Covid-19 pandemic or dramatic incremental closure of global economies.

Telsey Advisory analyst Dana Telsey today maintained a ‘buy’ on the company’s shares, setting a price target of $32, 28% above its closing Thursday.