Levi Strauss & Co. Files 10-Q for Period Ending February 25, 2024

TL;DR

<b>Levi Strauss & Co. has filed its quarterly report (10-Q) for the period ending February 25, 2024, detailing financial performance and position.</b>

AI Summary

LEVI STRAUSS & CO (LEVI) filed a Quarterly Report (10-Q) with the SEC on April 3, 2024. Levi Strauss & Co. filed a 10-Q report for the period ending February 25, 2024. The filing covers the company's financial performance and position. Key financial statement data, including assets and liabilities, are presented. Information on equity components like common stock and retained earnings is detailed. Fair value measurements for recurring items are disclosed for February 25, 2024, and November 26, 2023.

Why It Matters

For investors and stakeholders tracking LEVI STRAUSS & CO, this filing contains several important signals. This filing provides investors with up-to-date information on Levi Strauss & Co.'s financial health and operational results, crucial for investment decisions. The detailed financial disclosures allow for a comprehensive understanding of the company's assets, liabilities, and equity, as well as fair value measurements.

Risk Assessment

Risk Level: low — LEVI STRAUSS & CO shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial disclosures without immediate indicators of significant new risks or positive/negative performance shifts.

Analyst Insight

Review the detailed financial statements and fair value disclosures within the 10-Q to assess Levi Strauss & Co.'s current financial standing and identify any trends.

Key Numbers

• 2024-02-25 — Reporting Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-04-03 — Filing Date (FILED AS OF DATE)
• 1201 — Fiscal Year End (FISCAL YEAR END)

Key Players & Entities

• LEVI STRAUSS & CO (company) — FILER
• LEVI (company) — tk

FAQ

Industry Context

Levi Strauss & Co. operates in the apparel industry, specifically focusing on denim and casual wear.

Regulatory Implications

The filing is made in accordance with the Securities Exchange Act of 1934, requiring public companies to submit regular financial reports.

What Investors Should Do

1. Analyze the detailed financial statements within the 10-Q for revenue, expenses, and profitability trends.
2. Examine the balance sheet to understand the company's assets, liabilities, and equity structure.
3. Review disclosures related to fair value measurements to assess the valuation of financial instruments.

Key Dates

• 2024-02-25: Period End Date — End of the reporting quarter for the 10-Q filing.
• 2024-04-03: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with a comprehensive overview of a company's financial performance during the quarter.)

Year-Over-Year Comparison

This is a standard 10-Q filing for the specified period. No comparative data from a prior filing is directly presented in the provided text.

Key Financial Figures

• $0.001 — which registered Class A Common Stock, $0.001 par value per share LEVI New York Stock

Filing Documents

• lvis-20240225.htm (10-Q) — 1415KB
• lvis02252024ex-101.htm (EX-10.1) — 10KB
• lvis02252024ex-102.htm (EX-10.2) — 6KB
• lvis02252024ex-311.htm (EX-31.1) — 9KB
• lvis02252024ex-312.htm (EX-31.2) — 9KB
• lvis02252024ex-321.htm (EX-32.1) — 7KB
• 0000094845-24-000026.txt (&nbsp;) — 6286KB
• lvis-20240225.xsd (EX-101.SCH) — 35KB
• lvis-20240225_cal.xml (EX-101.CAL) — 66KB
• lvis-20240225_def.xml (EX-101.DEF) — 186KB
• lvis-20240225_lab.xml (EX-101.LAB) — 512KB
• lvis-20240225_pre.xml (EX-101.PRE) — 350KB
• lvis-20240225_htm.xml (XML) — 893KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Consolidated Financial Statements (unaudited)

Item 1. Consolidated Financial Statements (unaudited): Consolidated Balance Sheets as of February 25, 2024 and November 26, 2023 3 Consolidated Statements of Operations for the Three Months Ended February 25, 2024 and February 26, 2023 4 Consolidated Statements of Comprehensive Income for the Three Months Ended February 25, 2024 and February 26, 2023 5 Consolidated Statements of Stockholders' Equity for the Three Months Ended February 25, 2024 and February 26, 2023 6 Consolidated Statements of Cash Flows for the Three Months Ended February 25, 2024 and February 26, 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 48

Controls and Procedures

Item 4. Controls and Procedures 48

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 49

Risk Factors

Item 1A. Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 50

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 50

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 50

Other Information

Item 5. Other Information 51

Exhibits

Item 6. Exhibits 52 SIGNATURE 53 WHERE YOU CAN FIND MORE INFORMATION Investors and others should note that we announce material financial information to our investors using our corporate website, press releases, SEC filings and public conference calls and webcasts. We also use these channels and social media channels as a means of disclosing information about our company, products, planned financial and other announcements, attendance at upcoming investor and industry conferences and other matters, as well as for complying with our disclosure obligations under Regulation FD promulgated under the Securities Exchange Act of 1934, as amended. Our corporate website and social media channels can be found at: our Investor Relations page (http://investors.levistrauss.com); our Twitter account (https://twitter.com/LeviStraussCo); our company blog (https://www.levistrauss.com/unzipped-blog/); our Facebook page (https://www.facebook.com/levistraussco/); our LinkedIn page (https://www.linkedin.com/company/levi-strauss-&-co-); our Instagram page (https://www.instagram.com/levistraussco/); and our YouTube channel (https://www.youtube.com/user/levistraussvideo). The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to following our press releases, SEC filings and public conference calls and webcasts. This list may be updated from time to time. The information we post through these channels is not a part of this Quarterly Report. Table of Contents

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

CONSOLIDATED FINANCIAL STATEMENTS

Item 1. CONSOLIDATED FINANCIAL STATEMENTS LEVI STRAUSS & CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) February 25, 2024 November 26, 2023 (Dollars in millions) ASSETS Current Assets: Cash and cash equivalents $ 516.7 $ 398.8 Trade receivables, net 661.6 752.7 Inventories 1,150.4 1,290.1 Other current assets 196.1 196.0 Total current assets 2,524.8 2,637.6 Property, plant and equipment, net 673.8 680.7 Goodwill 296.1 303.7 Other intangible assets, net 266.2 267.6 Deferred tax assets, net 761.7 729.5 Operating lease right-of-use assets, net 1,021.5 1,033.9 Other non-current assets 417.4 400.6 Total assets $ 5,961.5 $ 6,053.6 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable 497.6 567.9 Accrued salaries, wages and employee benefits 180.9 214.9 Accrued sales returns and allowances 172.5 189.8 Short-term operating lease liabilities 245.6 245.5 Other accrued liabilities 673.8 569.4 Total current liabilities 1,770.4 1,787.5 Long-term debt 1,006.0 1,009.4 Long-term operating lease liabilities 897.8 913.1 Long-term employee related benefits and other liabilities 311.2 297.2 Total liabilities 3,985.4 4,007.2 Commitments and contingencies Stockholders' Equity: Common stock — $ 0.001 par value; 1,200,000,000 Class A shares authorized, 102,412,794 shares and 102,104,670 shares issued and outstanding as of February 25, 2024 and November 26, 2023, respectively; and 422,000,000 Class B shares authorized, 295,616,438 shares and 295,243,353 shares issued and outstanding, as of February 25, 2024 and November 26, 2023, respectively 0.4 0.4 Additional paid-in capital 692.3 686.7 Accumulated other comprehensive loss ( 383.3 ) ( 390.9 ) Retained earnings 1,666.7 1,750.2 Total stockholders' equity 1,976.1 2,046.4 Total liabilities and stockholders' equity $ 5,961.5 $ 6,053.6 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents LEVI STRAU

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTERLY PERIOD ENDED FEBRUARY 25, 2024 NOTE 1: SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Levi Strauss & Co. (the "Company") is one of the world's largest brand-name apparel companies. The Company designs, markets and sells – directly or through third parties and licensees – products that include jeans, casual and dress pants, tops, shorts, skirts, dresses, jackets, activewear, footwear and related accessories for men, women and children around the world under the Levi's , Signature by Levi Strauss & Co., Denizen , Dockers and Beyond Yoga brands. Basis of Presentation and Principles of Consolidation The interim consolidated financial statements of the Company and its wholly-owned and majority-owned foreign and domestic subsidiaries, including the notes, have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") applicable to interim period financial statements and do not include all of the information and disclosures required by generally accepted accounting principles in the United States ("U.S. GAAP") for complete financial statements. In the opinion of management, all adjustments necessary for a fair statement of the financial position and the results of operations for the periods presented have been included. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended November 26, 2023, included in the Company's 2023 Annual Report on Form 10-K. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions have been eliminated. The results of operations for the three months ended February 25, 2024 may not be indicative of the results to be expected for any other interim period or the year ending December 1, 2024. The Company's fiscal year ends on

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued) FOR THE QUARTERLY PERIOD ENDED FEBRUARY 25, 2024 The Company's obligations to its suppliers, including amounts due and scheduled payment dates, are not impacted by the supplier's participation in these arrangements. The Company's payment terms to the financial institutions, including the timing and amount of payments, are based on the original supplier invoices. Our current payment terms with a majority of our suppliers are typically 90 days. The Company has not pledged any assets and does not provide guarantees under the supplier finance program. As such, the outstanding payment obligations under the Company's supplier finance program are included within Accounts Payable in the Consolidated Balance Sheets. The Company's outstanding payment obligations under this program were $ 105.1 million as of February 25, 2024 and $ 113.4 million as of November 26, 2023. Share Repurchases During the three months ended February 25, 2024, the Company repurchased 1.5 million shares for $ 24.9 million, plus broker's commissions, in the open market. This equates to an average repurchase price of approximately $ 17.15 per share. During the three months ended February 26, 2023, the Company repurchased 0.5 million shares for $ 8.1 million, plus broker's commissions, in the open market. This equates to an average repurchase price of approximately $ 17.97 per share. The Company accounts for share repurchases by charging entirely to retained earnings the excess of the repurchase price over the repurchased Class A common stock's par value. All repurchased shares are retired and become authorized but unissued shares. The Company accrues for the shares purchased under the share repurchase plan based on the trade date. The Company may terminate or limit the share repurchase program at any time. Reclassification Certain amounts on the consolidated balance sheets, consolidated statements of operations and statements of cash flo

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued) FOR THE QUARTERLY PERIOD ENDED FEBRUARY 25, 2024 NOTE 2: FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the Company's financial instruments that are carried at fair value: February 25, 2024 November 26, 2023 Fair Value Estimated Using Fair Value Estimated Using Fair Value Level 1 Inputs (1) Level 2 Inputs (2) Fair Value Level 1 Inputs (1) Level 2 Inputs (2) (Dollars in millions) Financial assets carried at fair value Rabbi trust assets $ 85.4 $ 85.4 $ — $ 78.7 $ 78.7 $ — Derivative instruments (3) 10.5 — 10.5 13.8 — 13.8 Total $ 95.9 $ 85.4 $ 10.5 $ 92.5 $ 78.7 $ 13.8 Financial liabilities carried at fair value Derivative instruments (3) 8.0 — 8.0 9.1 — 9.1 Total $ 8.0 $ — $ 8.0 $ 9.1 $ — $ 9.1 _____________ (1) Fair values estimated using Level 1 inputs are inputs that consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of marketable equity securities. (2) Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly, and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices. (3) The Company's cash flow hedges are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis. Refer to Note 3 for more information. The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company's financial instruments that are

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued) FOR THE QUARTERLY PERIOD ENDED FEBRUARY 25, 2024 NOTE 3: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As of February 25, 2024, the Company had forward foreign exchange contracts derivatives to buy $ 663.6 million and to sell $ 506.7 million in various foreign currencies. These contracts are at various exchange rates and expire at various dates through February 2025. The table below provides data about the carrying values of derivative and non-derivative instruments: February 25, 2024 November 26, 2023 Assets (Liabilities) Derivative Net Carrying Value Assets (Liabilities) Derivative Net Carrying Value Carrying Value Carrying Value Carrying Value Carrying Value (Dollars in millions) Derivatives designated as hedging instruments Foreign exchange risk cash flow hedges (1) $ 7.2 $ — $ 7.2 $ 6.0 $ — $ 6.0 Foreign exchange risk cash flow hedges (2) — ( 6.9 ) ( 6.9 ) — ( 7.1 ) ( 7.1 ) Total $ 7.2 $ ( 6.9 ) $ 6.0 $ ( 7.1 ) Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) $ 10.5 $ ( 7.2 ) $ 3.3 $ 13.8 $ ( 6.0 ) $ 7.8 Forward foreign exchange contracts (2) 6.9 ( 8.0 ) ( 1.1 ) 7.1 ( 9.1 ) ( 2.0 ) Total $ 17.4 $ ( 15.2 ) $ 20.9 $ ( 15.1 ) Non-derivatives designated as hedging instruments Euro senior notes $ — $ ( 514.0 ) $ — $ ( 517.8 ) _____________ (1) Included in "Other current assets" or "Other non-current assets" on the Company's consolidated balance sheets. (2) Included in "Other accrued liabilities" or "Long-term employee related benefits and other liabilities" on the Company's consolidated balance sheets. The Company's over-the-counter forward foreign exchange contracts are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis; however, the Company records the fair value on a gross basis on its consolidated balance sh

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued) FOR THE QUARTERLY PERIOD ENDED FEBRUARY 25, 2024 The table below provides data about the amount of gains and losses related to derivative instruments and non-derivative instruments designated as cash flow and net investment hedges included in "Accumulated other comprehensive loss" ("AOCL") on the Company's consolidated balance sheets, and in "Other expense, net" in the Company's consolidated statements of operations: Amount of (Loss) Gain Recognized in AOCL (Effective Portion) Amount of Gain (Loss) Reclassified from AOCL into Net (Loss) Income (1) As of February 25, 2024 As of November 26, 2023 Three Months Ended February 25, 2024 February 26, 2023 (Dollars in millions) Foreign exchange risk contracts $ ( 5.0 ) $ ( 15.0 ) $ ( 11.3 ) $ 11.1 Realized forward foreign exchange swaps (2) 4.6 4.6 — — Yen-denominated Eurobonds ( 19.8 ) ( 19.8 ) — — Euro-denominated senior notes ( 27.0 ) ( 30.8 ) — — Cumulative income taxes 16.9 19.0 — — Total $ ( 30.3 ) $ ( 42.0 ) _____________ (1) Amounts reclassified from AOCL were classified as net revenues or costs of goods sold on the consolidated statements of operations. (2) Prior to and during 2005, the Company used foreign exchange currency swaps to hedge the net investment in its foreign operations. For hedges that qualified for hedge accounting, the net gains were included in AOCL and are not reclassified to earnings until the related net investment position has been liquidated. There was no hedge ineffectiveness for the three months ended February 25, 2024. Within the next 12 months, a $ 5.9 million loss from cash flow hedges is expected to be reclassified from AOCL into net (loss) income. The table below presents the effects of the Company's cash flow hedges of foreign exchange risk contracts on the consolidated statements of operations: Three Months Ended February 25, 2024 February 26, 2023 (Dollars in millions) Amount of (Loss) Ga

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued) FOR THE QUARTERLY PERIOD ENDED FEBRUARY 25, 2024 The table below provides data about the amount of gains and losses related to derivatives instruments included in "Other expense, net" in the Company's consolidated statements of operations: Three Months Ended February 25, 2024 February 26, 2023 (Dollars in millions) Realized gain (1) $ 2.9 $ 9.4 Unrealized loss ( 3.0 ) ( 5.6 ) Total $ ( 0.1 ) $ 3.8 _____________ (1) Realized gains related to derivatives instruments were classified as Other, net on the Company's consolidated statements of cash flows. NOTE 4: OTHER ACCRUED LIABILITIES The following ta

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