Levi Strauss & Co. Files Q2 2024 10-Q Report

TL;DR

Levi's Q2 2024 10-Q is in. Check financials.

AI Summary

Levi Strauss & Co. filed its 10-Q for the period ending May 26, 2024. The filing details financial performance and operational updates for the company. Specific financial figures and operational metrics are provided within the report, which is a standard disclosure for publicly traded companies.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational performance of Levi Strauss & Co., influencing investment decisions and market perception.

Risk Assessment

Risk Level: medium — The filing is a routine disclosure, but the apparel industry can be subject to fluctuating consumer demand and supply chain disruptions.

Key Numbers

• 2024-05-26 — Reporting Period End Date (Indicates the end of the financial quarter being reported.)
• 20240626 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• LEVI STRAUSS & CO (company) — Filer of the 10-Q report
• 2024-05-26 (date) — End of the reporting period
• 1155 BATTERY ST (address) — Company's business street address
• SAN FRANCISCO (location) — Company's business city
• 94111 (zip_code) — Company's business zip code
• 4155016000 (phone_number) — Company's business phone number

FAQ

Key Financial Figures

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

Filing Documents

• lvis-20240526.htm (10-Q) — 2009KB
• lvis05262024ex-311.htm (EX-31.1) — 9KB
• lvis05262024ex-312.htm (EX-31.2) — 9KB
• lvis05262024ex-321.htm (EX-32.1) — 7KB
• 0000094845-24-000045.txt ( ) — 7867KB
• lvis-20240526.xsd (EX-101.SCH) — 35KB
• lvis-20240526_cal.xml (EX-101.CAL) — 66KB
• lvis-20240526_def.xml (EX-101.DEF) — 200KB
• lvis-20240526_lab.xml (EX-101.LAB) — 547KB
• lvis-20240526_pre.xml (EX-101.PRE) — 373KB
• lvis-20240526_htm.xml (XML) — 1321KB

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

Consolidated Financial Statements (unaudited)

Item 1. Consolidated Financial Statements (unaudited): Consolidated Balance Sheets as of May 26, 2024 and November 26, 2023 3 Consolidated Statements of Operations for the Three and Six Months Ended May 26, 2024 and May 28, 2023 4 Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended May 26, 2024 and May 28, 2023 5 Consolidated Statements of Stockholders' Equity for the Three and Six Months Ended May 26, 2024 and May 28, 2023 6 Consolidated Statements of Cash Flows for the Six Months Ended May 26, 2024 and May 28, 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

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 23

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 53

Controls and Procedures

Item 4. Controls and Procedures 53

— OTHER INFORMATION

PART II — OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 54

Risk Factors

Item 1A. Risk Factors 54

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 55

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 55

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 55

Other Information

Item 5. Other Information 1

Exhibits

Item 6. Exhibits 56 SIGNATURE 57 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) May 26, 2024 November 26, 2023 (Dollars in millions) ASSETS Current Assets: Cash and cash equivalents $ 641.4 $ 398.8 Trade receivables, net 581.8 752.7 Inventories 1,220.0 1,290.1 Other current assets 206.8 196.0 Total current assets 2,650.0 2,637.6 Property, plant and equipment, net 686.4 680.7 Goodwill 317.6 303.7 Other intangible assets, net 275.4 267.6 Deferred tax assets, net 774.2 729.5 Operating lease right-of-use assets, net 1,062.7 1,033.9 Other non-current assets 419.6 400.6 Total assets $ 6,185.9 $ 6,053.6 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable 623.1 567.9 Accrued salaries, wages and employee benefits 205.7 214.9 Accrued sales returns and allowances 165.8 189.8 Short-term operating lease liabilities 246.0 245.5 Other accrued liabilities 628.5 569.4 Total current liabilities 1,869.1 1,787.5 Long-term debt 1,006.0 1,009.4 Long-term operating lease liabilities 937.8 913.1 Long-term employee related benefits and other liabilities 419.3 297.2 Total liabilities 4,232.2 4,007.2 Commitments and contingencies Stockholders' Equity: Common stock — $ 0.001 par value; 1,200,000,000 Class A shares authorized, 104,598,166 shares and 102,104,670 shares issued and outstanding as of May 26, 2024 and November 26, 2023, respectively; and 422,000,000 Class B shares authorized, 292,825,765 shares and 295,243,353 shares issued and outstanding, as of May 26, 2024 and November 26, 2023, respectively 0.4 0.4 Additional paid-in capital 708.0 686.7 Retained earnings 1,620.0 1,750.2 Accumulated other comprehensive loss ( 374.7 ) ( 390.9 ) Total stockholders' equity 1,953.7 2,046.4 Total liabilities and stockholders' equity $ 6,185.9 $ 6,053.6 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents LEVI STRAUSS & CO. AND SU

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTERLY PERIOD ENDED MAY 26, 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 and six months ended May 26, 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 th

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued) FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024 related benefits and other liabilities" and the proceeds are recorded as an operating activity in "Net change in operating assets and liabilities" on the consolidated statements of cash flows. Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may be impaired. Impairment losses are measured and recorded for the excess of carrying value over its fair value, estimated based on expected future cash flows and other quantitative and qualitative factors. Property, plant and equipment, net includes accumulated depreciation of $ 1.4 billion and $ 1.3 billion as of May 26, 2024 and November 26, 2023, respectively. Supplier Finance Program The Company adopted Accounting Standards Update No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations in the first quarter of 2024. The Company offers a supplier financing program which enables the Company's suppliers, at their sole discretion, to sell their receivables (i.e., the Company's payment obligations to suppliers) to a financial institution on a non-recourse basis in order to be paid earlier than current payment terms provide. 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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued) FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024 NOTE 2: FAIR VALUE OF FINANCIAL INSTRUMENTS The following table presents the Company's financial instruments that are carried at fair value: May 26, 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 $ 88.0 $ 88.0 $ — $ 78.7 $ 78.7 $ — Derivative instruments (3) 7.0 — 7.0 13.8 — 13.8 Total $ 95.0 $ 88.0 $ 7.0 $ 92.5 $ 78.7 $ 13.8 Financial liabilities carried at fair value Derivative instruments (3) 9.8 — 9.8 9.1 — 9.1 Total $ 9.8 $ — $ 9.8 $ 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 carried at ad

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued) FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024 NOTE 3: DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As of May 26, 2024, the Company had forward foreign exchange contracts derivatives to buy $ 630.4 million and to sell $ 535.7 million in various foreign currencies. These contracts are at various exchange rates and expire at various dates through May 2025. The table below provides data about the carrying values of derivative and non-derivative instruments: May 26, 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) $ 6.2 $ — $ 6.2 $ 6.0 $ — $ 6.0 Foreign exchange risk cash flow hedges (2) — ( 8.2 ) ( 8.2 ) — ( 7.1 ) ( 7.1 ) Total $ 6.2 $ ( 8.2 ) $ 6.0 $ ( 7.1 ) Derivatives not designated as hedging instruments Forward foreign exchange contracts (1) $ 7.0 $ ( 6.2 ) $ 0.8 $ 13.8 $ ( 6.0 ) $ 7.8 Forward foreign exchange contracts (2) 8.2 ( 9.9 ) ( 1.6 ) 7.1 ( 9.1 ) ( 2.0 ) Total $ 15.2 $ ( 16.1 ) $ 20.9 $ ( 15.1 ) Non-derivatives designated as hedging instruments Euro senior notes $ — $ ( 513.7 ) $ — $ ( 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 sheets based on maturit

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued) FOR THE QUARTERLY PERIOD ENDED MAY 26, 2024 T

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