Yahoo Finance's Jared Blikre breaks down the key takeaways from Levi Strauss' Q3 earnings report.

Video Transcript

ADAM SHAPIRO: And we're watching shares of Levi Strauss climb after hours, up more than 3 and 1/2%. They've just released their quarterly earnings, and Jared Blikre is at the floor of the New York Stock Exchange to update us on what they're telling us.

JARED BLIKRE: Yeah, some decent beats, and raising their guidance as well. So, for the top line number, net revenue beat expectations slightly, coming in at $1.5 billion. That's up 36% year over year and higher-- slightly higher than the estimate of $1.48 billion from the Street, adjusted EPS coming in at $0.48. The estimate was lower by about $0.11, $0.37. So a nice beat there.

Adjusted EBIT, that was $222 million, up 93% quarter over quarter, and handily beating the estimate of $198 million. And also, they ended the quarter with cash and cash equivalents of $1.38 billion, that's up 1.7% year over year. Now here is their projection for the fourth quarter.

They're seeing net revenue growth of 20% to 21% year over year, and also, net revenue growth of 6% to 7% versus a fourth quarter of fiscal 2019. That's a real comp that matters there. Also, for the fiscal year, the full year, they are seeing adjusted EPS of $1.43 to $1.45. Previously, they saw a lower amount, $1.29 to $1.33. And then also, they have authorized a $200 million share repurchase program. So it speaks as to their relatively good liquidity situation.

I have a quote from the CEO Chip Bergh. "We delivered a strong quarter with revenue growth versus pre-pandemic 2019 levels despite a more difficult macro environment than we expected. And I think a lot of investors, shareholders on the call, are going to want to find out what's happening with their input prices. The main ingredient in pants-- well at least jeans, anyway-- is cotton, and we have cotton prices at 10-year highs right now."

So to recap here, beats on both the top and bottom line, some decent guidance here, and we're seeing that stock trade higher here in after-hours trading.

ADAM SHAPIRO: Jared, useless trivia regarding Levi jeans, denim jeans. Googled this. Back in 2016, the former CEO said, "You don't have to wash a good pair of denim jeans or blue jeans." Sounds kind of gross and he's no longer the CEO. But check it out. You can google it and you'll see it. Jared, thank you very much.