Clothing retailer Levi Strauss (LEVI) has raised its quarterly dividend by 14% after posting strong financial results.
Going forward, the company known for its blue jeans will pay shareholders a distribution of $0.16 U.S. per share, up 14% from a previous dividend of $0.14 U.S.
The dividend increase gives Levi Strauss’ stock a yield of 2.50%. The company has now raised its dividend for four consecutive years after halting increases during the Covid-19 pandemic.
The San Francisco-based company announced the dividend increase along with financial results that topped Wall Street estimates.
Levi Strauss announced earnings per share (EPS) of $0.28 U.S., which beat the consensus expectation that called for $0.24 U.S.
Revenue in the period totaled $1.56 billion U.S., which topped the $1.52 billion U.S. that had been forecast on Wall Street. Sales were up 8% from a year earlier.
Management attributed the strong print to resilient consumers who are still buying clothes despite higher gas prices caused by the war in Iran.
As a result, Levi Strauss raised its guidance, saying it now expects full-year earnings per share of $1.46 U.S. to $1.52 U.S., up from $1.42 U.S. to $1.48 U.S. previously.
Levi also raised its revenue outlook, saying it now expects full-year sales to rise between 7% and 7.5%, up from a prior range of 5.5% to 6.5%.
LEVI stock has risen 26% in the last 12 months to trade at $24.37 U.S. per share.
