On Thursday, LEVI.US reported financial results for the second quarter ended May 30, 2021. At one point, the company rose more than 4 per cent in after-hours trading because of better-than-expected second-quarter results and improved revenue guidance for the second half of 2021.

The company reported second-quarter net income of $1.3 billion, up 156% from the second quarter of 2020 and exceeding analysts' expectations of $1.21 billion. The company's e-commerce growth rate has accelerated continuously since the first quarter, increasing by 42% compared with the same period last year, while net income through all digital channels increased by 75% compared with the second quarter of 2020.

The company's sales in the United States and China have exceeded 2019 levels, but in Europe, sales have been falling for two years as stores linked to the COVID-19 epidemic continue to close. During this period, about 1/3 of Levi's European stores and 17% of global stores were closed.

Second-quarter net income was $65 million, exceeding analysts' expectations, with adjusted net income of $93 million, diluted earnings of 16 cents per share and adjusted diluted earnings of 23 cents per share. The third-quarter dividend increased from $0.06 per share to $0.08 per share.

The company's gross profit margin reached a record 58.8% in the second quarter, the adjusted gross profit margin reached a record 58.2%, the operating profit margin was 8.3%, and the adjusted EBIT profit margin expanded to a record 9%.

The company expects reported net income to increase by 28% to 29% in the second half of 2021 compared with the second half of 2020. Adjusted diluted earnings per share are expected to be 72 to 76 cents, resulting in adjusted diluted earnings per share of $1.29 to $1.33 for the full year.