Levi Strauss Investor Day Presentation Deck
ADJUSTED GROSS
PROFIT
We define adjusted gross profit, as gross profit excluding
COVID-19 and acquisition related inventory costs. We
define adjusted gross margin, as adjusted gross profit as a
percentage of net revenues
(Dollars in millions)
MOST COMPARABLE GAAP MEASURE
Gross profit
LEVI STRAUSS & CO.
NON-GAAP MEASURE
Gross profit
COVID-19 related inventory costs (¹)
Acquisition related charges (²)
ADJUSTED GROSS PROFIT
Adjusted gross margin
2021
$3,346.7
$3,346.7
(15.1)
3.9
$3,335.5
57.9%
2020
$2,352.9
$2,352.9
69.3
$2,422.2
54.4%
2019
$3,101.4
$3,101.4
$3,101.4
53.8%
2011
$2,292.2
$2,292.2
$2,292.2
48.1%
1. For the fiscal year ended November 28, 2021, the reductions in COVID-19 related inventory charges is primarily related to reductions in our estimate of adverse fabric purchase commitments, initially recorded in the
second quarter of 2020. For the fiscal year ended November 29, 2020, COVID-19 related inventory costs include $42.3 million of incremental inventory reserves and the recognition of adverse fabric purchase
commitments of $26.2 million.
2. Acquisition related charges include the inventory markup above historical carrying value associated with the Beyond Yoga acquisition.
©2022 Levi Strauss & Co. CONFIDENTIAL 162View entire presentation