Levi's stock soars 20% after earnings beat estimates thanks to Beyoncé's shout-outs

• Shares of Levi Strauss & Co. soared to 20% on Thursday after the company reported strong first-quarter results.

• "Jeans are on the rise," said Michelle Gass, Levi Strauss' chief executive officer, on the company's financial conference call.

• On the heels of Levi's success, Beyonce released a new song titled "Levii's Jeans".

Shares of Levi Strauss & Co. soared 20% after the company reported solid first-quarter earnings Thursday, 鈥竝糹ke increased exposure to a new Beyoncé song.

Although the jeans maker said first-quarter sales were down about 8% from a year ago, recent cost-cutting measures helped the company realize better-than-expected profits.

Below are the key figures:

• Revenue:US$1.56 billion, compared to analyst estimates of US$1.55 billion.

• Adjusted earnings per share0.26 vs. analyst estimate of $0.21

The company raised its full-year 2024 adjusted EPS estimate to $1.17 to $1.27, slightly higher than its previous estimate of $1.15 to $1.25.

"I would like to say that denim is at an important moment, and the Levi's brand is at a strong moment globally," said Michelle Gass, Levi Strauss' chief executive officer, on the company's earnings call.

The company said the launch of new products such as denim skirts and non-denim jeans helped boost sales. Beyonce's new song "Levii's Jeans" has increased the company's exposure, which may not have affected the sales trend either.

One of the key features of the Levi's brand is that we invest heavily in making sure that the Levi's brand is always at the center of our culture," said Gass, responding to an analyst's question about whether Beyonce's new song had boosted sales. Responding to an analyst's question about whether Beyonce's new song had boosted sales, Gass said, "I don't think there's any better evidence or proof than a culture shaper like Beyonce naming a song after us.

Mary Ross Gilbert, a senior industry analyst at Bloomberg Intelligence, said in a note Wednesday that Beyoncé's new song, a top 20 hit on Apple Music's U.S. Top 100 playlist, "may also have an additional sales boosting effect."

In recognition of the song, Levi Strauss changed his Instagram name to Levii's to match the spelling of Beyoncé's new song.

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