Contrary to analysts’ expectations of 1 per cent loss, denim company Levi Strauss posted a 3 per cent rise in revenues from continuing operations to $1.53 billion during Q1, FY25.
This excluded the sales from its brand Dockers, shows data compiled by LSEG.
A wholesale brand, Levi prioritises growth in its DTC channel as multi-brand retailers continue to struggle. Betting on steady demand for its denims and a diverse supply chain to navigate an escalating trade war that has hit footwear and apparel retailers, the company maintained its full-year forecast.
Similar to that experienced by rivals such as Abercrombie & Fitch and Gap, demand for wide-legged and skinny jeans by the company stabilized, despite shoppers being selective in spending on discretionary items. The company’s gross margin increased 330 basis points to 62.1 per cent during the quarter from 58.8 per cent in Q4, FY24. This growth was driven by lower product costs and a strong direct-to-consumer channel.
To streamline its operations, Levi plans to sell its brand Dockers, which has seen contracting demand in recent quarters. The company maintained its organic net revenue forecasts for fiscal 2025 as these remained umimpacted from the recently announced tariffs.
Though the company continues to operate in an uncertain environment, its global footprint, strong margin structure, and agile supply chain position it to navigate the balance of the year and beyond, says Michelle Gass, CEO, Levi Strauss.
