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Levi Strauss Q1 revenue ahead of estimates

By Huw Hughes

Apr 7, 2022

Management

Image: Levi's investor relations website

Levi Strauss has reported robust revenue growth in the first quarter of the year as demand for its denim products remained strong globally.

In the quarter ended February 27, the US fashion giant made net revenue of 1.6 billion dollars, up 22 percent compared to a year earlier - or up 26 percent on a constant-currency basis.

That was higher than analysts' estimate of 1.55 billion dollars, according to IBES data from Refinitiv.

The company reported growth across all geographical segments.

Breaking it down by channel, direct-to-consumer sales were up 35 percent year-over-year thanks to a 48 percent increase in company-operated stores and a 10 percent increase in e-commerce. Meanwhile, wholesale sales were up 15 percent from a year ago.

The company said revenue through its digital channels grew 16 percent and represented around 25 percent of Q1 net revenue.

Supply chain issues

“We started the year with strong consumer demand and solid momentum across geographies, channels and categories,” president and CEO Chip Bergh told investors.

The robust growth came despite supply chain disruption cutting approximately 60 million dollars off its total revenue, the company said.

Bergh continued: “Our teams’ disciplined execution of our strategic priorities enabled us to deliver strong top and bottom-line growth as we capitalize on structural tailwinds and successfully manage a dynamic operating environment.

“The strength of our brands and strategy position us to deliver sustainable growth well into the future.”

Net income for the quarter was 196 million dollars, up from 143 million dollars a year earlier.

The company reaffirmed its full-year outlook “despite the incremental headwinds from ongoing macro challenges”.

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