Levi Strauss Reports Impressive First-Quarter Results with Strong Direct-to-Consumer Growth
Levi hops over a low bar
Levi Strauss reported an 8% revenue decline in the quarter to $1.56 billion, slightly above market expectations. The company's strategic shift towards direct-to-consumer (DTC) sales led to a 7% global and 10% U.S. growth in the channel, offsetting a 9% drop in wholesale revenue.
- ERP Impact: The revenue decline was affected by a 6% negative impact from the ERP implementation and other business exits.
- Gross Margin Boost: Gross margin improved by 240 basis points to 58.2% due to cost efficiencies and product mix shifts, while inventory decreased by 14%.
- EPS Performance: Adjusted EPS exceeded expectations at $0.26, surpassing the consensus of $0.21.
What's next for Levi Strauss
Levi Strauss maintained revenue growth guidance of 1% to 3% for the year and raised adjusted EPS forecast to $1.17-$1.27. Despite stellar gains, investors are advised to be cautious as the apparel industry faces challenges, and Levi's stock has rallied significantly recently.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.