Levi’s is bolstering its DTC strategy, which includes launching owned stores across the globe such as a New Delhi location that opened on June 18.
FINANCE
Levi’s Reports Growth in Q2 Performance With Strength in DTC
San Francisco–based Levi Strauss & Co. reported financial results for second quarter 2024, which ended May 26, nearly six months after the January appointment of president and CEO Michelle Gass. The heritage denim maker revealed net revenue of $1.4 billion, with direct-to-consumer business reflecting 47 percent of total net revenue.
“We delivered another strong quarter driven by the Levi’s brand’s prominence at the center of culture, a robust pipeline of newness and innovation, and continued momentum in our global direct-to-consumer channel,” said Gass.
Levi’s DTC net revenue increased 8 percent over Q2 2023, from $621.5 million to $672.5 million. E-commerce revenue increased 19 percent, with Levi’s and Beyond Yoga showing double-digit growth, the company revealed during a June 26 conference call.
“Our amplified focus on women’s and denim lifestyle is delivering outsized growth and driving meaningful market-share gains,” said Gass. “Our transformational pivot to operating as a DTC-first company is yielding positive results around the world, giving me great confidence that we will achieve accelerated, profitable growth for the rest of the year and beyond.”
Wholesale net revenue for Levi’s increased 7 percent to $768.7 million. Levi’s, however, noted an approximately $100 million adjustment to wholesale shipments from its ERP implementation between Q2 and Q1 2023 and an exit from its Denizen business. With the adjustment, wholesale net revenues decreased 4 percent.
Levi’s focus on its DTC strategy includes adding to its roster of owned stores around the globe. The brand opened its largest Levi’s store in India and largest of the brand’s mall stores in the world with the launch of a 9,150-square-foot location in New Delhi’s Pacific Mall on June 18.
“We are pleased to have delivered earnings that significantly exceeded expectations for a second consecutive quarter,” said Harmit Singh, chief financial and growth officer of Levi’s. “The structural economics of our business continue to strengthen, driven by record gross margins resulting in improved profitability across both DTC and wholesale and lower-than-expected inventory.”
