Levi’s back into profit in second quarter amid higher revenue in the Americas

Levi Strauss & Co reported income of $18 million for the second quarter – a significant turnaround from the previous year’s $2 million loss – amid better performance in the Americas.

The company reported $1.4 billion in sales for the three months to May 26, up 8 per cent on a reported basis and 9 per cent on a constant currency basis.

In the Americas, revenue surged 17 per cent to $712 million, however sales were down by 2 per cent in Europe at $354 million. Revenue was stable in Asia after 27 per cent top-line growth a year earlier.

Revenue from its other brands division grew 10 per cent to $115 million, while direct-to-consumer revenue jumped 8 per cent and wholesale net revenue by 7 per cent.

CEO and president Michelle Gass said the company’s transformational pivot to operating as a DTC-first company is yielding positive results around the world, giving her great confidence Levi Strauss will achieve accelerated, profitable growth for the rest of the year and beyond.

“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. Our amplified focus on women’s and denim lifestyle is delivering outsized growth and driving meaningful market share gains,” she concluded.

“The strength in our business fueled by our expanded product portfolio increases our total addressable market and gives us confidence in our ability to drive long-term shareholder value,” added Harmit Singh, chief financial and growth officer at Levi Strauss & Co.

For the full year, the company reaffirmed its forecasted 1 per cent to 3 per cent increase in revenue.

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