Levi Strauss Raises Full-Year Outlook as Q1 Sales Jump 9% to $1.7B
Levi Strauss reported Q1 organic sales up 9% to $1.7 billion and net income rose 30.2% to $175.8 million, with adjusted EPS of $0.42 topping forecasts by five cents. The direct-to-consumer segment now exceeds 50% of revenue as the company raised full-year sales and margin targets.
1. Q1 Earnings Beat Expectations
Levi Strauss delivered net sales of $1.7 billion for the quarter ended March 1, marking a 14% increase year-over-year. Organic sales grew 9%, and adjusted earnings per share reached $0.42, five cents above analysts’ consensus, while net income climbed 30.2% to $175.8 million.
2. Regional Performance Highlights
In the Americas, organic revenue rose 7% to $856 million, Europe grew 10% to $496 million and Asia increased 12% to $347 million. The Beyond Yoga brand recorded a 23% sales gain to $43 million, and operating profits surged 26% in Europe and 22% in Asia.
3. Direct-to-Consumer Momentum
Direct-to-consumer sales now account for more than half of total revenue, driven by a 16% increase in DTC shipments and a 7% rise in comparable store sales. This shift reflects the success of Levi Strauss’s strategy to evolve from a denim-only focus to a head-to-toe lifestyle brand.
4. Upgraded Outlook and Strategic Confidence
Building on strong first-quarter results, Levi Strauss boosted its full-year sales and EBIT margin targets, citing resilience in global markets. Management noted robust execution of existing strategies and expressed confidence in reaching $10 billion in revenue and a 15% EBIT margin goal.