Levi Strauss & CO revenues jump 15% to £1.25bn

Levi Strauss and Co has revealed its net revenues climbed 15% to $1.5bn (£1.25bn) in its second quarter after global direct-to-consumer sales rose by 16%.

In the three month period ended 26 May, the group also reported strong growth in its company-operated store sales which increased by 23%.

The second quarter saw operating income fall to $76m (£63.5m) from $107m (£89.4) a year ago following $60m (£50) of charges related to the Russia-Ukraine crisis.

Meanwhile, it reported a net income of $50m (£41.8m) compared with $65m (£54.3m) in the same quarter last year, primarily due to the decrease in operating income.

The group also reported gross profits of $855m (£714.7m) compared with $750m (£626.9m) in the same quarter of last year and an adjusted net income of $117m (£97.8m) down from $93m (£77.7m) the previous year. 

Chip Bergh, president and CEO of Levi Strauss and Co, said: “Our second quarter results demonstrate the power of our strategy, which continues to support strong revenue growth and margin expansion. 

“Our brands are resonating with consumers across geographies, channels and product categories. By continuing to advance our most impactful growth drivers – being brand-led, direct to consumer first and diversifying the portfolio, we are well-positioned to continue to drive growth and create significant value for all our stakeholders.” 

Harmit Singh, CFO of Levi Strauss and Co, added: “We delivered another solid quarter, growing reported net revenues 15% and adjusted EBIT 27%, while returning $80 million (£66.8) in capital to shareholders.

“Although the operating environment remains dynamic, the diversity of our business is providing the resilience and flexibility needed to drive solid financial results in fiscal year 2022, while progressing us on our path to achieve net revenues of $9 (£7.52bn) to $10 (£8.36bn) billion and adjusted EBIT margin of 15% by fiscal year 2027.”