Levi Strauss & Co’s quarterly revenues increased 9 per cent constant currency or 6 per cent on a reported basis to US $ 1.7 billion for the first quarter of 2023.
The company warned of a margin crunch this year as it would have to offer higher promotions than previously anticipated while also grappling with higher costs.
It topped quarterly results estimates but maintained its annual revenue and profit forecast, and said its full-year gross margin would be down about 50 basis points from 57.5 per cent a year earlier.
The company’s DTC net revenues increased 12 per cent Y-o-Y, driven by broad-based growth in both company-operated stores and e-commerce across all segments. DTC revenue comprised 42 per cent of total sales.
“Our first quarter results reflect the strength of our brands and the progress we are making against our strategic priorities,” said Chip Bergh, president and CEO of the company
Chip further added, “We delivered strong growth in our international business and record-breaking revenue performance in our direct-to-consumer channel. As we celebrate the 150th anniversary of the iconic 501® jean, we are deepening connections with consumers and cementing loyalty with the next generation of Levi’s® fans. This past quarter in the U.S., we were the market share leader among the key 18- to 30-year-old consumers, and we continued to grow share in our women’s denim bottoms business, further narrowing the gap to number one.”
