Levi Strauss posted a profit in its first quarter results released for the first time since going public last month. The company posted a 7 per cent rise in quarterly revenue driven by the jeans maker’s strategy to invest in its retail stores and online business.
The company’s shares rose nearly 3 per cent to US $ 22.25 in extended trading.
The brand has been branching out from its staple men’s blue jeans into women’s apparel, t-shirts and fleeces to cater to changing customer preferences. The efforts helped Levi’s rake in double-digit revenue growth at its women’s and tops categories, while its biggest business of men’s jeans, pants and shorts, that include the iconic Dockers khakis, also grew 6 per cent.
“There are still a lot of headwinds. There are going to be more door-closings with the big wholesale customers in the US and Europe, Brexit is still a concern and China tariffs are still a question mark,” said Chief Executive Officer Chip Bergh.
Levi has been investing money into marketing by collaborating with celebrities such as Justin Timberlake and super model Hailey Bieber, while growing the number of retail stores and also revamping its websites.
Levi had 70 more company-operated stores at the end of the first quarter than it did a year earlier and sales at its direct-to-consumer business that includes company-owned stores and its online channels also grew 10 per cent in the first quarter.
The company’s shares have surged more than 30 per cent in its return to the public market on March 21.
Levi Strauss went public for the second time on March 21, 2019 in order to give its owners a chance to cash out on some of their holdings. It first went public in 1971, but has been a private company for the last 34 years.
