Levi Strauss reported a robust first quarter, with revenue climbing 14% to $1.74 billion, surpassing Wall Street expectations. Direct-to-consumer (DTC) sales accounted for over half of total revenue for the first time, reflecting a strategic shift that has boosted margins despite higher costs. CEO Michelle Gass indicated that DTC sales are expected to remain above 50% for the year, supported by both price increases and positive foreign exchange effects, while CFO Harmit Singh noted that half of the revenue growth stemmed from these price hikes.
The company raised its full-year adjusted earnings per share guidance to a range of $1.42 to $1.48, slightly below analyst expectations. Despite potential headwinds from rising consumer costs, Levi’s diversified offerings across various demographics and its global presence—60% of sales coming from outside the U.S.—position it well for continued growth. Market professionals should watch for how the evolving tariff landscape and consumer spending trends may impact future earnings.
Source: cnbc.com