Levi Strauss exceeds revenue and profitability expectations in Q1 2025

US covering institution Levi Strauss & Co recorded a 3% emergence successful nett revenues to $1.52bn successful the archetypal 4th (Q1) of fiscal 2025 (FY25), up from the $1.48bn reported successful Q1 FY24.

During the 4th ending 2 March 2025, the company’s Levi’s marque witnessed an 8% surge successful planetary integrated nett revenues.

Regionally, the Americas and Asia experienced maturation successful nett revenues by 6% and 7% respectively, portion Europe saw a diminution successful nett revenues by 5%.

The company’s direct-to-consumer channels contributed positively with a 9% ascent successful nett revenues. Wholesale channels faced a downturn with a 3% simplification successful nett revenues.

A important turnaround was evident successful the company's profitability, with nett income from continuing operations reaching $140m successful Q1 FY25, compared to a nett nonaccomplishment of $10m successful the aforesaid play of the erstwhile year.

The rebound was reflected successful net per stock from continuing operations, which stood astatine $0.35, up from a diluted nonaccomplishment per stock of $0.03 successful Q1 FY24.

Levi Strauss’ operational ratio improvements were underscored by an enlargement successful operating borderline to 12.5% and an summation successful gross borderline of 330 ground points to 62.1%.

The maturation successful gross borderline was attributed chiefly to reduced merchandise costs and an advantageous premix of channels and brands.

Adjusted net earlier involvement and taxes (EBIT) borderline besides saw a important improvement, climbing by 400 ground points to scope 13.4%, propelled by the enhanced gross margin.

Levi Strauss saw a marginal driblet successful selling, wide and administrative expenses to $749m implicit the 4th from $756m reported successful the archetypal 4th of the erstwhile year.

The institution reclassified the Dockers concern arsenic discontinued operations successful Q1 FY25.

Levi Strauss & Co president and CEO Michelle Gass stated: “We exceeded gross and profitability expectations successful Q1, marking a beardown commencement to the twelvemonth - different impervious constituent that our translation strategy is working.

“The Levi’s marque is stronger than ever, and we volition proceed to substance this momentum done a robust merchandise pipeline and by keeping the marque firmly astatine the centre of civilization crossed the globe. While we recognise that we are operating successful an uncertain environment, our planetary footprint, beardown borderline structure, and agile proviso concatenation presumption america to navigate the equilibrium of the twelvemonth and beyond.”

Levi Strauss has maintained guidance for fiscal 2025 based connected continuing operations, excluding the interaction of the caller tariffs.

The institution anticipates a flimsy diminution successful reported nett revenue, ranging betwixt 1% and 2%.

Expectations for gross borderline are nevertheless optimistic, with an anticipated enlargement of 100 ground points to 61.6%.