Levi Strauss beat earnings and revenue estimates last quarter as direct-to-consumer sales rose, and has lifted its full-year guidance.
Earnings per share were US$0.42, up from $0.38 one year ago and passing LSEG consensus estimates of $0.37. Revenue increased 14% to $1.74 billion, above estimates of $1.65 billion.
“We delivered very strong financial performance in the first quarter driven by broad-based growth across channels, regions and categories,” said Levi Strauss CEO Michelle Gass.
“Our evolution into a DTC-first denim lifestyle brand is allowing us to capture a much larger addressable market and deliver faster and more consistent growth. Today we are operating from a stronger foundation, executing with focus and intention, with more ways to win than ever before.”
Direct-to-consumer net revenues grew 16%, and now represent 52% of Levi Strauss’ revenue. This was due to a 10% increase in the United States, a 19% rise in Europe, and an 18% climb in Asia, the company said.
Overall, Europe saw the largest revenue percentage increase of any region at 24%. Revenue in the Americas was up 9%, while Asia revenue rose 13%.
Operating income was $198.7 million last quarter, up from $191.6 million. Its Europe and Asia segments posted operating income growth above 20%, while Americas operating income dropped 4%.
Its guidance includes net revenue growth of 5.5-6.5%, raised from its previous forecast of 5-6%. It expects earnings per share of $1.42-1.48, increased from $1.40-1.46.
Levi Strauss (NYSE: LEVI) shares closed 0.2% higher at $19.71, and surged 7.3% in after-hours trading. Its market capitalisation is $7.58 billion.
