US firm Levi Strauss' revenue up 22% to $1.6 bn in Q1FY22

As a percentage of first quarter company net revenues, sales from DTC stores and e-commerce comprised 30 per cent and 9 per cent, respectively, for a total of 39 per cent. Wholesale net revenues increased 15 per cent reflecting strong demand for the Levi's brand globally. The company’s global digital net revenues grew approximately 16 per cent compared to the same period in the prior year and comprised approximately 25 per cent of first quarter fiscal 2022 net revenues, the company said in a press release.

"We started the year with strong consumer demand and solid momentum across geographies, channels and categories," said Chip Bergh, president and chief executive officer of Levi Strauss & Co. "Our teams’ disciplined execution of our strategic priorities enabled us to deliver strong top and bottom-line growth as we capitalise on structural tailwinds and successfully manage a dynamic operating environment. The strength of our brands and strategy position us to deliver sustainable growth well into the future."

In the fourth quarter, gross profit was recorded at $944 million, as compared to $760 million in the same quarter in the prior year. Gross margin was 59.3 per cent of net revenues, up from 58.2 per cent in the same quarter of the prior year. Adjusted gross margin, which excludes COVID-19 and acquisition-related charges, was 59.4 per cent, an increase of 170 basis points compared to the same period in the prior year. The increase in gross margin reflects a higher proportion of sales in our DTC channel, lower promotions, higher share of full price sales and price increases, partially offset by higher product costs.

"We achieved excellent financial results in the first quarter, driving strong double-digit revenue growth and record gross margin enabling us to deliver an adjusted EBIT margin of 14.9 percent," said Harmit Singh, chief financial officer of Levi Strauss & Co. "The ongoing consumer demand across our portfolio of brands and our proven ability to deliver profitable growth give us the confidence to reaffirm our full-year outlook despite the incremental headwinds from ongoing macro challenges."

Fibre2Fashion News Desk (RR)