Levi Strauss posts strong 14% sales growth

Jeans maker Levi Strauss & Co. posted a strong first quarter, beating expectations as revenue rose 14% to $1.74 billion from $1.53 billion a year earlier. 

Profit also came in higher, with earnings at 42 cents per share, versus 37 cents expected. Net income increased to $175.8 million from $135 million last year.

DTC drove more than half of the quarterly revenue
Growth was largely driven by the brand’s own stores and website. Sales from these direct channels jumped 16% and now make up 52% of total revenue, showing that the company’s shift toward direct-to-consumer is paying off.

At the same time, higher prices and increased volumes supported overall growth. The company is also expanding beyond jeans into tops, skirts, and dresses, while speeding up production to stay aligned with changing fashion trends.

Looking ahead, Levi Strauss & Co. expects revenue to grow between 5.5% and 6.5% this fiscal year. It has also raised its adjusted earnings forecast to $1.42–$1.48 per share, despite a 4-cent impact from higher taxes.

With about 60% of revenue coming from outside the US, the company benefits from geographic diversification. However, it remains cautious about demand if consumers reduce spending.

Its stock has risen steadily over the past three years. The company trades at 12.9 times forward earnings, compared with Ralph Lauren at 19.2 and American Eagle Outfitters at 9.7, reflecting balanced investor expectations.