Levi Strauss saw its sales growth extend in the second quarter, which management said reflects the results of its ongoing strategies.
For the quarter ended May 31, net revenues rose 8 per cent on a reported basis and 6 per cent on an organic basis to $1.6 billion.
Sales in the Americas increased 9 per cent on a reported basis, including a 5 per cent uplift in the US.
Europe revenues grew 4 per cent, and Asia was up 10 per cent. Sales at Beyond Yoga improved 16 per cent during the quarter.
Operating margin was up from 7.5 per cent a year ago to 7.8 per cent. Net income from continuing operations rose from $80 million to $95 million.
By channel, direct-to-consumer net revenues soared 11 per cent, with the US up 5 per cent, Europe up 12 per cent and Asia up 12 per cent. Wholesale net revenues increased 5 per cent.
President and CEO Michelle Gass said the second-quarter results are another proof point that the company’s strategies are working.
“Our evolution into a DTC-first, denim lifestyle company – with a much larger addressable market – is translating to faster growth and higher profitability.
“While we are pleased with the progress, we are still in the early stages of our long-term growth journey, with more ways to win than ever before,” Gass added.
The company continued to upgrade its full-year outlook, expecting net revenues to grow 7-7.5 per cent on a reported basis, compared to the previous guidance range of 5.5-6.5 per cent. Organic sales are forecast to be up 5.5-6 per cent, compared to the prior 4.5-5.5 per cent.
