Levi Strauss & Co. is demonstrating strong global growth, particularly propelled by its performance in Asia. The company reported a 12% increase in Asia's net revenue for the most recent quarter, with both direct-to-consumer (DTC) and wholesale channels experiencing double-digit growth. This strong regional performance is a significant factor in the company's confidence in achieving its long-term goal of $10 billion in revenue and a 15% operating margin. New leadership in China has also contributed to progress there, with the company noting a return to growth and improving underlying trends.
The company's overall direct-to-consumer business saw an 8% increase in revenue for the quarter, and comparable sales grew by 6%, marking its 17th consecutive quarter of comparative sales growth. E-commerce revenue climbed 19%, driven by increased traffic and conversion, while wholesale revenues rose 5%. Levi Strauss's focus on becoming a "DTC-first, denim lifestyle company" has resulted in faster growth and higher profitability, according to CEO Michelle Gass.
Following a strong second quarter, Levi Strauss has raised its full-year revenue predictions to a reported net revenue increase of 7% to 7.5%, and organic net revenue increase of 5.5% to 6%. Adjusted diluted earnings per share are now projected to be between $1.46 and $1.52, an increase from the previous range of $1.42 to $1.48. This positive outlook is supported by robust performance across all channels and regions, with international markets, especially Asia and Latin America, showing significant momentum. The company expects adjusted EBIT margin to be 12% for the full year.
