Levi Strauss Exceeds Earnings Expectations and Raises Fiscal 2024 Guidance

Levi Strauss & Co. announced its fiscal second-quarter results, beating analyst expectations for both revenue and earnings per share. 44 billion, up 9% from the prior year on a reported basis and 8% on a constant-currency basis.

The company reported adjusted earnings per share of 19 cents, exceeding the consensus estimate of 16 cents. Direct-to-consumer (DTC) sales accounted for more than half of total revenue for the first time, comprising 52% of the quarterly total. This segment grew 11% year-over-year, driven by strong performance in both company-operated stores and e-commerce.

Wholesale revenue increased 7%, supported by higher shipment volumes.

2024 Outlook Levi Strauss raised its full-year fiscal 2024 guidance, projecting revenue growth of 6% to 7% on a constant-currency basis, up from the prior range of 4% to 6%.

25. DTC sales are anticipated to represent 48% to 50% of total revenue for the year. U.S. tariff rates. One report indicated that the guidance excludes the impact of Supreme Court decisions on tariff rollbacks, while another specified that it omits President Donald Trump's latest tariff rates.

These attributions highlight a discrepancy in how sources described the tariff context.

tariffs on apparel imports, particularly from key manufacturing regions like Asia, remain a factor in Levi Strauss's cost structure. The company's production is heavily reliant on international supply chains, with a significant portion of goods sourced from countries subject to Section 301 tariffs.

Recent legal and policy developments have altered the tariff landscape, though specifics vary across reports. Levi Strauss's chief financial officer noted during the earnings call that the company continues to monitor trade policy changes. The firm has not quantified the potential impact of tariff adjustments on its margins in the current guidance.

Analysts will likely assess these factors in upcoming forecasts.

The Denizen brand, Levi Strauss's affordable casualwear line, saw double-digit revenue growth in the quarter.

5%, benefiting from lower product costs and favorable currency exchange rates. Operating expenses rose 10%, reflecting investments in marketing and digital infrastructure. Levi Strauss operates in more than 110 countries, with its flagship Levi's brand driving the majority of sales.

The earnings release was issued after market close on June 26, 2024.