Levi Strauss said first-quarter revenues fell 8 percent to USD 1.6 billion, coinciding with a net profit plunge, due to job cuts and consequential severance packages at the denim maker.
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By channel, direct-to-consumer revenues increased 7 percent on a reported basis, including a 10 percent increase in the U.S. and a 4 percent increase in Europe, excluding Russia. Revenues from e-commerce grew 13 percent, reflecting double-digit growth across the Levi’s and Beyond Yoga brands.
Contrastingly, wholesale revenues declined 18 percent on a reported basis, driven primarily by a USD 100 million negative shift in wholesale shipments from the U.S.
Revenues in Asia totalled USD 289 million, in line with prior year on a reported basis and up 5 percent on a constant-currency basis, on top of 22 percent growth in the prior year, reflecting growth across most markets, said the San Francisco-based firm.
For the three months ending February 25, net loss was USD 11 million compared to net income of USD 115 million in the prior-year period, thanks to USD 116 million in severance and other changes. Adjusted net income was USD 103 million, compared to USD 135 million last year.
“We started the year strong delivering results above expectations, underscoring the power of the Levi’s brand and the progress we are making on our strategic priorities. Both newness and strength in our core offerings are fueling consumer demand and driving meaningful market share gains,”said Michelle Gass, president and CEO of Levi Strauss & Co.
“The momentum in our global DTC business continues, with DTC up in all segments. Our efforts to stabilize our wholesale business are delivering results. We are on our way to transforming this company into a best-in-class DTC-first apparel retailer, setting the stage for our next phase of sustainable profitable growth.”