American denim maker Levi Strauss & Co. announced revenues for the second quarter increased 15 percent to USD 1.5 billion, on the back of growth across all business segments and markets, including double-digit percentage growth in Asia.
The San Francisco-based company said revenues in Asia lifted 16 percent on a reported basis, to USD 222 million, and 21 percent on a constant-currency basis, driven by both its wholesale and DTC channels and most markets outside of China. Asian DTC net revenues increased 2 percent driven by strength in Levi Strauss’s company-operated mainline stores, while Asian wholesale net revenues increased 35 percent, driven by growth across most markets. Net revenues through all digital channels in Asia grew 17 percent and represented 15 percent of the segment’s sales in the quarter.
The company’s Asia operating income for the segment increased due to higher net revenues and lower SG&A expenses as a percentage of net revenues, added Levi’s.
In the company’s Americas market, revenues grew 17 percent to USD 776 million, while revenues in Europe lifted by 3 percent to USD 367 million.
Total company net income for the three months ending 29th May fell to USD 50 million, compared to USD 65 million in the same quarter of the prior year, primarily due to a decrease in operating income, affected by charges related to the Russia-Ukraine crisis.
“Our second quarter results demonstrate the power of our strategy, which continues to support strong revenue growth and margin expansion,” said Chip Bergh, president and chief executive officer of Levi Strauss & Co.
“Our brands are resonating with consumers across geographies, channels and product categories. By continuing to advance our most impactful growth drivers – being brand-led, direct to consumer first and diversifying the portfolio, we are well-positioned to continue to drive growth and create significant value for all our stakeholders.”