Levi Strauss reported on Thursday net revenues of USD 1.7 billion for the first quarter, up 6 percent, and 9 percent on a constant-currency basis, reflecting strong growth in the direct-to-consumer channel, up 12 percent, and double-digit uptick in the U.S. denim brand’s Asia region.
SEE ALSO: Levi Strauss’ Nuholt Huisamen on ‘next-generation’ retail, East Asia Pacific game plan
In Asia, net revenues increased 12 percent on a reported basis and 22 percent on a constant-currency basis, driven by all markets outside China, said Levi’s in a press release. DTC net revenues in Asia increased 15 percent on a reported basis and 25 percent on a constant-currency basis, driven by strength in company-operated mainline and outlet stores and e-commerce. Wholesale net revenues increased 9 percent on a reported basis and 19 percent on a constant-currency basis, said the company.
Operating income for the segment increased due to higher net revenues and lower SG&A expenses as a percentage of net revenues, partially offset by lower gross margins.
“Our first quarter results reflect the strength of our brands and the progress we are making against our strategic priorities,” said Chip Bergh, president and chief executive officer of Levi Strauss & Co.
“We delivered strong growth in our international business and record-breaking revenue performance in our direct-to-consumer channel. As we celebrate the 150th anniversary of the iconic 501 jean, we are deepening connections with consumers and cementing loyalty with the next generation of Levi’s fans.”
Last month, Levi’s announced the opening of its largest store in Asia, as the company continues to home in on the region as one of its top regions via markets including India.