Levi’s delivered a strong Q1 performance, with rising sales and an optimistic outlook for the year ahead.
The company saw its net revenue rise by 3% to $1.5 billion, while its direct-to-consumer net revenues went up by 9%.
Additionally, Levi’s achieved a net income of $135 million, up from a net loss of $10.6 million in the same period last year. It ended the quarter with adjusted diluted EPS of $0.38, an increase of 52% year-over-year.
Michelle Gass, Levi’s president and CEO, said: “We exceeded revenue and profitability expectations in Q1, marking a strong start to the year, another proof point that our transformation strategy is working.
“While we recognize that we are operating in an uncertain environment, our global footprint, strong margin structure, and agile supply chain position us to navigate the balance of the year and beyond.”
By partnering with well-known public figures, such as its collaboration with singer Beyoncé, the denim retailer managed to boost sales and reach a wider audience.
Moving forward, the company projects a positive outlook for the upcoming fiscal year and expects the additional tariffs to have minimal effects on its operations.
Gass added in an earnings call: “We have scale with an agile global supply chain, deep vendor relationships, and a strong balance sheet, all of which position us well to navigate this time of uncertainty.”
Levi’s expects organic net revenue to increase by 3.5% to 4.5%, while reported net revenue is expected to decline by between 1% and 2%. The retailer currently operates in 120 countries and has around 3200 stores worldwide.
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