Net revenue

Levi Strauss Announces 15% Increase in Second Quarter 2022 Net Sales

U.S.-based clothing retailer Levi Strauss reported net sales of $1.5 billion for the second quarter (Q2) of fiscal 2022 (FY22), which ended May 29 .

This figure represents an increase of 15% compared to the corresponding period last year.

For the three-month period, Levi Strauss reported net sales increased 20% at constant currency compared to the same period last year.

Driven by a 23% increase in its company-operated stores, the retailer’s global direct-to-consumer revenue grew 16% year-on-year, while its global wholesale revenue grew 15%. % year-on-year.

Levi Strauss’ net revenue from global digital sales accounted for approximately 20% of its total net revenue in the second quarter, up 3% on top of a 75% growth in the same quarter of FY21.

The company’s gross profit for the quarter was $855 million versus $750 million a year earlier, while its gross margin was 58.1% of net revenue, versus 58.8% in the same quarter last year. ‘last year.

Due to the effects of the Russian-Ukrainian conflict, Levi Strauss saw its operating profit drop to $76 million from $107 million the previous year.

The decline impacted its net profit, which fell from $65 million last year to $50 million in the second quarter of 2022.

Its earnings per share (EPS) for the second quarter was $0.12, compared to $0.16 in the same period a year earlier.

Levi Strauss President and CEO Chip Bergh said, “Our second quarter results demonstrate the power of our strategy, which continues to support strong revenue growth and margin expansion.

“By continuing to advance our most impactful engines of growth – being brand-led, consumer-first and diversifying the portfolio, we are well-positioned to continue driving growth and creating meaningful value for all. our stakeholders.”

For the full year, Levi Strauss expects net revenue to grow 11% to 13% and has forecast adjusted diluted EPS of between $1.50 and $1.56.