Levi Strauss & Co reports 8% rise in net revenue from DTC in Q2, FY24
In its financial results for Q2, FY24, San Francisco–based Levi Strauss & Co reported an 8 per cent rise in its net revenue from the DTC segment over Q2 2023. The company’s revenues from the segment rose from $621.5 million to $672.5 million while e-commerce revenue surged by 19 percent, with both Levi’s and Beyond Yoga demonstrating double-digit growth.
Wholesale net revenue for Levi’s rose by 7 per cent to $768.7 million. However, the company noted a $100 million adjustment to wholesale shipments due to its ERP implementation between Q2 and Q1 2023 and an exit from its Denizen business. With this adjustment, wholesale net revenues decreased by 4 per cent.
Levi’s continued to expand its DTC strategy by increasing its number of owned stores globally. On June 18, the brand opened its largest Levi’s store in India and the largest of its mall stores worldwide, with a 9,150-square-foot location in New Delhi’s Pacific Mall.
Harmit Singh, Chief Financial and Growth Officer, Levi’s, says, the structural economics of the brand’s business continues to strengthen, driven by record gross margins resulting in improved profitability across both DTC and wholesale, and lower-than-expected inventory.
