Levi Strauss beat first-quarter income estimates on Monday and maintained its full-year forecast, betting on regular demand for its jeans and a various provide chain to navigate an escalating commerce conflict that has hit footwear and attire retailers.
The corporate has seen demand for wide-legged and thin denims maintain up — a development in step with rivals resembling Abercrombie & Fitch and Hole — regardless of consumers being selective in spending on discretionary objects.
The retailer posted a 3 p.c rise in reported quarterly income from persevering with operations to $1.53 billion, which excluded gross sales from its Dockers model. Analysts, on common, have been anticipating a 1 p.c drop to $1.54 billion, as per information compiled by LSEG.
Gross margin elevated 330 foundation factors to 62.1 p.c for the three months ended Mar. 2, from 58.8 p.c final 12 months, pushed by decrease product prices and a powerful direct-to-consumer channel.
As a part of its plan to streamline operations, Levi stated final October it was exploring a sale of Dockers, which has seen demand wrestle.
“Whereas we acknowledge that we’re working in an unsure surroundings, our world footprint, sturdy margin construction, and agile provide chain place us to navigate the steadiness of the 12 months and past,” stated Levi Strauss CEO Michelle Gass.
The corporate maintained its fiscal 2025 natural web income and revenue forecasts, which didn’t embody any influence from lately introduced tariffs and excluded revenues from Dockers.
By Savyata Mishra and Anuja Bharat Mistry; Edited by Alan Barona
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