Q4 2024 Levi Strauss & Co Earnings Call Transcript
Key Points
- Levi Strauss & Co (LEVI) reported a strong Q4 with net revenues increasing by 12% on a reported basis and 8% on an organic basis.
- The company achieved an all-time record gross margin of 61.3% in Q4, contributing to a 120 basis points expansion in adjusted EBIT margin.
- Levi Strauss & Co (LEVI) saw robust growth in its women's business, which grew by 12% in Q4, making Levi's the number one women's denim brand in the US.
- The direct-to-consumer (DTC) channel delivered double-digit growth, up 14% in Q4, marking the 11th consecutive quarter of positive comps.
- The company successfully expanded its product pipeline, introducing new fits and styles, and launched a high-impact marketing campaign with global icon Beyonce.
- Levi Strauss & Co (LEVI) is facing macroeconomic uncertainties, including potential tariff changes and foreign exchange headwinds, which could impact future performance.
- The company's SG&A expenses increased by 17% in Q4, driven by higher sales, advertising, and distribution expenses.
- Despite growth in the wholesale channel, Levi Strauss & Co (LEVI) is taking a cautious approach, projecting flat growth for this channel in 2025.
- The exit from the Denizen and footwear businesses, along with the impact of the 53rd week, is expected to create a headwind for reported net revenues in 2025.
- The company's operations in China are underperforming, leading to a contraction in operating margin for the Asia segment.
Good day. Ladies and gentlemen and welcome to the Levi Strauss & Company fourth quarter and fiscal year end conference call for the period ending December 1, 2024. (Operator Instructions)
This conference call is being recorded and may not be reproduced in whole or in part without written permission from the company. This conference call is being broadcast over the internet and a replay of the webcast will be accessible for one quarter on the company's website, levistrauss.com.
I would now like to turn the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Company.
Thank you for joining us on the call today to discuss the results for our fourth quarter and fiscal year end. Joining me on today's call are: Michelle Gass, our President and CEO; and Harmit Singh, our Chief Financial and Growth Officer.
We have posted complete Q4 and fiscal year end results in our earnings release on the IR section of our website investors
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