Q1 2025 Levi Strauss & Co Earnings Call Transcript
Key Points
- Levi Strauss & Co (LEVI) reported a strong start to 2025 with high single-digit organic net revenue growth of 9%.
- The direct-to-consumer (DTC) channel continues to be a primary growth driver, up 12%, with strong e-commerce performance.
- The company's wholesale business also showed positive growth, up 5%, with the US business accelerating by 8%.
- Levi Strauss & Co (LEVI) gained market share in both men's and women's categories, solidifying its number one position in denim.
- The company achieved record gross margins of 62.1%, driven by lower product costs, favorable channel and brand mix, and higher full-price selling.
- The company is facing a dynamic macro environment due to recent tariff announcements, which could impact future financial performance.
- Despite strong performance, the company remains cautious about global wholesale, expecting it to be flat for the full year on an organic basis.
- Levi Strauss & Co (LEVI) is dealing with challenges in its China market, which was flat compared to the prior year.
- The company closed 21 net stores in the quarter, including 51 underperforming franchisee stores in China.
- There is uncertainty regarding the impact of tariffs on the company's cost structure and pricing strategy, with potential implications for margins.
Good day, ladies and gentlemen, and welcome to the Levi Strauss & Co first quarter fiscal 2025 earnings conference call for the period ending March 2, 2025. (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 at levistrauss.com.
I would now like to hand the call over to Aida Orphan, Vice President of Investor Relations at Levi Strauss & Co.
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Thank you for joining us on the call today to discuss the results for our first quarter fiscal 2025. 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 Q1 financial results in our earnings release on the IR section of our website, investors.levistrauss.com. The link
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