San Francisco, CA – Levi Strauss & Co. reported their Q2 2024 earnings in a recent conference call, showcasing strong growth in various segments of their business. Michelle Gass, the President and CEO, highlighted the successes of the company’s second quarter fiscal results, emphasizing the positive momentum seen across the board. The call, led by Aida Orphan, the VP of Investor Relations, shed light on the company’s strategies and performance in key regions worldwide.

Gass noted that the company experienced a 9% revenue increase in constant currency, with a 2% growth adjusted for ERP shifts and Denizen business exits. The direct-to-consumer (DTC) channel showed a significant 11% growth, marking nine consecutive quarters of robust comp growth. Additionally, the Levi’s brand saw a 2% increase in adjusted basis, with a strong performance in the global women’s business segment.

The US market demonstrated positive growth for the third consecutive quarter on an adjusted basis, contributing to the overall improvement in global wholesale. Record gross margins of 60.5% were achieved, leading to higher-than-expected adjusted diluted EPS of $0.16. Gass highlighted the company’s ongoing transformation towards becoming a best-in-class direct-to-consumer retailer, underscoring the positive impact of these efforts on quarterly results.

Looking ahead, the company plans to continue driving innovation and newness in their product offerings, particularly focusing on denim dressing and expanding their total addressable market. Strong performance in core offerings, coupled with newness and innovation in denim and beyond, has positioned Levi Strauss & Co. for future growth opportunities. The company also plans to streamline its go-to-market calendar, reducing SKUs by at least 15% to enhance efficiency as a DTC-driven organization.

The call also touched upon the company’s commitment to wholesale business, with expectations of modest growth in the back half of the year. Improved sellout trends, healthier inventory levels, and a focus on key strategies in product development and marketing aim to drive profitability and sustainable growth moving forward. As the company continues its pivot towards a DTC-first model, optimization of distribution and logistics networks remains a key focus for future success.

Levi Strauss & Co. remains optimistic about the second half of 2024, building upon the strong foundation laid out in the first two quarters. The company’s strategic priorities, coupled with a focus on brand development, product innovation, and operational efficiency, position them for continued success in the ever-evolving retail landscape.