US clothing company Levi Strauss & Co has reported net revenues of $1.84bn in the fourth quarter (Q4) of the fiscal year 2024 - a 12% surge on a reported basis compared to $1.64bn in the corresponding period of the previous fiscal year.
The company’s revenue in the Americas region grew by 12% on a reported basis, driven by 6% growth in the US.
In Europe, revenue grew 15% on a reported basis. In Asia, revenue rose by 9%.
Levi Strauss & Co's portfolio of brands includes Levi's, Levi Strauss Signature, Denizen, Dockers and Beyond Yoga.
The brands experienced a revenue uplift as well, with Dockers climbing 9% on a reported basis and Beyond Yoga 10%.
The company’s direct-to-consumer segment recorded 19% revenue growth on a reported basis, and the wholesale channel experienced a 7% reported revenue increase over the quarter.
Levi's net income stood at $183m in Q4 FY24, increasing 44% from $127m in Q4 FY23.
Its diluted EPS (earnings per share) for the quarter was up $0.46 compared to $0.32 in Q4 FY23.
The company’s operating margin reached 11.5%, surpassing the previous year's 9.2%.
The gross margin increased by 350 basis points to 61.3%, primarily owing to reduced product costs from Project Fuel initiatives.
Levi Strauss & Co president and CEO Michelle Gass said: “We delivered a strong fourth quarter and holiday season, positioning us well as we enter 2025. Our sharpened focus on the core Levi’s brand is working, with broad-based strength across women’s, men’s, DTC [direct-to-consumer] and wholesale.
“Our improved performance is a direct result of the work we have done to transform the company into a best-in-class omnichannel retailer. We have a strong plan for the year ahead supported by a robust product pipeline, the continuation of our marketing campaign with Beyoncé and continued retail expansion.”
For the full fiscal year 2024, Levi’s posted net revenues of $6.35bn, increasing 3% over FY23 on both reported and organic basis.
The company’s net income for FY24 totalled $211m - a decrease of 16% from FY23’s figure of $250m.
Its diluted EPS for FY24 was calculated at $0.52, down from FY23’s EPS of $0.62.
The company’s gross margin for the full year was 60.0%, higher than the preceding fiscal by 310 basis points while the operating margin stood at 4.2%.
Looking ahead into the fiscal year to end on 30 November 2025, Levi projects net revenues to dip slightly between 1% and 2% on a reported basis while anticipating organic net revenue growth between 3.5% and 4.5%.
The company also forecasts expanded adjusted earnings before interest and taxation margin ranging from 10.9% to 11.1%.
