American clothing company Levi Strauss has reported net revenues of $1.51bn in the third quarter of fiscal year 2024 (Q3 FY 2024), increasing 2% on a constant-currency basis compared to Q3 FY 2023.
Revenue growth for Levi’s brand was up 5% globally during the quarter ending 25 August 2024.
The company’s Americas operation posted a 1% revenue decline on a reported basis in Q3 FY 2024 while in Europe, net revenues rose 6% on a reported basis compared to the prior-year quarter.
In Asia, Levi Strauss reported its revenues to grow 4% on a constant currency basis.
During the quarter, the company’s direct-to-consumer (DTC) net revenues increased by 12% on a constant currency basis, driven by a 12% and 9% growth in the US and Europe respectively.
E-commerce net revenue rose 18% on a constant-currency basis in Q3 FY 2024.
Net income of Levi Strauss reached $21m in Q3 FY 2024, compared to $10m in Q3 2023. In addition, its diluted earnings per share also increased to $0.05 in Q3 FY 2024 against $0.02 in Q3 2023.
Driven by lower product costs and favourable channel and brand mix, the company’s gross margin increased by 440 basis points to 60.0% in Q3 FY24 from 55.6% in Q3 2023.
Levi Strauss & Co president and CEO Michelle Gass said: “The underlying fundamentals of our business are getting stronger, driven by the Levi’s brand, which grew 5% globally in Q3, a significant acceleration from H1 and the highest revenue growth in two years.
“We are making progress against our strategic priorities, including double-digit growth in our direct-to-consumer business, continued positive performance in the US, and Europe inflecting to growth.
“Looking to Q4 and beyond, we will amplify our focus on the Levi’s brand, exemplified by our new campaign with Beyoncé and an innovative product pipeline designed to build momentum with our fans around the world.”
For full year 2024, Levi Strauss expects net revenues to grow around 1% on a reported basis and up 1.5% to 2% on a constant-currency basis.
The company anticipates delivering the mid-point of the previously forecasted range of $1.17 to $1.27 for its adjusted diluted EPS.
In the second quarter of the fiscal, Levi Strauss announced an 8% increase in net revenues to $1.44bn.
