US-based clothing company Levi Strauss has introduced a new growth plan to achieve net revenue of $9bn to $10bn by 2027, reflecting organic annual growth rate of 6-8% compared to the previous target of 4-6%.
The company revealed that it will aim for adjusted earnings before interest and taxes (EBIT) margin expansion to 15% over the next five years.
Levi Strauss also expects its direct to consumer (DTC) to expand to 55% of total revenue and e-commerce sales to triple by 2027.
To achieve these goals, Levi Strauss will strengthen the Levi’s brands, which include Signature by Levi Strauss & Co and Denizen, Dockers and Beyond Yoga.
The company aims for approximately $2-$2.5bn in revenue growth for the Levi’s brands and $1bn in combined revenue from Dockers and Beyond Yoga by 2027.
It will effectively integrate product, design, marketing and consumer in-store experiences across all markets.
Investment will be directed towards stores and online platforms, digital and AI capabilities.
Levi Strauss president and chief executive officer Chip Bergh said: “We are emerging from the pandemic a much stronger, more profitable company than we were at the time of our IPO in 2019, having made meaningful progress on executing our strategy and diversifying our portfolio.
“We are entering this next phase of growth with strong momentum, proven execution and a bold strategy to increase profitable top-line growth annually by 6-8%, growing our direct-to-consumer business to 55% of revenue, and nearly doubling the women’s business.”
Levi Strauss also reaffirmed its net revenue for fiscal 2022 to grow 11% to 13% from previous fiscal to between $6.4bn and $6.5bn.
The company also expects an adjusted diluted earnings per share (EPS) of $1.50 to $1.56 during the fiscal.