US-based apparel brand Levi Strauss has reported a net loss of $11m in the first quarter of fiscal 2024 (FY24) compared to net income of $115m in the same period of FY23. 

The company’s diluted loss per share was $0.03, a significant drop from its diluted earnings per share of $0.29 in Q1 FY23. 

During the quarter ended 25 February 2024, Levi Strauss’s net revenues reached $1.55bn, an 8% decrease on both a reported and constant-currency basis compared to $1.68bn in Q1 FY23.  

The decline is primarily attributed to the shift in wholesale shipments from the second to the first quarter of 2023 due to US enterprise resource planning implementation. 

In the Americas and Europe, the brand’s net revenues decreased by 11% and 7% respectively on a reported basis.  

Net revenues in Asia remained consistent with the previous year on a reported basis and increased by 5% on a constant-currency basis. 

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The brand’s direct to consumer (DTC) net revenues saw a 7% increase on a reported basis. Its e-commerce revenues grew by 13% on a reported basis and 12% on a constant-currency basis, reflecting double-digit growth across the Levi’s and Beyond Yoga brands. 

Levi Strauss’s operating margin was 0.03% in Q1 FY24, a steep decline from 9.3% in Q1 FY23.  

However, its gross margin improved by 240 basis points to 58.2% from 55.8% in Q1 FY23, mainly due to lower product costs and a favourable mix shift. 

For the full year 2024, its net revenues are expected to increase by 1% to 3% year-on-year.  

The company’s adjusted diluted earnings per share are now projected to be between $1.17 and $1.27, compared with the previous expectation of $1.15 to $1.25. 

Levi Strauss president and CEO Michelle Gass said: “We started the year strong, delivering results above expectations, underscoring the power of the Levi’s brand and the progress we are making on our strategic priorities.  

“Both newness and strength in our core offerings are fuelling consumer demand and driving meaningful market share gains. The momentum in our global DTC business continues […] up in all segments.  

“Our efforts to stabilise our wholesale business are delivering results. We are on our way to transforming this company into a best-in-class DTC-first apparel retailer, setting the stage for our next phase of sustainable profitable growth.”