US-based apparel retailer Levi Strauss has reported $1.5bn in net revenue for the second quarter (Q2) of the fiscal year 2022 (FY22), which ended on 29 May.
The figure represents a 15% increase from the corresponding period of last year.
For the three-month period, Levi Strauss’ reported net revenue was up by 20% on a constant-currency basis compared with the same period of last year.
Driven by a 23% increase in its company-operated stores, the retailer’s global direct-to-consumer revenue rose by 16% from the prior year, while its global wholesale revenues increased by 15% year-on-year.
Levi Strauss’ net revenues from global digital sales represented around 20% of its total Q2 net revenues, up by 3% on top of a 75% growth in the same quarter of FY21.
The company’s gross profit for the quarter was $855m compared with $750m a year earlier, while its gross margin represented 58.1% of its net revenues, as against 58.8% in the same quarter of the prior year.
Due to the effects of the Russia-Ukraine conflict, Levi Strauss saw its operating income drop to $76m from $107m a year previous.
This decline impacted its net income, which declined from $65m last year to $50m in Q2 2022.
Its earnings per share (EPS) for Q2 were $0.12, compared with $0.16 in the prior-year period.
Levi Strauss president and CEO Chip Bergh said: “Our second quarter results demonstrate the power of our strategy, which continues to support strong revenue growth and margin expansion.
“By continuing to advance our most impactful growth drivers – being brand-led, direct to consumer first and diversifying the portfolio, we are well-positioned to continue to drive growth and create significant value for all our stakeholders.”
For the full year, Levi Strauss expects its net revenues to grow by 11% to 13% and has forecast adjusted diluted EPS of between $1.50 and $1.56.