During the quarter ended March 1, direct-to-consumer (DTC) sales accounted for 52% of the company’s total net revenues, according to a Tuesday earnings release.
“We are becoming a more DTC-first denim lifestyle company, and it is leading to more consistent and faster growth, a much larger addressable market, and higher profitability,” Michelle Gass, president and CEO of Levi Strauss & Co., said during the call. “Today, we’re operating from a stronger foundation, we’re executing with intention, and we have more ways to win than ever before.”
DTC encompasses the company’s Levi’s brand company owned and operated mainline and outlet store base and owned digital channels, according to the release.
During the company’s first quarter, Levi Strauss’ DTC net revenues increased 16% on a reported basis and 10% on an organic basis, outpacing its wholesale net revenues, which rose 12% on a reported basis and 8% on an organic basis, according to the release.
Gass said during the call that Levi’s DTC comparable sales were up 7% during the quarter, on top of high single-digit growth last year, and that this marked 16 consecutive quarters of comparable sales growth.
The firm’s eCommerce sales were up 17%, “reflecting continued momentum as we elevate the online experience,” Gass said.
Harmit Singh, chief financial and growth officer at Levi Strauss & Co., said during the call that the company’s Americas business was primarily wholesale but is now a more balanced mix of DTC and wholesale.
“It’s not coming at the cost of wholesale; it’s that DTC is growing at a much stronger pace,” Singh said. “We have about 70, 80 full-price stores in the U.S. We’re probably going to be opening 10, 12 stores a year for the next couple of years and doubling that.”
PYMNTS reported in October 2024 that Levi Strauss was in the midst of a pivot to D2C-first retail and had made strides with a streamlined website and consumer experience as it aimed for profitable growth.