Region-wise, Americas net revenues reached $995 million, reflecting a 12 per cent increase on a reported basis and 9 per cent organically. Europe posted net revenues of $434 million, marking a 15 per cent increase on a reported basis and 6 per cent organically. Asia recorded net revenues of $286 million, representing a 9 per cent increase both on a reported and organic basis, Levi Strauss said in a press release.
Levi Strauss & Co has reported Q4 2024 net revenues of $1.8 billion, up 12 per cent reported and 8 per cent organically.
Americas, Europe, and Asia saw revenue growth, though Asia’s operating income declined.
DTC sales surged 19 per cent, while wholesale grew 7 per cent.
FY 2024 net revenues hit $6.4 billion (+3 per cent YoY), with net income at $211 million and free cash flow at $671 million.
Brand-wise, the company’s other brands segment reported a 10 per cent rise in net revenues on a reported basis and 5 per cent organically. Notably, Dockers grew by 9 per cent on a reported basis and 5 per cent organically, while Beyond Yoga saw increases of 10 per cent and 4 per cent, respectively.
Distribution channel-wise, the direct-to-consumer (DTC) segment saw robust expansion, with net revenues rising by 19 per cent on a reported basis and 14 per cent organically. Organic growth in the DTC segment included an 11 per cent increase in the US, 17 per cent in Europe, and 8 per cent in Asia. E-commerce sales mirrored this growth, climbing 19 per cent on a reported basis and 14 per cent organically. DTC accounted for 45 per cent of total organic net revenues in the quarter. Meanwhile, wholesale revenues also recorded growth, increasing by 7 per cent on a reported basis and 3 per cent organically.
“We delivered a strong fourth quarter and holiday season, positioning us well as we enter 2025. Our sharpened focus on the core Levi’s brand is working, with broad-based strength across women’s, men’s, DTC and wholesale,” said Michelle Gass, president and chief-executive officer (CEO) at Levi Strauss & Co. “Our improved performance is a direct result of the work we have done to transform the company into a best-in-class omnichannel retailer. We have a strong plan for the year ahead supported by a robust product pipeline, the continuation of our marketing campaign with Beyoncé and continued retail expansion.”
“In Q4, the company delivered accelerating revenue growth, up 8 per cent on an organic basis, significantly improved DTC profitability, strong cash flow generation and better-than-expected bottom-line results,” said Harmit Singh, chief financial and growth officer of Levi Strauss & Co. “The strong demand trends, improving execution and the organization’s focus on the Levi’s brand gives me confidence in the guidance we are providing today which calls for higher organic revenue growth in 2025, in addition to continued strong margin expansion.”
For the full fiscal 2024, Levi’s Strauss reported net revenues of $6.4 billion, reflecting an increase of 3 per cent YoY from FY 2023, both on a reported and organic basis. Gross margin improved to 60.0 per cent, up 310 basis points from the previous fiscal, while the operating margin stood at 4.2 per cent. The adjusted EBIT margin rose to 10.2 per cent, compared to 9.0 per cent in FY 2023.
The net income reached $211 million, with adjusted net income climbing to $503 million, up from $441 million in the prior fiscal. Diluted earnings per share (EPS) was $0.52, while adjusted diluted EPS increased to $1.25, compared to $1.10 in FY 2023. The company achieved record adjusted free cash flow of $671 million, demonstrating strong financial performance. Additionally, it returned $289 million in capital to shareholders, marking a 45 per cent increase from the previous fiscal.
Fibre2Fashion News Desk (SG)