Latest news with #MichelleGass
Yahoo
17-07-2025
- Lifestyle
- Yahoo
Is ‘Quiet Western' the New Quiet Luxury?
Is quiet western the new quiet luxury? It could be according to Michelle Gass, Levi Strauss & Co. president and CEO. In the company's Q2 2025 earnings call on Thursday, the exec said the cowboy trend is evolving into a softer and subtler aesthetic. More from Sourcing Journal Best Denim Style at Paris Men's Fashion Week Levi's and Holt Renfrew Plan Popups and Activations Consumers Demand Authenticity Over Rainbow-Washing Pride Collections 'With our robust denim lifestyle offering, we're seeing consumers find that perfect pairing more and more often. Women are pairing a classic blue cut or flared jean with our simple essential rib tank or one of our textured knits inspired from our heritage. And men are wearing a classic western shirt with a Khaki XX Chino. Quiet western is perfect for the Levi's denim lifestyle aesthetic and a natural place for us to lead,' she said. Net revenues for the Levi's brand increased 9 percent globally on an organic basis, energized by a 10 percent increase in direct-to-consumer organic revenues and a 7 percent increase in wholesale. Harmit J. Singh, LS&Co. executive VP, chief financial and growth officer, said the brand generated a 'healthy mix of revenue growth with two-thirds driven by higher volume and one-third by higher AURs.' Levi's bottoms business was up 8 percent, driven by double-digit growth in women's. Men's was up mid-single digits. In terms of products, Gass said the brand's lightweight Linen+ Denim launch is seeing strong success across both men and women, while baggy bottoms continue to gain popularity. 'Ahead of the summer, we saw this trend accelerate in our short offering, which grew double digits in both men's and women's,' she said. 'With the '90s and Y2K fashion in full swing, longer and looser style shorts are in high demand. We're confident we have the right newness and innovation like the Baggy Dad Jort in place to deliver for our fans and drive this trend.' Additionally, Singh said the 578 Baggy for men performed exceptionally well in Levi's DTC channels. The brand is also seeing momentum with tops. Gass reported that Levi's tops business grew 16 percent in Q2 with acceleration across genders and channels. In Q2, Levi's opened 16 new stores that better reflect the brand's improving lifestyle assortment. Levi's direct-to-consumer continues to be an area of growth and opportunity. Sales from the channel increased 10 percent in the quarter. Increased store traffic, better conversion rates and higher AURs, are leading to growth in Levi's stores and online across all geographic segments, Gass said. However, wholesale exceeded expectations with the channel up 7 percent, posting its third consecutive quarter of growth. 'Our wholesale partners are embracing our head-to-toe offerings, broader product assortment and fashion fits. Having a strong direct-to-consumer presence and focus gives us insights to product trends, enabling both us and our customers to have the confidence to buy and fill flows for our new product offers,' Singh said. He added that the company will remain 'prudent' when it comes to wholesale as it's a channel it doesn't control. On the horizon Given the positive first half of the year, continued strong execution and momentum in our business, LS&Co. raised its top and bottom-line guidance for the year, increasing organic net revenue growth by 1 percentage point to 4.5 percent to 5.5 percent. Gass said Levi's has everything it needs to continue momentum including 'a fresh lineup of product innovation, unique and exclusive product collaborations and globally relevant partnerships.' A fourth chapter of Reiimagine, Levi's ongoing women's campaign with Beyoncé, will launch as well as a new campaign focused on underscoring the brand's relevancy and authenticity with men. Levi's will also diversify its fit portfolio with more loose and baggy styles, fresh skinny and straight silhouettes and more bootcut and western-inspired fits. Additionally, the 501 will get a performance fabric update with thermoregulating technology. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-07-2025
- Business
- Yahoo
Levi Strauss stock jumps on earnings beat, raised guidance
Levi Strauss (LEVI) reported better-than-expected second quarter results. Adjusted earnings of $0.22 per share was better than the Bloomberg consensus estimate of $0.13. Revenue was $1.45 billion versus an estimate of $1.37 billion. The company also raised its full-year profit and revenue guidance. Yahoo Finance Senior Reporter Brooke DiPalma reports the breaking news. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Levi Strauss earnings just crossing the wire now, and Brooke DiPalma has the results. Brooke. Good afternoon, Josh. Certainly wowing the street, stock up nearly 8% in after-hours trading. Retail comeback for Levi's here, as they really stand out this year so far. The stock up more than 30%, and now this stellar report out from them after hours uh here on this Thursday. Adjusted earnings per share, revenue beating, also the company raising their outlook. That's what has Wall Street excited right now. Taking a closer look at the numbers. Adjusted earnings per share came in at 22 cents versus what Wall Street had expected of 13 cents. We also know that revenue also came in higher at $1.45 billion versus what Wall Street thought was going to come in at $1.37 billion. CEO Michelle Gass saying in the release that they delivered another strong quarter. She said that reflected broad-based strength across the board and clear evidence that their strategic agenda is gaining traction. They also said they're entering the second half of this year in a very strong position of strength. That led them to increase, or rather raise, their guidance for the year. Now, it's important to note here that last quarter, they chose not to raise their guidance because it was early April, tariffs were just announced as retaliatory tariffs. Now, this new guidance assumes that U.S. tariffs on imports from China remain at 30%. It also assumes that the rest of the world has a 10% at the remainder of the year. They now expect net revenue to come in up 1 to 2% compared to a previously expected decline of 1 to 2%. Adjusted earnings per share for the year also expected to now come in between $1.25 to $1.30. Wall Street had expected $1.23. And if you take a closer look at my screen right here, we have Levi Strauss ticker page up. It's up nearly 8%, once again, in these after-hour trading. Lots of excitement here, Josh. Yeah, and Brooke, they're showing Chief Financial and Growth Officer, I see, Harmit Singh talking about that strong first half, talking about uh as he puts it, the continued momentum across the business. And does they even despite the higher tariffs raising those uh full-year revenue EPS expectations. What are you going to be listening for on the call, Brooke? Josh, we're really going to be listening to hear more about how a retailer was able to overcome all the uncertainty that we've seen from both the tariff front and consumers. Ahead of this report, analysts were super intrigued by Levi's ability to really navigate these tariffs. They've been able to do that by those mitigation tactics that we've been talking about so much. But also, that supply chain. If I take a closer look at how exactly they've been able to do that over the past few years, they've been able to change exactly where their sourcing comes from. They took their China imports to the U.S. down from 15 to 16% in 2018 to now just 1%. Also, last week we heard about Vietnam now getting a 20% deal. Well, now they only import mid to high single digits from Vietnam. So certainly, what we expect to hear is more of Levi's really touting that they've been able to mitigate the impact of these tariffs. They now source from 20 countries. We also know that 57% of its sales are made outside of the U.S. And in addition to that, analysts believe that they really do have the ability here to raise prices in this environment because of brand equity that they have. Everybody knows the Levi brand, Josh. All right, thank you, Brooke. Sign in to access your portfolio
Yahoo
11-07-2025
- Business
- Yahoo
Levi Strauss raises FY25 outlook amid strong Q2 performance
Levi Strauss reported net revenues of $1.45bn during the quarter ending 1 June 2025, marking a 6% increase on a reported basis and a 9% rise on an organic basis compared to the same quarter in the previous year. The Levi's brand itself experienced a 9% global increase on an organic basis. In the earnings call, Michelle Gass, president and CEO of Levi Strauss & Co, highlighted the company "delivered another standout quarter exceeding expectations across sales, margins and EPS." Gass attributed this success to "broad-based revenue growth across channels and categories" and "strong margin expansion," which she linked to the effective implementation of the company's strategic priorities. Overview of Q2 FY25 In Q2, the most significant growth was observed in Europe, where net revenues soared by 14% on a reported basis. In contrast, the Americas saw a more modest 5% increase in net revenues on a reported basis, while Asia's net revenues remained unchanged on both a reported and organic basis. The company's net income from continuing operations surged to $80m from $17m in Q2 2024, which translate to diluted earnings per share (EPS) from continuing operations of $0.20 in Q2 FY25 against $0.04 during the same period last year. The company's operating margin improved to 7.5% in Q2 FY25 from 1.5% in Q2 2024. Gross margin saw an increase of 140 basis points to 62.6%, primarily due to reduced product costs and a more favourable channel mix. Levi Strauss' selling, general and administrative (SG&A) expenses also rose to $791m in Q2 FY25 from $756m in Q2 2024. Adjusted SG&A expenses accounted for 54.4% as a percentage of sales, improving by 50 basis points over the previous year. The company reported an 11% rise in direct-to-consumer (DTC) net revenues, with a comparable organic increase of 10%. E-commerce net revenues also saw a 13% growth, both on a reported and organic basis. During the second quarter, DTC sales accounted for half of the total net revenues. In April this year, Levi Strauss & Co expanded its DTC reach by introducing its Red Tab loyalty initiative to four more European markets. Overview of H1 FY25 In the first half of the fiscal, Levi Strauss's revenue grew by 5%, reaching $2.97bn on a reported basis for the first half of the fiscal year. Net income from continuing operations reached $220m compared to just $7m in H1 FY24, with diluted earnings per share from continuing operations increasing to $0.55 from $0.02. Outlook The 2025 guidance is based on ongoing operations and accounts for the Dockers brand being classified under discontinued operations. The projections are made under the assumption that US tariffs on imports from China will persist at 30%, and tariffs for the rest of the world will maintain at 10% for the remainder of the year, said the company. Levi Strauss raised its net revenue growth forecast by three percentage points: now expecting an increase of 1% to 2%, as opposed to an anticipated decline of 1% to 2%. Gross margin expansion expectations have been adjusted slightly to an increase of 80 basis points due to a tariff impact of 20 basis points after mitigation strategies are applied. Adjusted diluted EPS for the full year has been raised by $0.05: now projected at $1.25 to $1.30, up from the previous range of $1.20 to $1.25. Commenting on the latest update, Chloe Collins, head of apparel at GlobalData said Levi Strauss "proved its resilience in Q2". "The brand has been supported by the current popularity of Western fashion, as well as its partnership with Beyonce, with fans of the singer likely turning to the brand for outfits for her Cowboy Carter tour. This likely had a particular impact in Europe, which witnessed an impressive turnaround in Q2. "The brand also saw improved consumer confidence in some markets [of Europe] as well as the rollout of its Red Tab loyalty program to markets such as Poland, Ireland and Denmark, strengthening its direct-to-consumer proposition. "Asia showed the opposite trend, with sales down 0.8% in Q2 after growing 6.6% in Q1, which could be due to some anti-Americanism among consumers in countries that have been hit with high US tariffs, with Levi's particularly exposed to this drop in sentiment due to its strong US heritage. "In its home region, the Americas, sales growth only softened slightly at 5.1% versus 6.4% in Q1, with many shoppers bringing purchases forward before tariff price rises hit down. The brand clearly anticipates a slowdown in the second half as this happens." "Levi Strauss raises FY25 outlook amid strong Q2 performance" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
11-07-2025
- Business
- Yahoo
Levi Strauss reports 6% rise in Q2 revenue and raises FY25 outlook
US-based clothing retailer Levi Strauss & Co has reported net revenues of $1.4bn for the second quarter (Q2) of 2025, a 6% increase on a reported basis and 9% on organic basis. Levi Strauss' direct-to-consumer channel reported an 11% net revenue increase on a reported basis from Q2 2024, while its wholesale reported net revenues were up by 3% against the same period. The company's Levi's brand saw a 9% increase globally on an organic basis. Levi Strauss' gross margin saw a 140 basis points increase to 62.6%, primarily due to lower product costs and a favourable channel mix. The company reported net income from continuing operations of $80m - a considerable increase from the $17m registered a year previously. The company's adjusted net income was $89m, and its adjusted diluted earnings per share (EPS) increased to $0.22. Levi Strauss & Co CEO and president Michelle Gass stated: 'We delivered another strong quarter, reflecting broad-based strength across the board — clear evidence that our strategic agenda is gaining traction. 'We're entering the second half of 2025 from a position of strength as our ambition to transform into a denim lifestyle brand and best-in-class DTC [direct-to-consumer] retailer becomes our reality. Levi's is a brand that has a rich 172-year heritage and remains a global icon. As we look ahead, Levi's has an even bolder future with a bigger legacy — and quarter by quarter, we're building it.' Levi Strauss has updated its fiscal 2025 guidance, assuming US tariffs on imports from China remain at 30% and from the rest of the world at 10% for the remainder of the year. The forecast considers only the ongoing business activities, as the Dockers brand has been reclassified under discontinued operations. Levi Strauss anticipates reported net revenue growth to increase by three percentage points to 1% to 2%, up from a previous estimate of a decrease of 1% to 2%. Organic net revenue growth projections have also been raised by one percentage point to 4.5% to 5.5%, from 3.5% to 4.5%. Adjusted diluted EPS has been raised by $0.05 to $1.25 to $1.30, up from $1.20 to $1.25. Levi Strauss & Co chief financial and growth officer Harmit Singh said: 'Given our strong H1 and continued momentum across the business—and despite higher tariffs—we are raising our full-year revenue and EPS expectations. 'The continued inflection of our financial performance is a direct result of our laser focus on the core Levi's brand and our DTC-first strategy. We are fundamentally becoming a company with a higher growth rate, higher margin profile, stronger cash flows and higher returns on invested capital.' In May, Levi Strauss & Co agreed to divest its Dockers brand to Authentic Brands Group for a base sum of $311m. "Levi Strauss reports 6% rise in Q2 revenue and raises FY25 outlook" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Erreur lors de la récupération des données Connectez-vous pour accéder à votre portefeuille Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données Erreur lors de la récupération des données
Yahoo
11-07-2025
- Business
- Yahoo
Levi Sees Revenue Growth Offsetting Most of Tariff Impact
(Bloomberg) -- Levi Strauss & Co. jumped Friday morning after raising its revenue outlook, with the maker of 501 jeans expecting sales growth to outweigh the effect of President Donald Trump's tariffs. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Why Did Cars Get So Hard to See Out Of? Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? How German Cities Are Rethinking Women's Safety — With Taxis The company said Thursday it now sees revenue rising between 1% and 2% for the current fiscal year — above the average analyst estimate and up from a previous view that sales would decline 1% to 2%. Levi also slightly lowered its guidance for gross margin due to tariffs, which the company factored in as 30% for products imported from China and 10% for the rest of the world. The shares jumped 11% at 9:31 a.m. in New York. The stock had advanced 14% so far this year through Thursday's close. The results suggest that Levi's efforts to branch into new products and categories — part of what the company calls the 'head-to-toe denim lifestyle' — is paying off. Led by Chief Executive Officer Michelle Gass, Levi has sought to expand its offerings beyond its traditional denim pants, and its lineup now ranges from caps and aprons to backpacks. It's collaborating with Nike Inc. to sell denim Air Max 95 sneakers. Levi is also looking to boost sales through its own stores and website. In a call with analysts Thursday afternoon, Harmit Singh, chief financial and growth officer, attributed the company's strong performance to its 'laser focus' on the core Levi's brand and its direct-to-consumer strategy. 'Our e-commerce business is now a profitable business,' he said. 'It used to be a drag.' Jeans remain at the top of the company's best sellers, but it's making progress selling polo shirts and T-shirts for men, and jackets, dresses and tank tops for women. The company said it has seen a higher sell-through of its full-priced products. 'The brand is resonating with millennials and Gen Z, and growth is accelerating in women's and new categories, fueled by direct-to-consumer and an expanding wholesale business,' said Bloomberg Intelligence senior analyst Mary Ross Gilbert. On one resale platform, the blue sneakers from Levi's collaboration with Nike are already selling for between $339 and $999. Tariff Impact The impact of tariffs on profitability, excluding mitigation efforts, is expected to be $25 million to $30 million through the end of the year, Singh told Bloomberg News in an interview. Revenue for the quarter ended June 1 rose 6% to $1.4 billion, beating the average estimate of analysts. On an annual basis, sales grew for a fifth straight quarter, while Wall Street had expected a decline. More than half of Levi's US merchandise needs for the rest of the year have already been imported into the country, Singh said. The company has tried to mitigate the effect of tariffs by making 'targeted' pricing changes, diversifying its supply chain and negotiating with vendors. Earlier this year, Levi was one of the first big apparel companies to report earnings after Trump announced sweeping tariffs on April 2. The company's previous guidance didn't factor in tariffs, but since then, a number of competitors have flagged their expected effects along with general consumer caution. American Eagle Outfitters Inc. pulled its guidance altogether, citing discounting and excess inventory among other issues. Shares of Gap Inc. plunged in late May after the company projected a tariff hit of as much as $300 million. --With assistance from Subrat Patnaik. (Updates with share trading in fourth paragraph and additional context in tenth and eleventh paragraphs.) Trump's Cuts Are Making Federal Data Disappear Will Trade War Make South India the Next Manufacturing Hub? 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Soccer Players Are Being Seriously Overworked 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
