San Francisco-based denim brand Levi Strauss & Co. reported net revenues for the second quarter of 2018 grew 17 percent on a reported basis and 13 percent excluding $35 million in favorable currency translation effects, driven by broad-based Levi’s brand growth in all regions and channels.
On a reported basis, direct-to-consumer revenues grew 19 percent on performance and expansion of the retail network, as well as e-commerce growth. The company had 53 more company-operated stores at the end of the second quarter of 2018 than it did a year prior. Wholesale reported revenues grew 14 percent reflecting higher revenues in all regions.
On a reported basis, gross margin for the second quarter was 53.9 percent of revenues compared with 52.3 percent in the same quarter of fiscal 2017, reflecting the margin benefit from revenue growth in the direct-to-consumer channel and international business, a favorable transactional impact of currency and lower product sourcing costs.
“We delivered our third consecutive quarter of double-digit revenue growth, driven by the disciplined execution of our strategies and our more diversified portfolio,” said Chip Bergh, president and chief executive officer, Levi Strauss & Co. “These results have outpaced the industry and exceeded even our own expectations, and as a result, we are raising our full-year revenue guidance.”