Levi Strauss & Co.: Growth In Direct-to-Consumer (DTC) Propelling Its Success? 

Levi Strauss & Co reported revenues of $1.6 billion, reflecting a decline of 8% on a constant currency basis due to a $100 million shift from Q2 into Q1 related to the ERP implementation in the U.S. However, excluding this shift and the effect of exiting the Denizen business in Russia, Q1 revenues were flat. The company’s adjusted diluted earnings per share (EPS) were $0.26, which outperformed expectations. This improvement was mainly driven by a 240 basis-point increase in gross margin and prudently managing the company’s expenses. The favorable performance of the company during the quarter evidenced that their strategies of leading with their brands, operating as a direct[1]to-consumer-first business, and diversifying their portfolio are effective.