Levi’s reports 'better than expected' first quarter sales as it maintains full year outlook

US denim giant Levi Strauss & Co. has reported sales up 3% to $1.5 billion (£1.1 billion) for the first three months of its financial year to 2 March 2025, versus Q1 2024, despite "uncertain environment".

The company also maintains its full year outlook "excluding the impact of recent tariffs" imposed by US President Donald Trump.

Michelle Gass, President and CEO of Levi Strauss & Co., said: "We exceeded revenue and profitability expectations in Q1 marking a strong start to the year, another proof point that our transformation strategy is working.

"The Levi’s brand is stronger than ever, and we will continue to fuel this momentum through a robust product pipeline and by keeping the brand firmly at the centre of culture across the globe.

"While we recognise that we are operating in an uncertain environment, our global footprint, strong margin structure, and agile supply chain position us to navigate the balance of the year and beyond."

Levi’s Q1 financial highlights include:

• In the Americas, net revenues increased 6% on a reported basis and 11% on an organic basis. Within the Americas, the US grew 8% on an organic basis.
• In Europe, net revenues decreased 5% on a reported basis and increased 3% on an organic basis.
• Asia net revenues increased 7% on a reported basis and 10% on an organic basis.
•  Beyond Yoga net revenues increased 10% on a reported and organic basis.
• Direct-to-consumer net revenues increased 9% on a reported basis and 12% on an organic basis. DTC growth on an organic basis reflected an 8% increase in the US, an 11% increase in Europe, and a 14% increase in Asia.
• Net revenues from e-commerce grew 13% on a reported basis and 16% on an organic basis. DTC comprised 52% of total net revenues in the first quarter.
• Wholesale net revenues decreased 3% on a reported basis and increased 5% on an organic basis.
• Operating margin was 12.5%, compared to 0.04% in Q1 2024. Adjusted EBIT margin increased to 13.4% from 9.4% last year on a reported basis, primarily due to higher gross margin
•  Gross margin increased to 62.1% from 58.8% in Q1 2024, primarily driven by lower product costs and favourable channel and brand mix.

Harmit Singh, Chief Financial & Growth Officer of Levi Strauss & Co., said: "We delivered significant margin expansion and double-digit earnings growth in the first quarter, and the strong momentum continued through March.

"Looking forward, we are maintaining our 2025 top and bottom line guidance, which excludes any impact from the recent tariff announcements, and we anticipate minimal impact to our Q2 margin outlook.

"In addition, our strong balance sheet, improved structural economics and the underlying strength of our business all give us confidence in our path forward."