Levi Strauss & Co. (LEVI) has reported financial results that beat Wall Street forecasts on both the top and bottom lines.
The San Francisco-based company known for its blue jeans reported earnings per share (EPS) of $0.26 U.S. versus $0.21 U.S. that was expected among analysts.
Revenue for what was the company’s fiscal first quarter came in at $1.56 billion U.S. compared to $1.55 billion U.S. that was forecast on Wall Street.
Importantly, Levi’s said that it is now doing nearly half of all its sales through its own website and stores, relying less on wholesalers.
The company said that direct-to-consumer sales comprised a record 48% of its total sales, up from 42% a year ago. The shift to direct sales improves Levi’s profits.
Shifting away from wholesalers also reduces Levi’s exposure to department stores, which are declining in the U.S. and around the world.
Levi’s now says that it wants direct-to-consumer sales to account for 55% of all sales.
The company also raised its full-year guidance, saying it expects sales to rise between 1% and 3%. It anticipates earnings per share this year of $1.17 U.S. to $1.27 U.S.
Analysts had expected sales to grow, on average, at 2.4% on a full-year basis and earnings per share of $1.21 U.S., according to data from LSEG.
Levi’s has been working to diversify the products it sells, offering skirts, dresses, and shirts as well as the blue jeans that it is known for.
In January of this year, Levi’s announced that it would cut 10% to 15% of its corporate workforce, which is expected to save the company $100 million U.S. during the current year.
The stock of Levi Strauss is up 8% on news of the latest earnings print. Prior to today (April 4), the company’s share price had risen 15% this year.
