Levi Strauss has upped its 2021 guidance following strong revenue and profit growth in the second quarter of the year.
In the three months to May 30, the company swung to a net income of 65 million dollars compared to a net loss of 364 million dollars a year before.
Net revenue was up 156 percent to 1.28 billion dollars compared to a year earlier when the pandemic caused worldwide store closures.
Breaking it down by channel, wholesale net revenues increased 167 percent, Direct-to-Consumer (DTC) was up 141 percent, and e-commerce grew 42 percent despite stores re-opening across the company’s worldwide estate.
Compared to pre-Covid 2019 levels, revenue was down 3 percent.
“We generated strong momentum in the second quarter with the accelerated recovery of our revenues and delivered growth across all regions and channels,” president and CEO Chip Bergh said in a release.
“This was underscored by the strength of our brands and our ability to capitalize on evolving denim trends and a continued shift to casualization.”
In light of the strong results, Levi Strauss has upped its guidance and now expects reported net revenue growth of between 28 percent and 29 percent for the second half of the year.
“As we move into the second half of 2021, we are focused on emerging stronger with our strategic priorities of leading with our enduring brand, accelerating our direct-to-consumer connections, and diversifying across categories, channels and geographies,” Bergh added.