Levi Strauss has surpassed analysts’ expectations with strong quarterly results, but warns of a challenging year ahead. To remedy that, the American jeans manufacturer aims to increase sales to women.
Beyoncé gave
Levi’s reported a fourth quarter revenue of 1.84 billion dollars (approximately 1.8 billion euros), a 12 % increase compared to the previous year and well above analysts’ expectations. Direct-to-consumer sales rose 19 % during the quarter, now accounting for 45 % of total revenue. Net profit also climbed significantly from 126.8 to 182.6 million dollars (175 million euros)
Full year revenue increased 3 % to 6.4 billion dollars (6 billion euros). The gross margin was 60 %, an increase of 310 basis points compared to 2023. In September, Levi’s signed a major marketing deal with Beyoncé, after the singer released a song about the brand on her album “Cowboy Carter” earlier that year. “Of course, we have to acknowledge the Beyoncé effect“, CEO Michelle Gass told CNBC.
Trump may take away
The question remains whether the American clothing brand can maintain this growth in 2025. Levi’s global operations are under pressure from the strong US dollar, which diminishes the value of foreign income. Additionally, the American retail sector is bracing for high import taxes threatened by Donald Trump, but CFO Harmit Singh reassuringly counters that by saying that less than 1 % of Levi’s products originate from China, where Trump proposes a 10 % import tariff.
For this year, the jeans manufacturer anticipates a revenue decline of 1 to 2 %, primarily due to the strong dollar. Levi’s hopes to attract more female customers: currently, 36 % of revenue comes from women’s clothing, but the goal is to increase this to 50 % in the long term.
