Levi Strauss saw online sales fall across its markets in the final quarter of its financial year, as shoppers returned in-store to buy.
Digital net revenues were down by 7% across its operations in the fourth quarter, although they were 29% higher than a year earlier. Some 20% of sales took place online, up from 16% in the fourth quarter of 2019.
Within Levi’s direct-to-consumer business, fourth quarter net revenues were 2% down on the previous year. But when the effect of store closures in Russia was excluded, sales were 10% up on the previous year – with strong growth in the Americas, Asia and Europe. Some 31% of fourth quarter net revenues took place in direct-to-consumer shops and 8% via ecommerce. But an 8% decline in wholesale in the US and Europe offset strong growth in Asia and Latin America.
The clothing brand has reported full-year net revenues of $6.2bn (£4.98bn) in the year to November 27 2022. That’s 7% up on the previous year. Net income of $569m (£459.8m) was 3% up on the previous year.
In the fourth quarter of the year alone, net revenues of $1.59bn (£1.3bn) were 6% down on the same period a year earlier, and net income of $151m (£122.0m) was 1% down on last time.
Looking ahead, the brand expects full-year net revenues to be between 1.5% and 3% ahead of the previous year.
“In 2022, we delivered strong, profitable growth as well as significant market share expansion, demonstrating the enduring strength of our brands, the diversity of our business and our team’s focused execution of our strategic plan,” says Chip Bergh, president and chief executive officer of Levi Strauss & Co. “We continue to make progress against our strategic priorities, positioning us for further success in 2023. We remain the category leader in denim globally, making consistent market share gains year-over-year. Our high margin DTC business is delivering exceptional results and our diversification efforts provide additional growth drivers for sustainable long-term growth.”
Harmit Singh, Levi Strauss chief financial and growth officer, says: “We exited the holiday with continued momentum in our direct-to-consumer business and improving trends in Europe. Coupled with the strength of our brands and diverse portfolio, we are confident in our outlook for 2023 and our long-term growth targets.”
Levis is ranked Top250 in RXUK Top500 research.
