Levi’s particularly strong in DTC e-commerce
28/01/2022
Net revenues of $5.8 billion represented a year-on-year increase of 29%, although these figures were effectively flat versus the comparative fiscal period in 2019. Fourth-quarter (Q4) net revenues of $1.7 billion also experienced a double-digit boost of 22% when compared to the year previous, representing a gain of 7% over 2019.
The most sizeable Q4 increases came from direct-to-consumer (DTC) channels (up 25% versus 2020 and up 20% versus 2019), especially DTC e-commerce which surged 69% on the fourth quarter of 2019 (up 22% on Q4 2020).
While, by comparison, global wholesale Q4 net revenues saw a rise of 20% on 2020 figures, this gain was only marginal (1%) when considered against 2019’s pre-pandemic figures.
President and chief executive, Chip Bergh, commented that the company is now “stronger than ever before”, citing a “robust” financial performance despite the disruptions caused by covid-19. He added that Levi’s momentum has continued into 2022 and that the firm remains “well-positioned for long-term, sustainable growth”, particularly in the high-margin DTC segment.
Meanwhile, chief financial officer, Harmit Singh, said that the company had achieved multi-decade record revenues and profitability.
Levi’s, which published its first-ever sustainability report back in September, recently released a “circular” version of its 149-year-old 501 jeans made from organic cotton, sustainably sourced wood pulp and Circulose, a material made from recycled textiles by Swedish company Renewcell.
Image credit: Travis Geter for Levi’s (via Instagram)
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