
Levi Strauss & Co. is starting the year strong,
with first-quarter sales and profits topping expectations. The company credits marketing, its splashy Super Bowl activations, musical events and strong performance in its direct-to-consumer channels
with driving net revenues to $1.7 billion, a 14% increase, as the company’s transformation efforts continue to take hold.
In the Americas, sales rose 9%, and in the U.S., sales added 4%.
Revenues for its Beyond Yoga brand gained 23%. Sales for its D2C channels jumped 16%, while wholesale revenues advanced 12%, as consumers continue to move beyond jeans into broader denim
categories.
Net income from continuing operations climbed to $177 million, from $140 million in the first quarter of last year.
CEO Michelle Gass used an earnings call with investors
to take a victory lap for the brand's Super Bowl moment, held at Levi's Stadium. "Few brands can authentically play across so many facets of culture, sports, fashion and music in a way Levi's
consistently does," she said, pointing to 360-degree activations that included product drops, live music, workshops and in-store celebrity and athlete engagements.
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She also detailed how the
new "Behind Every Original" campaign is rolling out across the year, featuring global musician brand ambassadors Doechii, Questlove and
Blackpink’s Rosé, and basketball superstar SGA. The company has also announced a multiyear global partnership with Rosé, including co-created pieces coming to market later this
year.
"Our evolution into a D2C-first denim lifestyle brand is allowing us to capture a much larger addressable market and deliver faster and more consistent growth," Gass said.
On the
music front, Levi's also announced Emergent, a global program launching with performance platform Colors X Studios, designed to spotlight artists shaping culture around the world. The inaugural class
spans six countries — Mexico, South Africa, the United States, the United Kingdom, France and Japan — and kicks off with Kevin Kaarl, a folk performer and influential voice in contemporary
Latin music.
"Levi's has always been an unofficial uniform for those shaping culture through music," said Kenny Mitchell, global CMO. "Colors has built a platform that reflects that same
instinct for finding what's real and what's next."