Retail news that keeps industry pros in the know
Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.
According to its Q2 earnings report this week, Levi Strauss’s business isn’t as comfortable as its form-fitting 501’s.
Levi’s reported net income of $69 million, down 17% from a year earlier, on revenue of $1.3 billion. Shares dropped 12% on Wednesday and haven’t rallied since.
How short is too short? Levi’s said the cost of its March IPO ($29 million) cut into earnings. But I see a silver lining for the denim brand. A few sections of its business are faring better:
- Levi’s DTC arm grew 9%, fueled by updates to its e-commerce platform.
- Its women’s business grew by double-digits (consider that men’s makes up 70% of Levi's revenues).
- One surprise success story? Levi’s Coachella-favorited “jorts,” aka the mid-length shorts last seen on the werewolves of Twilight. The denim shorts' sales increased more than 50% during the quarter, per Levi’s CEO Chip Bergh.
Zoom out: No one said Levi’s ride back into the public markets wouldn’t be bumpy, especially with tariff concerns still hanging around.