Levi Strauss & Co. reported Jan. 25 that its net revenue decreased to $1.6 billion in the fiscal fourth quarter ended Nov. 27, 2022. That’s down 6% from the year-ago period. However, Levi revenue for the full fiscal year grew to $6.2 billion, which is a 7% year-over-year increase.
Levi direct-to-consumer and ecommerce sales
The brand grew 6% above 2019’s pre-pandemic level, president and CEO Chip Bergh said in a call with investors, according to a Seeking Alpha transcript. Levi made “excellent progress” growing its global direct-to-consumer business, he said, adding that Levi’s DTC sales increased 18% in the fiscal year and mid-single-digit growth in the fiscal fourth quarter.
DTC sales comprised a fourth-quarter record 39% of total company net revenue, he added. In the United States, specifically, Levi’s DTC broke its own fourth-quarter record in both physical store sales and ecommerce sales, Bergh said. He did not break out dollar amounts. Levi also opened 11 stores in the United States in the fourth quarter.
Harmit Singh, chief financial and growth officer, said Levi’s ecommerce grew 5% in the fourth quarter despite consumers returning to the brand’s physical stores in large numbers in 2022.
The brand grew its loyalty members program 50% year over year to nearly 23 million. The Levi app is also available in 18 countries including the U.S., India and parts of Europe.
The jeans brand ranks No. 196 in the Top 1000, Digital Commerce 360’s database of the largest North American online retailers.
Levi personnel changes
The retailer onboarded Michelle Gass as its new president in January. Bergh said she brings “deep omni-retail experience and strong brand building skills.” Gass will be responsible for the Levi’s brand, including its ecommerce and wholesale divisions.
Gass left Kohl’s Corp. in December after nine years, including more than four years as its CEO. Kohl’s ranks No. 21 in the Top 1000.
The week before its earnings call, Levi announced it hired a new chief digital officer, Jason Gowans. Before joining Levi, Gowans was senior vice president of digital commerce at Nordstrom Inc. He was with Nordstrom, No. 20 in the Top 1000, for 10 years.
Gowans “will focus on bringing together our engineering data AI and digital product management to spearhead our digital efforts for both ecommerce and our digital go-to market,” Bergh said.
For the fiscal fourth quarter ended Nov. 27, 2022, Levi reported:
- $1.6 billion in net revenue. That’s a 6% contraction compared with the fiscal fourth quarter in 2021.
- Net revenue in the Americas decreased to $840 million. That’s down 5% from the year-ago period.
- Levi ecommerce grew 5%, though the company did not specify dollar amounts.
For the fiscal year ended Nov. 27, 2022, Levi reported:
- Revenue grew to $6.2 billion. That’s up 7% compared with the previous fiscal year.
- “A high-single-digit increase in ecommerce,” though it did not specify how much.
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