“We achieved excellent financial results in the first quarter, driving strong double-digit revenue growth and record gross margin enabling us to deliver adjusted EBIT margin of 14.9 percent. The ongoing consumer demand across our portfolio of brands and our proven ability to deliver profitable growth give us the confidence to reaffirm our full-year outlook despite the incremental headwinds from ongoing macro challenges,” said Harmit Singh, Chief Financial Officer.
Levi’s total inventory increased 20% compared to the same-year period. So far in 2022, the company has made a continued effort to build core inventory and capture consumer demand.
Net revenue for Q1 increased 22% to $1.6 billion year-over-year. Global direct-to-consumer net revenue was up 35% from 2021, reflecting a 48% gain in company-operated stores. Global wholesale net revenues grew 15% versus the same period in 2021, reflecting strong demand for the Levi’s brand.
Direct-to-consumer net revenues increased 31% due to strength in company-operated stores as consumers returned to in-person shopping. Net income in the quarter was up 37% to $196 million from $143 million compared to 2021.
“We started the year with strong consumer demand and solid momentum across geographies, channels and categories. Our teams’ disciplined execution of our strategic priorities enabled us to deliver strong top and bottom-line growth as we capitalize on structural tailwinds and successfully manage a dynamic operating environment. The strength of our brands and strategy position us to deliver sustainable growth well into the future,” said Chip Bergh, President and CEO.