Levi Strauss & Co Chief Executive Officer Charles Bergh revealed the company’s achievements in digital channels during the second quarter of 2021.
Lower promotions, price increases and sourcing savings also supported margins, said the company, known for its Signature and Levi’s 501 jeans.
Net revenue more than doubled to $1.28 billion in the second quarter ended May 30.
Revenues through digital channels rose 75 percent as people have taken to the ease of getting their orders delivered at their doorsteps.
Levi said it would improve its digital business by investing in distribution centers and its program that allows customers to pick up online orders in stores.
Levi’s digital business
Net revenues of $1.3 billion were up 156 percent versus second quarter of fiscal 2020; net revenues in the U.S. and China exceeded second quarter of fiscal 2019.
E-com growth rates accelerated sequentially from Q1 reaching 42 percent versus second quarter of fiscal 2020; Net revenues through all digital channels grew 75 percent versus second quarter of fiscal 2020 driven by strong performance across all regions; digital penetration as a percentage of total sales was approximately 23 percent.
Levi reported gross margin of 58.8 percent driven by Direct-to-Consumer net revenues, price increases, sourcing savings, lower promotions and more full-price selling. Operating margin of Levi was 8.3 percent; Adjusted EBIT margin expanded to a second quarter record of 9 percent.
E-commerce momentum continued despite store re-openings with growth of 42 percent reflecting the benefit of accelerating omni channel initiatives. DTC stores and e-commerce comprised 29 percent and eight percent, respectively, of total company net revenues in the second quarter.
The company’s global digital net revenues, which include revenues attributable to the company’s e-commerce sites as well as the online businesses of its pure-play and traditional wholesale customers, grew approximately 75 percent, and comprised approximately 23 percent of second quarter fiscal 2021 net revenues.
Levi Strauss said digital channels grew 61 percent in the Americas and represented 19 percent of the region’s sales in the quarter.
Levi Strauss said e-commerce revenues grew 75 percent in Europe. Levi Strauss said it achieved over 100 percent growth through all digital channels; digital net revenues represented a third of the region’s sales in the quarter.
Levi Strauss said company e-commerce revenues grew 75 percent in Asia. The Asia region’s 12 percent sales decline was partially offset by revenue growth through all digital channels of 83 percent; digital net revenues represented 15 percent of the region’s sales in the quarter.
Wipro is one of the IT partners of Levi Strauss. Wipro is helping to optimize the customer and user experience across all channels. Wipro provides global IT support services across Levi Strauss & Co.’s consumer digital technology space, including eCommerce, B2B Commerce, Consumer Data Hub, Omni Order Management, Retail Store Infrastructure, Retail Store applications, Point of Sale, and Global Retail Concierge.