Levi Strauss reported first-quarter revenue of $1.74 billion, up 14% from a year earlier, beating analyst expectations on both the top and bottom line. Shares surged more than 9% after the results.
Why it matters: for the first time in its 173-year history, Levi earned more than half its revenue from selling directly to consumers, marking a structural shift away from the wholesale model that built the brand.
The numbers
Net income rose to $175.8 million, or 45 cents per share, from $135 million, or 34 cents per share, in the same quarter last year. Direct-to-consumer revenue grew 15.7% and now accounts for 52% of total sales. E-commerce specifically grew 17%.
Comparable direct-to-consumer sales increased 7%, the sixteenth consecutive quarter of growth in that metric.
Why the shift matters
Selling directly through owned stores and online channels gives Levi higher margins, better customer data, and control over the brand experience. The company has spent years investing in its own retail footprint and digital platform to reduce dependence on department stores and third-party retailers.
The milestone also insulates Levi somewhat from the tariff uncertainty affecting other apparel companies that rely on wholesale contracts with US retailers.
Guidance raised
Levi raised its full-year adjusted earnings per share guidance to $1.42-$1.48, up from prior estimates. The company now expects annual revenue growth of 5.5% to 6.5%, reflecting confidence that direct-to-consumer momentum will continue through the year.