Levi Strauss announced financial results for the second quarter ended May 28, 2023.
Article continues below
Net revenues of $1.3 billion decreased 9% on reported and constant-currency bases versus Q2 2022. Net revenues related to the planned shift in wholesale shipments from Q2 to Q1 primarily due to the U.S. ERP implementation negatively impacted Q2 by approximately $100 million or 7% of net revenues.
DTC net revenues increased 13% on a reported basis and 14% on a constant-currency basis, driven by broad-based growth in both company-operated mainline and outlet stores and e-commerce. E-commerce increased 20% on a reported basis and 21% on a constant-currency basis reflecting double-digit growth across all segments.
Wholesale net revenues decreased 22% on reported and constant-currency bases as strong growth in Asia and Latin America was offset by declines in North America and Europe.
Adjusting for the shift in wholesale shipments from Q2 into Q1, global wholesale net revenues were down low-double-digits on top of nearly 20% constant-currency growth in the prior year. Global wholesale net revenues in the first half were up low-single-digits versus 2019.
In the Americas, net revenues decreased 22% on reported and constant-currency bases. DTC net revenues increased 6% driven by strong performances in our company-operated mainline stores and e-commerce.
Wholesale net revenues decreased 33%, largely driven by the aforementioned shift in wholesale shipments, as well as softer performance in the U.
.
In Europe, net revenues decreased 2% on reported and constant-currency bases; excluding Russia, net revenues increased 1% on a constant-currency basis.
DTC net revenues increased 7% on a reported basis and 6% on a constant-currency basis, and 14% excluding Russia, driven by strength in company-operated stores and e-commerce. Wholesale net revenues decreased 10% on reported and constant-currency bases, reflecting the cautious order environment among wholesale partners.
Asia net revenues increased 18% on a reported basis and 27% on a constant-currency basis, reflecting growth across almost all markets, including strong growth in China.
DTC net revenues rose 30% on a reported basis and 41% on a constant-currency basis, driven by strength in our company operated mainline and outlet stores and e-commerce. Wholesale net revenues increased 5% on a reported basis and 13% on a constant-currency basis. ■