Levi Strauss & Co. has reported its financial results for the second quarter of 2024, showing several key highlights. The company reported revenue growth of 8%, up 9% in constant currency, in line with company expectations. The gross margin reached a record 60.5%, up 180 basis points over the prior year. Global direct-to-consumer (DTC) revenue increased by 8%, with 11% growth in constant currency, including a noteworthy 12% growth in the U.S. The diluted EPS was $0.04, while the adjusted diluted EPS came in at $0.16, exceeding expectations.
In terms of specific financials, net revenues for the second quarter were $1.4 billion, an 8% increase reported and 9% increase in constant currency compared to the same period in 2023. The Americas saw a significant 17% increase in net revenues, while Europe experienced a 2% decrease, showing a sequential improvement from the previous quarter. Asia's net revenues remained roughly in line with the prior year on a reported basis and increased by 6% in constant currency. Other brands' net revenues increased by 10% on both a reported and constant-currency basis.
DTC net revenues increased by 8% on a reported basis and 11% on a constant-currency basis, with e-commerce revenues growing by 19% on both reported and constant-currency bases. Wholesale net revenues grew by 7% on a reported basis and 8% in constant currency.
The company also provided a balance sheet review as of May 26, 2024, indicating that cash and cash equivalents were $641 million, with total liquidity at approximately $1.4 billion. Total inventories decreased by 7% on a dollar basis and 19% excluding the impact of modified terms with the majority of the company's suppliers.
Additionally, the company returned approximately $65 million to shareholders in the second quarter, a 36% increase over the prior year, including dividends of $48 million and share repurchases of $17 million.
Looking ahead, the company reaffirmed its fiscal 2024 guidance, expecting reported net revenues to be up 1% to 3% year-over-year, with adjusted diluted EPS expected to be between $1.17 to $1.27.
Today the company's shares have moved 0.5% to a price of $23.12. Check out the company's full 8-K submission here.