Levi Jumps Most Since 2020 After Cost Cuts Drive Profit Beat
- Revenue fell less than expected in the first quarter
- Double-digit drop in wholesale business weighed on results
The company is focusing on its direct-to-consumer operations, which include Levi’s own stores and website.
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Levi Strauss & Co. jumped after cost-cutting measures boosted profitability and a bet on baggy jeans and denim skirts drove higher-than-expected sales.
The retailer, which announced a cost-cutting and productivity plan in January, said those measures are now paying off. Levi Chief Executive Officer Michelle Gass, who took over as CEO in January, has also focused on introducing fresh merchandise. These products, including denim skirts and non-denim activewear pants, have helped drive demand and are beginning to support wholesale growth, she said.