Levi Strauss saw another quarter of strong sales, helped in part by higher prices, and direct-to-consumer sales made up more than half of its overall revenue — a milestone for a company that has long relied on wholesalers. The denim maker’s revenue grew by 14% while DTC sales through Levi’s own stores and website jumped 16%, bringing total DTC sales to 52% of overall revenue. In an interview with CNBC, CEO Michelle Gass said she expects DTC revenue to make up more than half of overall sales for the duration of the year, even as its more traditional wholesale channel continues to grow. The growth is not from increased sales volume alone: Levi is benefiting from higher prices and positive foreign exchange headwinds. Finance chief Harmit Singh, who announced plans to retire on Tuesday, said about half of Levi’s growth is related to recent price increases and half is tied to actual units sold. Given its first-quarter beat, Levi raised its guidance. It’s now expecting full-year adjusted earnings per share to be between $1.42 and $1.48, shy of expectations of $1.47 per share on the low end, according to LSEG.It’s expecting sales to rise between 5.5% and 6.5%, largely ahead of estimates of 5.6%, according to LSEG. Here’s how the apparel maker did in its first fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:Earnings per share: 42 cents adjusted vs. 37 cents expected Revenue: $1.74 billion vs. $1.65 billion expected The company’s reported net income for the three-month period that ended March 1 was $175.8 million, or 45 cents per share, compared with $135 million, or 34 cents per share, a year earlier. Sales rose to $1.74 billion, up about 14% from $1.53 billion a year earlier. Levi’s DTC-first strategy comes with bigger margins but also higher costs in the short term as it changes its distribution system, which has weighed on earnings. However, Singh said its sales are becoming more profitable as DTC scales. He also noted that Levi’s guidance could rise later in the year. Currently, it’s assuming a 20% global tarif …
