Levi’s has reported a revenue boost for 2022 as its direct-to-consumer sales rise and demand for denim holds up.

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Levi’s predicts annual revenues between $6.3bn and $6.4bn

For the year to November 27, 2022, Levi’s reported a 7% increase in revenue year on year to $6.2bn (£5bn), which was up 12% on a constant-currency basis, while adjusted EBIT rose 8%.

Gross profit dropped 10% to $887m (£717m) and adjusted gross margin slipped to 55.8% due to unfavourable currency exchange rates, higher product costs and lower full-priced sales. 

Levi’s predicts annual revenues between $6.3bn and $6.4bn (£5.1bn and £5.2bn) for 2023. 

Chief executive Chip Bergh said: “In 2022, we delivered strong, profitable growth as well as significant market share expansion, demonstrating the enduring strength of our brands, the diversity of our business and our team’s focused execution of our strategic plan.

“We continue to make progress against our strategic priorities, positioning us for further success in 2023. We remain the category leader in denim globally, making consistent market share gains year over year. Our high-margin direct-to-consumer business is delivering exceptional results and our diversification efforts provide additional growth drivers for sustainable long-term growth.” 

The company also announced the promotion of Harmit Singh to chief financial and growth officer, effective immediately.

“Harmit has been a trusted partner and an integral part of this company for the past 10 years,” said Bergh.

“Last year, he served as the key architect behind the five-year growth plan laid out at our investor day and his expanded role will enable more direct control to execute against our strategic initiatives.”

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