Levi ecommerce increased 14% and Lululemon ecommerce increased 46% in their respective recently ended fiscal quarters.

Levi Strauss & Co. reported $1.69 billion in net revenue for its fiscal first quarter ended Feb. 26, 2023. That’s up 6% from $1.59 billion in the previous fiscal Q1. However, the denim brand reported gross margin was 55.8%. That’s below the 59.3% margin it reported for the year-ago quarter. Levi inventory increased 33% year over year as well.

Lululemon Athletica Inc. reported $2.77 billion in net revenue for its fiscal fourth quarter, which ended Jan. 29, 2023. That’s up 30% from $2.13 billion in the previous fiscal Q4. Similar to Levi, Lululemon gross margin decreased to 55.1%. The athletic apparel retailer‘s inventory increased to $1.4 billion for the fiscal year. That’s up 50% from $966.5 million in 2021.

Levi ranks No. 196 in the Top 1000, Digital Commerce 360’s database of the largest North American online retailers. Lululemon ranks No. 32.

Levi ecommerce and direct-to-consumer sales

Levi direct-to-consumer sales comprised 42% of Q1 net revenue. That’s 12% growth on a reported basis, and 16% on a constant-currency basis. The retailer attributed the increase to “growth in both company-operated stores and e-commerce across all segments.”

As a percentage of first quarter company net revenues, Levi DTC store sales comprised 33% of net revenue. Levi ecommerce sales comprised 9% of net revenue. Levi DTC and ecommerce sales combined for the above-mentioned 42% of net revenue. Furthermore, Levi ecommerce increased 11% on a reported basis and 14% on a constant-currency basis.

Chip Bergh, president and CEO, said the levi.com growth came “even with consumers returning to our stores in large numbers.”

Levi wholesale net revenue increased 2% on a reported basis and 4% on a constant-currency basis.

Bergh said Levi loyalty membership also increased 40% in Q1 to nearly 25 million members.

“This continues to translate to a higher level of spend among loyalty members,” Bergh said.

The Dockers brand’s ecommerce sales “remained robust with over 30% growth,” he said. Bergh attributed that growth to increased repeat customers and the brand’s loyalty program. He said the brand’s loyalty program now drives over 30% of ecommerce sales across the U.S. and Europe.

Lululemon ecommerce and DTC sales

For its fiscal Q4, total Lululemon DTC revenue represented 52% of total net revenue. That’s up from 49% in the year-ago quarter.

Lululemon DTC store sales increased sales 10%. And Lululemon ecommerce grew 46% overall. By region, Lululemon ecommerce grew 46% in North America and 39% internationally.

The brand ended Q4 with 655 stores around the globe, said Megan Frank, chief financial officer. She said traffic to Lululemon ecommerce sites and apps increased more than 45% globally. On a three-year CAGR basis, she said, traffic is up 7% in stores and 40% in ecommerce.

Frank said digital revenue comprised $1.4 billion, 52% of total revenue. Lululemon comparable sales increased 30% in Q4, she said. In-store comparable sales increased 17%, and Lululemon ecommerce comparable sales increased 39%.

Levi earnings summary

For the fiscal first quarter ended Feb. 26, Levi reported:

• $1.69 billion in net revenue. That’s up 6% from $1.59 billion in the previous fiscal Q1.
• Gross margin was 55.8%. That’s below the 59.3% margin in the year-ago quarter.
• Levi ecommerce increased 11% on a reported basis and 14% on a constant-currency basis. Additionally, Levi ecommerce sales comprised 9% of net revenue.
• Levi ecommerce and overall DTC sales combined for 42% of net revenue.

Lululemon earnings summary

For the fiscal fourth quarter ended Jan. 29, Lululemon reported:

• $2.77 billion in net revenue. That’s up 30% from $2.13 billion in the previous fiscal Q4.
• Lululemon ecommerce grew 46% overall. By region, Lululemon ecommerce grew 46% in North America and 39% internationally.
• Traffic to Lululemon ecommerce sites and apps increased more than 45% globally.
• Lululemon ecommerce revenue comprised $1.4 billion, 52% of total revenue.
• Lululemon DTC store sales increased sales 10%.

For the fiscal year ended Jan. 29, Lululemon reported:

• $8.11 billion in net revenue. That’s up 30% from $6.26 billion in the previous fiscal Q4.
• Total comparable sales increased 25%, or 28% on a constant-currency basis.
• DTC net revenue increased 33%. Lululemon DTC sales represented 46% of total net revenue. That’s up from 44% in the previous fiscal year.
• More than 9 million members in its loyalty program.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.

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