Levi Strauss & Co. (NYSE: LEVI) delivered a robust second quarter performance, with net revenues rising 8% year-over-year to 1.65 billion, surpassing analyst estimates of 1.59 billion. The 170-year-old denim pioneer credited its success to three key factors:

1. Premiumization Strategy:
   • 22% growth in $100+ premium denim category
   • Levi’s Authorized Vintage line now 8% of total sales
   • Average unit retail price up 14% YoY
2. Direct-to-Consumer Expansion:
   • Company-operated stores revenue jumped 15%
   • E-commerce grew 19% with mobile app conversions up 27%
   • New AI-powered styling tool increased basket size by 11%
3. International Strength:
   • Asia Pacific revenues surged 21%
   • India became 5th $100M+ market
   • European sales up 9% despite economic slowdown

“Consumers are trading up, not trading out,” said CEO Michelle Gass, noting that denim has become a “wardrobe staple” across generations. The company raised its full-year guidance to 6-8% growth, sending shares up 7% in after-hours trading.