Levi’s targets women’s apparel growth as sales and revenue climb

Levi Strauss raised its full-year net sales forecast again after second-quarter revenue rose 8% to $1.56 billion, topping Wall Street’s $1.52 billion estimate. The company’s latest results also showed where it sees the next leg of growth: women’s clothing sales jumped 11% in the quarter, even as Levi’s works to move beyond its denim base and into a broader apparel business.

Michelle Gass, Levi’s first-ever female chief executive, said women still account for barely 40% of company receipts, even though more than half of the company’s employees are female. That gap is now central to Levi’s strategy. Gass said Levi’s is still “under-serving the female consumer,” and the company is leaning into denim skirts, blouses, dresses and tops to widen its appeal without losing the heritage that made it a household name.

The push matters because the women’s market is materially larger than the men’s. Tom Nikic, an analyst at Needham, estimates the U.S. women’s apparel market is roughly 70% larger than the men’s market, which helps explain why brands that once skewed male are increasingly trying to win women shoppers. For Levi’s, the shift is not just about adding categories. It is about improving the economics of a brand that has historically depended on jeans and making more money from a customer base it has not fully captured.

There are signs the formula is working. Tops sales rose 5% in the quarter, with blouses, sweaters and polos outperforming graphic T-shirts. Levi’s premium Blue Tab line, with jeans priced close to $300, is still early but has been gaining traction, giving the company a higher-margin rung in its denim ladder. Management also said the direct-to-consumer business accounted for about 50% to 51% of revenue in the quarter, underscoring how much Levi’s is now relying on its own stores and website as part of the growth plan.

The company’s footprint is also increasingly global. About 60% of sales come from overseas, which makes Levi’s less dependent on the U.S. market and more exposed to international demand for both classic denim and newer apparel lines. Since Gass was hired in November 2022, Levi’s stock has climbed nearly 50%, and the company said it generated $6.4 billion in net sales over the last 12 months, its best stretch since 1997.