Levi's net revenue is falling, but their D2C business continues to grow. Here's what you need to know:
- While Levi's first quarter net revenue fell 8% year over year, their D2C business saw a 13% rise overall with a 10% rise in the U.S. alone.
- Levi's D2C business contributed 48% of the company's net revenue, an all-time high for the channel.
- Younger generations, particularly Gen Z, show a preference for D2C channels, with 43% preferring to buy directly from a brand's online store.
- D2C growth offers advantages such as full control over the customer journey, valuable data insights, and higher margins by cutting out intermediaries.
- Levi attributes its double-digit ecommerce growth to investments in enhancing the online shopping experience, including improved search, navigation, and product imagery.
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