Levi Strauss & Co. (NYSE:LEVI) kicked off the fiscal year 2024 with robust first-quarter results, showcasing a notable gross margin performance and earnings that exceeded market expectations.

The company achieved a gross margin of 58.2%, representing a 240 basis point increase from the prior year.

This improvement is largely attributed to decreased product costs and an advantageous shift in the product mix.

Although the company recorded a diluted loss per share of $0.03 due to restructuring charges, its adjusted earnings per share were positively pegged at $0.26.

Bolstered by these strong results, Levi Strauss & Co. is projecting a revenue growth of 1-3% for the fiscal year and has increased its earnings per share forecast to between $1.17 and $1.27.

Meanwhile, the company's direct-to-consumer segment experienced a 7% rise, with a significant 10% growth within the U.S. market alone, underscoring the success of the company’s strategic focus on its DTC business.

Despite a net revenue decline of 8% to $1.6 billion, primarily due to timing shifts in wholesale shipments, the brand remains positive about achieving mid-single-digit growth as the year progresses.