Levi Strauss is experiencing a resurgence in denim demand among consumers, but this hasn't translated into a significant sales increase for the company. Although the company reported strong earnings in the second quarter due to direct sales and cost-cutting efforts, revenue fell just short of Wall Street's expectations. The company's net income reached $18 million, with sales rising to $1.44 billion, up 8% from the previous year. However, Levi's faced challenges in foreign exchange conditions and sluggish sales at Docker's, impacting overall performance. Levi's is undergoing a transition to a more direct-to-consumer approach, with DTC sales seeing an 8% increase and accounting for 47% of total sales. While the pivot to direct sales presents opportunities for higher profits and consumer engagement, there are also challenges such as increased costs and potential sales disruptions. Levi's remains cautiously optimistic about its full-year outlook, with a focus on accelerated, profitable growth.