Levi Strauss posts quarterly revenue miss, maintains annual forecast
What caused Levi Strauss's quarterly revenue miss?
Levi Strauss's quarterly revenue miss was caused by choppy wholesale demand in the United States, as well as the adverse impact of foreign exchange and increased marketing spend heading into the back-to-school and festive holiday seasons4. The company is pivoting to a direct-to-consumer business and prioritizing higher-margin products after an inventory glut last year caused several quarters of weakness in wholesale demand.
What strategic shift is Levi implementing in its business model?
Levi is pivoting to a direct-to-consumer business model and prioritizing higher-margin products to address the inventory glut and weaker wholesale demand. This strategic shift aims to improve profitability and adapt to changing consumer preferences.
How much did Levi Strauss's shares fall in extended trading?
Levi Strauss's shares fell by 12% in extended trading due to the company's second-quarter revenue miss and maintaining its annual profit and revenue forecast2. This was attributed to an adverse foreign exchange impact and steeper marketing spend for the back-to-school and festive holiday seasons.