Denim maker Levi Strauss & Co. reports quarterly sales that slightly missed expectations. For the fiscal second quarter ending 26th May, revenue was US $ 1.44 billion, just shy of the average analyst estimate of US $ 1.45 billion. Despite profits exceeding expectations, the company maintained its full-year outlook.
“Although their sales growth looks OK, Wall Street was expecting more given the current popularity of denim and the fact Levi’s was up against a very soft comparative from 2023 when sales shrunk,” said Neil Saunders, retail managing director at GlobalData. He added that the full-year guidance is “quite cautious given that last year revenues came in flat.”
Top executives emphasised that their strategy of selling more apparel directly to consumers through Levi’s stores and website is enhancing profitability and will help mitigate any broader consumer weakness.
Chief Financial and Growth Officer Harmit Singh mentioned in an interview that upcoming elections in the US, France, and the UK contribute to economic uncertainty, which has “become a part of life” for most companies. He noted that gross margin, which exceeded market expectations in the recent quarter, is improving due to the company’s focus on women’s apparel and its direct sales channels.
