Levi Strauss & Co. reported adjusted earnings per share of $0.40, above analyst estimates of $0.37. Revenue of $1.52 billion came in below expectations of $1.60 billion.
Additionally, the company reduced its annual forecast for revenue and earnings. It now expects adjusted EPS of $1.44-$1.49 (vs. $1.50-$1.56) and revenue of $6.15-$6.17 billion (vs. $6.40-6.50). 🔻
Driving the reduced earnings is a significant currency headwind from a strong U.S. Dollar, ongoing supply chain disruptions, and a more cautious outlook for the North American and European economies. It noted signs of weakness in lower-income consumers, similar to what many other companies have reported. 👎
Some positives mentioned are the “casualization tailwinds” that emerged as jeans became more acceptable in the office. Additionally, it doesn’t have to discount its inventory as much as other retailers because it can be sold through multiple seasons. 👍
Overall though, investors saw more negatives than positives today and sent $LEVI shares down nearly 10%. 📉
