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Bloomberg
Levi Strauss & Co reported quarterly revenue that fell short of expectations, and the denim maker also reduced its outlook for the full year, citing economic uncertainty along with supply-chain disruptions and a stronger US dollar.
Revenue in the fiscal third quarter ended August 28 was $1.52 billion, below the $1.6 billion average estimate of analysts surveyed by Bloomberg. Earnings per share, excluding some items, was 40 cents, surpassing analyst expectations.
Levi now sees adjusted earnings per share at $1.44 to $1.49 for the full fiscal year. That’s down from the past projection of $1.50 to $1.56. The reduction is due to less-favourable currency effects, the company said.
Revenue in the third quarter was held back by weaker demand, unfavourable foreign-exchange rates and supply-chain costs, Chief Financial Officer Harmit Singh said in an interview. The company said selling, general and administrative expenses rose from a year earlier on higher distribution costs and investment in the information technology and its
direct-to-consumer business.
“Overall, in light of the backdrop that everybody is experiencing, it is definitely getting more challenging out there, with inflation beginning to have an impact, concerns about a recession and interest rates going up,†Chief Executive Officer Chip Bergh said in an interview. Geopolitical uncertainty is having an impact on companies, especially amid high energy prices.