Levi Strauss Raises Profit Guidance Amid DTC Slump
Levi Strauss & Co. increased its annual earnings guidance following tariff refunds despite lowering revenue growth targets and reporting weak direct-to-consumer sales.
Levi Strauss & Co. increased its full-fiscal-year adjusted earnings per share guidance to between $1.54 and $1.56, up from a previous range of $1.46 to $1.52. This adjustment follows the receipt of tariff refunds, which CEO Michelle Gass stated are being redeployed toward marketing and promotions for the holiday season.
Despite the profit boost, the company lowered its net revenue growth guidance to 7%, the bottom of its previous 7% to 7.5% range. For the third quarter ending August 30, the company reported net revenues of $1.61 billion, a 4% increase from the previous year. However, U.S. revenue decreased by 1%, and while wholesale revenues grew 6%, direct-to-consumer performance fell short of expectations.
Addressing the results, Gass noted that "our DTC performance fell short of our expectations during the quarter" but added that the company has "already taken targeted actions to improve performance."
In a leadership transition, the company announced that John Vandemore will succeed Harmit Singh as chief financial officer on November 1.
