Levi Strauss narrows guidance after Q3 sales fall short of estimates; shares fall
Investing.com — Levi Strauss on Thursday narrowed its guidance after reporting third-quarter revenue that fell short of analysts estimates amid ongoing U.S.-led weakness in its wholesale business,
Levi Strauss & Co Class A (NYSE:LEVI) fell more than 3% in afterhours following the news.
Levi reported fiscal Q3 EPS of $0.28 on revenue of $1.51 billion. That topped Wall Street forecasts for EPS of $0.27 and revenue of $1.54B.
Wholesale net revenues fell 8% led by declines in North America and Europe.
Direct-to-consumer net revenue was up 14%, with Ecommerce increasing 19% for the quarter from a year earlier.
Total inventories increased 6% in Q3 year-on-year, and the company said it continues to expects to achieve inventory levels below prior year levels by year end.
Looking ahead to fiscal 2023, the company narrowed its net revenue growth guidance to a range of flat to up 1% year-over-year from a range of 1.5% to 2.5%, while adjusted EPS was maintained at $1.10 to $1.20.
The company hinted at cost cuts, saying it had commenced a «review its operating model and cost structure that should drive agility and material cost savings beginning in 2024.”
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