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October 6, 2023 : Levi Strauss & Co., the maker of iconic jeans brand Levi’s, cut its full-year sales forecast for the second time in three months on Thursday, citing the impact of inflation on consumers.
The company now expects net revenues to be flat to up 1% year-over-year, compared with its prior revenue growth forecast of 1.5% to 2.5%. Levi Strauss also lowered its adjusted earnings per share guidance for the year to $1.10 to $1.20, down from its previous range of $1.15 to $1.25.
The company’s revised outlook comes as inflation soared, reaching a 40-year high in the United States in June. Inflation strains household budgets, forcing consumers to cut back on discretionary items like clothing.
Levi Strauss is one of many apparel retailers hit by inflation. Other companies like Gap Inc. and H&M have also reported disappointing earnings recently.
The company’s revised outlook indicates that the apparel industry faces significant challenges in the current economic environment. However, Levi Strauss remains a well-positioned company with a strong brand and a loyal customer base. The company also invests in new initiatives like e-commerce and direct-to-consumer sales to drive future growth.
Levi Strauss’s revised outlook reminds us of the challenges facing the apparel industry in the current economic environment. However, the company remains well-positioned to navigate this period and emerge stronger in the long term.
Levi Strauss, the company that makes Levi’s jeans, just lowered its sales forecast for the year. This is the second time they’ve done this in three months. They say it’s because people spend less on clothes because of inflation.
Levi Strauss isn’t the only clothing company that’s having trouble. Other companies like Gap and H&M are also struggling.
This is a tough time for the clothing industry, but Levi Strauss is a strong company with a loyal customer base. They’re also investing in new things, like online sales, to help them grow in the future.
