European Sales Decline and Revenue Growth Guide Lowered
- Levi Strauss & Co reports stagnant profits
- European direct-to-consumer net revenues fell by 21% and wholesale net revenues decreased by 16%
- Net revenues for digital channels dropped by 18%
- Total group net revenues increased by 1% compared to Q3 2021
- Lowered net revenue growth guide from 12% to 6.7-7% for the fiscal year ending November 2022 due to cost-of-living crisis
Levi Strauss & Co has reported stagnant profits for the three months ended August 28, 2022, citing unfavorable currency exchanges and higher product costs as key barriers. European direct-to-consumer net revenues fell by 21% on a reported basis and 14% on a constant-currency basis, while wholesale net revenues decreased 16% on a reported basis and 5% on a constant-currency basis. Net revenues for the company’s digital channels dropped by 18%, representing 24% of segment sales in Q3 2022. Despite these challenges, total group net revenues increased by 1% compared to Q3 2021, driven by strong performance in the Americas and Asia. The retailer has lowered its net revenue growth guide from around 12% to between 6.7% and 7% for the fiscal year ending November 28, 2022 due to the cost-of-living crisis. CEO Chip Bergh remains optimistic about the company’s ability to deliver on long-term objectives despite the challenging environment.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Levi Strauss’ financial performance, including specific numbers and percentages, and quotes from the company’s CEO. It does not contain any irrelevant or misleading information, sensationalism, redundancy, opinion masquerading as fact, bias, invalid arguments, logical errors, inconsistencies, or fallacies.
Noise Level: 3
Noise Justification: The article provides relevant information about Levi Strauss’ financial performance and outlook, including specific numbers and insights from the CEO. It stays on topic and does not dive into unrelated territories. However, it could benefit from more analysis or context to provide actionable insights or new knowledge for readers.
Financial Relevance: Yes
Financial Markets Impacted: Levi Strauss’s financial performance impacts its stock value and may affect the textile and apparel industry.
Financial Rating Justification: The article discusses Levi Strauss’s financial performance, including gross profits, net revenues, and revenue growth, which are all relevant to finance. Additionally, it mentions the impact of the cost-of-living crisis on their future guidance, which could affect stock value and the textile and apparel industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the text.
www.retailsector.co.uk