9% drop in profits, but revenues up 7% to $6.2bn (£5bn)

  • Levi’s gross profit falls 9% to $887m (£716m)
  • 7% year-on-year increase in revenue to $6.2bn (£5bn)
  • Net revenue of $1.6bn (£1.29bn) in the fourth quarter represents a 6% year-on-year drop
  • Strong growth in DTC channel offsets decline in wholesale
  • European net revenues decrease 18% on reported basis, 4% impact from Russia suspension
  • Americas net revenues down 5%, growth in DTC business offset by decline in wholesale
  • Asia net revenues up 1% on reported basis, driven by both wholesale and DTC channels (excluding China)
  • Predicted increase of 1.5-3% in net revenue for the current financial year
  • Chip Bergh: ‘Our high-margin direct-to-consumer business delivers exceptional results’
  • Diversification efforts provide growth drivers for sustainable long-term growth

Despite a 9% decrease in gross profit to $887m (£716m) for the year ending November 27, Levi’s has reported a 7% increase in revenue to $6.2bn (£5bn). The company’s net revenue in the fourth quarter fell by 6% year-on-year at $1.6bn (£1.29bn), with strong growth in its direct-to-consumer channel offsetting a decline in wholesale. In Europe, net revenues dropped 18% on a reported basis and 8% on a constant-currency basis due to the suspension of business in Russia. In the Americas, net revenues fell by 5% on both reported and constant-currency bases, with growth in DTC business countered by a decline in the wholesale channel. Asia’s net revenues increased 1% on a reported basis (17% on a constant-currency basis) due to contributions from both wholesale and DTC channels, excluding China. Levi’s anticipates an increase of 1.5-3% in net revenue for the current financial year. Chip Bergh, CEO of Levi Strauss & Co., stated that their high-margin direct-to-consumer business is delivering exceptional results and diversification efforts are providing additional growth drivers for sustainable long-term growth.

Factuality Level: 10
Factuality Justification: The article provides accurate information about Levi’s financial performance, including gross profit, revenue, and net revenue changes in different regions, as well as the company’s outlook for the upcoming financial year. It also includes a quote from the CEO that supports the overall message.
Noise Level: 4
Noise Justification: The article provides relevant information about Levi’s financial performance and outlook, with a focus on gross profit, revenue, and the impact of different channels. It also includes quotes from the CEO. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions.
Financial Relevance: Yes
Financial Markets Impacted: Levi’s stock price and the retail industry
Financial Rating Justification: The article discusses Levi’s financial performance, including gross profit, revenue, and net revenue, as well as its predictions for future growth. This information is relevant to investors and can impact the company’s stock price and the retail industry as a whole.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text.

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