Levi’s revenues dip 9% in Q2

Levi Strauss and Co recently reported a 9% revenue decrease to $1.3bn (£1bn) for the period ended in May 2023. 

Wholesale net revenues decreased 22% on reported and constant-currency bases as strong growth in Asia and Latin America was offset by declines in North America and Europe. 

In the American continent, net revenues decreased 22% on reported and constant-currency bases. The company attributes this change to planned shifts in wholesale shipments as well as softer performance in the US.

In Europe, net revenues decreased 2% on reported and constant-currency bases while in Asia net revenues increased 18% on a reported basis and 27% on a constant-currency basis, reflecting growth across almost all markets, including strong growth in China

Levi’s reported a net loss of $2m (£1.5m) compared to net income of $50m (£39m) in Q2 2022. Adjusted net income was $15m (£11m) compared to $117m (£91m) in Q2 2022.

Chip Bergh, president and chief executive officer of Levi’s, said: “While U.S. wholesale remains pressured, we are pursuing initiatives to stabilise this business and drive market share gains. We are confident in our ability to navigate near-term headwinds and remain as optimistic as ever about the company’s future.”

For the rest of the year the company expects net revenues to grow between 1.5% and 2.5% year-over-year. 

Harmit Singh, chief financial and growth officer of Levi’s, said: “While we are adjusting our full year outlook, we expect H2 revenues up mid-single-digits and a low-double-digit adjusted EBIT margin as strong growth in our large DTC and International businesses continue. 

“As wholesale stabilises and COGS improve, our business model is uniquely positioned to generate significant financial leverage beyond 2023.”