Solutions For RealSolutions For Real
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans

Subscribe to Updates

Get the latest finance news and updates directly to your inbox.

Top News

Should You Withdraw Your 401(k) Funds Before Retirement?

May 28, 2025

6 Ways to Avoid Paying to Check Bags When Flying

May 28, 2025

How Rookie Investors Are Beating Market Veterans in a Volatile Market

May 28, 2025
Facebook Twitter Instagram
Trending
  • Should You Withdraw Your 401(k) Funds Before Retirement?
  • 6 Ways to Avoid Paying to Check Bags When Flying
  • How Rookie Investors Are Beating Market Veterans in a Volatile Market
  • 7 Ways to Save Money Each Month That Therapists Call Emotional Labor
  • How Financial Stability Can Improve Mental Well-Being
  • How Companies Can Develop Leaders Who Actually Deliver Results
  • JPMorgan Is Opening ‘Affluent Banking’ Centers. Here’s Where.
  • Your Resume Might Be Great, But This Is What Makes People Say ‘Hire Them’
Wednesday, May 28
Facebook Twitter Instagram
Solutions For RealSolutions For Real
Subscribe For Alerts
  • Home
  • News
  • Personal Finance
    • Savings
    • Banking
    • Mortgage
    • Retirement
    • Taxes
    • Wealth
  • Make Money
  • Budgeting
  • Burrow
  • Investing
  • Credit Cards
  • Loans
Solutions For RealSolutions For Real
Home » Levi Strauss trims guidance as it weighs sale of Dockers business
News

Levi Strauss trims guidance as it weighs sale of Dockers business

News RoomBy News RoomOctober 3, 20240 Views0
Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email Tumblr Telegram

Denim-crazed consumers are turning to Levi Strauss & Co for new jeans, but the company’s overall business is being dragged down by its Dockers brand, which the company is now considering selling off, it announced Wednesday. 

Sales at Levi’s brand were up 5% during its fiscal third quarter — the biggest gain in two years — but overall revenue came in flat and lower than Wall Street had expected. 

Shares of Levi’s fell more than 8% in extended trading Wednesday.

Here’s how the denim-maker performed compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

  • Earnings per share: 33 cents adjusted vs. 31 cents expected 
  • Revenue: $1.52 billion vs. $1.55 billion expected

The company’s reported net income for the three-month period that ended Aug. 25 was $20.7 million, or 5 cents per share, compared with $9.6 million, or 2 cents per share, a year earlier. Excluding one-time items, Levi’s posted earnings of $132 million, or 33 cents per share. 

Sales came in at $1.52 billion, up slightly from $1.51 billion a year earlier. 

With one quarter left to go in the fiscal year, Levi reaffirmed its full-year adjusted earnings per share guidance of $1.17 to $1.27, in line with expectations of $1.25, according to LSEG. It expects earnings per share to come in at the midpoint of that range.

It trimmed its revenue guidance and is now expecting sales to grow 1%, compared to a previous range of between 1% and 3%. That’s below the 2.3% growth that analysts had expected, according to LSEG.

So long, Dockers

Levi’s, which owns its namesake brand, as well as Dockers and Beyond Yoga, would have printed quite a different set of results had it not been for Dockers. It started that brand in 1986 to offer consumers an alternative to denim: khakis. 

Throughout the 1990s and 2000s, khakis were a mainstay in most consumers’ closets but these days, it has fallen out of fashion. The efforts that Levi’s has made to differentiate Dockers led to too much overlap with the Levi’s brand, which has expanded into a lifestyle brand that offers a lot more products than jeans.

During the quarter, sales at Dockers were down 15% to $73.7 million while Beyond Yoga, the buzzy athleisure brand it acquired in 2021, saw sales grow 19% to $32.2 million. 

“Over the last couple of years, the brand has underperformed. … We felt this was the right decision for the long term. Our view financially is the exit of Dockers will improve the company’s overall margins and also minimize volatility in top line growth,” Levi’s finance chief Harmit Singh told CNBC in an interview. “We believe the exit of Dockers will allow both Dockers and Levi’s to independently operate and maximize each other’s value independently.” 

Levi’s has tapped Bank of America to lead the sale process. 

Direct gains

Beyond Docker’s, Levi’s is making gains in growing its profitability as it continues to shift its focus to selling directly to consumers.

During the quarter, its gross margin rose by 4.4 percentage points, which Singh attributed to the direct-selling strategy, lower cotton costs and better products that didn’t need to be marked down to be sold. 

Like other brands, Levi’s has been working to carve out its direct selling strategy and reach more customers through its own stores and websites rather than through wholesalers like Macy’s. The strategy is a boon to profits because the margins are higher and it also allows brands to get closer to their customers through data collection.

During the quarter, Levi’s direct channel was up about 10%, driven by strength in the U.S. and 16% growth in e-commerce. Overall, direct sales comprised 44% of total revenue and Levi’s wants to get that number closer to 55%.

Behind those numbers are a slew of splashy marketing campaigns, which include a new partnership the jeans brand announced with Beyoncé on Monday after the pop star released a song titled “LEVII’S JEANS” earlier this year on her country album.

“Our strategic decision was to actually have Beyoncé represent some of our core product. So in the first ad, chapter one, she’s in … 501s and an essential white t-shirt and it doesn’t get more Levi’s than that,” CEO Michelle Gass told CNBC. “Part of the success recipe for Levi’s has been and will continue to be us living in the center of culture and bringing together the icon of Beyoncé with the icon of Levi’s, I don’t think there’s any better example of that.”

Global woes

Sales in Levi’s Europe business came in higher than expected at $406.6 million, ahead of StreetAccount estimates of $392 million, but sales in the Americas and Asia came in lower. Levi’s posted $757.2 million in sales in the Americas, below the the $789.2 million that StreetAccount analysts had expected. In Asia, Levi’s saw revenue of $247.1 million, below StreetAccount estimates of $258 million. 

“China was a drag,” Singh said of the region, which represents about 2% of Levi’s overall business. “It’s got this macro headwinds, and we had some execution issues. We’ve just changed the leadership in China and over time we still believe in the long-term potential of China.”

In the Americas, beyond a slowdown at Docker’s, sales were also impacted by one of Levi’s largest wholesale customers in Mexico, Singh said. During the quarter, the partner had a cybersecurity breach, which constrained shipping times and impacted sales. The region is also working through some “execution issues,” said Singh.

Read the full article here

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Articles

Lucid shares tumble following public offering of nearly 262.5 million shares

News October 17, 2024

Harris distances herself from Biden, bashes Trump in tense Fox News interview

News October 17, 2024

Alibaba’s international arm says its new AI translation tool beats Google and ChatGPT

News October 16, 2024

I bought a $54,000 abandoned house in Japan and turned it into a luxury Airbnb—take a look inside

News October 16, 2024

Trump’s crypto coin goes on sale with Election Day just three weeks out

News October 15, 2024

Cramer’s Lightning Round: Uranium Energy is ‘the real deal’

News October 15, 2024
Add A Comment

Leave A Reply Cancel Reply

Demo
Top News

6 Ways to Avoid Paying to Check Bags When Flying

May 28, 20250 Views

How Rookie Investors Are Beating Market Veterans in a Volatile Market

May 28, 20250 Views

7 Ways to Save Money Each Month That Therapists Call Emotional Labor

May 28, 20250 Views

How Financial Stability Can Improve Mental Well-Being

May 28, 20250 Views
Don't Miss

How Companies Can Develop Leaders Who Actually Deliver Results

By News RoomMay 28, 2025

Entrepreneur In 2024, U.S. companies witnessed an unprecedented wave of CEO departures, with 327 executives…

JPMorgan Is Opening ‘Affluent Banking’ Centers. Here’s Where.

May 28, 2025

Your Resume Might Be Great, But This Is What Makes People Say ‘Hire Them’

May 28, 2025

Starbucks Is Hiring a Pilot to Captain Its Company Aircraft

May 28, 2025
About Us
About Us

Your number 1 source for the latest finance, making money, saving money and budgeting. follow us now to get the news that matters to you.

We're accepting new partnerships right now.

Email Us: [email protected]

Our Picks

Should You Withdraw Your 401(k) Funds Before Retirement?

May 28, 2025

6 Ways to Avoid Paying to Check Bags When Flying

May 28, 2025

How Rookie Investors Are Beating Market Veterans in a Volatile Market

May 28, 2025
Most Popular

3 Ways To Get Paid To Advertise On Your Car

November 2, 20232 Views

AustralianSuper rejects Brookfield’s ‘best and final’ $10.5 billion bid for Origin Energy

November 2, 20231 Views

Should You Withdraw Your 401(k) Funds Before Retirement?

May 28, 20250 Views
Facebook Twitter Instagram Pinterest Dribbble
  • Privacy Policy
  • Terms of use
  • Press Release
  • Advertise
  • Contact
© 2025 Solutions For Real. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.