{"id":1966122,"date":"2023-07-06T20:14:01","date_gmt":"2023-07-07T00:14:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/levi-strauss-trims-profit-forecast-on-higher-costs-cautious-consumer\/"},"modified":"2023-07-06T20:15:03","modified_gmt":"2023-07-07T00:15:03","slug":"levi-strauss-trims-profit-forecast-on-higher-costs-cautious-consumer","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/levi-strauss-trims-profit-forecast-on-higher-costs-cautious-consumer\/","title":{"rendered":"Levi Strauss lowers profit outlook due to increased costs and wary consumers."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Flevi-strauss-trims-profit-forecast-on-higher-costs-cautious-consumer%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1966122&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"entry-content\">\n<p>By Granth Vanaik<\/p>\n<p>(Reuters) -Levi Strauss &#038; Co cut its annual profit forecast on Thursday, in a sign that higher costs were weighing on the maker of denim clothing\u2019s margins as it struggles with falling sales at its wholesale channel in North America.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\" style=\"min-width: 320px; min-height: 50px;  text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-1'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>Shares of the company fell about 6% in extended trading, as it joined peer American Eagle Outfitters on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/levi-strauss-trims-profit-forecast-on-higher-costs-cautious-consumer\/\" title=\"Levi Strauss lowers profit outlook due to increased costs and wary consumers.\">weak consumer spending outlook<\/a>. <\/p>\n<p>Customers are turning more cautious on spending on pricier discretionary items, including apparel, as the cost of living rises in the U.S. <\/p>\n<p>\u201cMacro effects of higher inflation in a slowing U.S. economy have put increased pressure on the price-sensitive consumer,\u201d <strong>Chief Executive Officer Chip Bergh<\/strong> said in a post-earnings call. <\/p>\n<p>Levi\u2019s now expects adjusted profit to be between $1.10 and $1.20 per share for 2023, compared to its prior forecast of $1.30 to $1.40.<\/p>\n<p>The annual reported net revenue is expected to increase 1.5% to 2.5% from a year earlier, the apparel maker said, narrowing its previous forecast range of 1.5% to 3%. <\/p>\n<p>Inventory backlog created supply chain challenges in Levi\u2019s U.S. distribution centers, resulting in its inability to fulfill demand, Bergh added. <\/p>\n<p>Revenue in the company\u2019s higher-margin direct-to-consumer channel increased 13% for the second quarter, while its wholesale channel, which includes sales to retailers like Target and Nordstrom, posted a 22% decline as wholesalers tightened their inventories in North America and Europe. <\/p>\n<p>Sales in Americas declined 22%, while that in Europe fell 2%.<\/p>\n<p>Decline in U.S. wholesale revenues is likely beginning of a trend for rest of 2023 that will induce Levi\u2019s to increase promotions and cut prices, thus crimping gross margins and slowing revenue growth, said Michael Ashley Schulman, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-plans-to-unveil-advisory-warning-for-americans-doing-business-with-deteriorating-hong-kong\/\" title=\"Biden Plans To Unveil \u2018Advisory\u2019 Warning For Americans Doing Business With \u2018Deteriorating\u2019 Hong Kong\">chief investment officer<\/a> at Running Point Capital Advisors.  <\/p>\n<p>The apparel maker, however, disclosed plans of making \u201cvery selective price reductions\u201d in its wholesale channel for lower-income consumers.<\/p>\n<p>It posted a net loss of $1.6 million for the quarter ended May 28, compared with a net income of $49.7 million a year earlier. <\/p>\n<p> (Reporting by Granth Vanaik in Bengaluru; Editing by Shweta Agarwal)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/levi-strauss-trims-profit\/attachment\/levi-strauss-co-store-at-the-woodbury-common-premium\/\"><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/levi-strauss-trims-profit\/attachment\/file-photo-jeans-trousers-are-displayed-at-a-levi-strauss\/\"><\/a><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>OAN\u2019s\u00a0Neil W. McCabe4:28 PM \u2013 Thursday, July 6, 2023 National Political Correspondent interviewed Zhonetta Brown, a senior litigator at the Washington-based New\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>National Political Correspondent Neil W. McCabe presents a deep dive into Louisiana federal Judge Terry Doughty\u2019s July 4th preliminary injunction against the Biden administration, naming more than 40 specific officials and more than 12 federal agencies, working to suppress free speech on social media.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>Ohio abortion rights groups have delivered\u00a0nearly 700 thousand signatures in an effort to get a pro-choice measure on the ballot in November. <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>pre-Vatican II Bishop Donald J. Sanborn, the rector of the Most Holy Trinity Seminary, Reading, Pennsylvania, about the Vatican targeted Bishop Joseph Strickland, a critic of Pope Francis\u2019 leadership of the Catholic Church.<\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Jody Godoy (Reuters) -Twitter has threatened to sue Meta Platforms over its new Threads platform in a letter sent to the\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By David Shepardson WASHINGTON (Reuters) -U.S. auto safety regulators said on Thursday they are seeking updated responses and current data for an\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>(Reuters) \u2013 Canadian energy firm Suncor Energy on Thursday said that due to a cyber security incident on June 21, unauthorized party\u2026 <\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p>By Aditya Soni (Reuters) -Meta\u2019s Threads racked up more than 30 million sign-ups within about 18 hours of its launch, emerging as\u2026 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Levi Strauss &amp; Co&#8217;s annual profit forecast was reduced due to increased costs, impacting the company&#8217;s margins. The decline in sales at its North American wholesale channel further added to the challenges. Consequently, the company&#8217;s shares dropped approximately 6% during extended trading.<\/p>\n","protected":false},"author":66,"featured_media":1966123,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-1966122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1966122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1966122"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1966122\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1966123"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1966122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1966122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1966122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}