Levi Follows Nike's Footsteps But Even With Everlasting Jeans, Business Model Success Doesn't Happen Overnight
Portfolio Pulse from Upwallstreet
Levi Strauss & Co (LEVI) narrowly beat Wall Street estimates but slashed its full year guidance due to a drop in wholesale revenues and weakened U.S. sales. Wholesale customers such as Macy’s Inc (M) and Kohl’s Corporation (KSS) now contribute less than 30% to Levi's total business. Levi's Q2 sales dropped 9% YoY to $1.34 billion, with a net loss of $1.6 million. The company is focusing on direct-to-consumer channels, which resulted in a 13% rise in DTC revenues. Levi's also plans to reduce prices on some items at its wholesale partnership stores.
July 07, 2023 | 1:44 pm
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Kohl’s Corporation is one of Levi's wholesale customers, contributing less than 30% to Levi's total business. The company is facing challenges including retail theft and curbed discretionary spending.
Kohl’s Corporation is facing challenges including retail theft and curbed discretionary spending, which could negatively impact its stock price.
CONFIDENCE 100
IMPORTANCE 50
RELEVANCE 50
NEGATIVE IMPACT
Levi's Q2 sales dropped 9% YoY to $1.34 billion, with a net loss of $1.6 million. The company slashed its full year guidance due to a drop in wholesale revenues and weakened U.S. sales.
Levi's reported a drop in Q2 sales and a net loss, which is likely to negatively impact its stock price. The company also slashed its full year guidance, indicating that it expects further challenges ahead.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
Macy’s Inc is one of Levi's wholesale customers, contributing less than 30% to Levi's total business. The company is facing challenges including retail theft and curbed discretionary spending.
Macy’s Inc is facing challenges including retail theft and curbed discretionary spending, which could negatively impact its stock price.
CONFIDENCE 100
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Macy’s is facing off against Amazon.com Inc with Black Friday sales months before the holiday season to boost its competitiveness.
Macy’s is trying to boost its competitiveness by introducing Black Friday sales months before the holiday season, in a bid to compete with Amazon.com Inc. It's unclear how this will impact Amazon's stock price.
CONFIDENCE 100
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Levi's is focusing on direct-to-consumer channels, similar to Nike's strategy, which resulted in a 13% rise in DTC revenues.
Levi's is adopting a similar strategy to Nike by focusing on direct-to-consumer channels. This has resulted in a rise in DTC revenues, but it's unclear how this will impact Nike's stock price.
CONFIDENCE 100
IMPORTANCE 50
RELEVANCE 50