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Levi Strauss & Co. (LEVI) exceeded Wall Street expectations for fourth quarter revenue on Wednesday, showing record gross margins and revenues to have increased by 12%. The clothing company issued a cautious full-year forecast due to macroeconomic factors.
Levi Strauss chief financial officer and growth officer Harmit Singh joins Morning Brief to highlight the company’s strong holiday performance and growth in women’s denim as well as direct-to-consumer sales. Looking ahead, Singh projects 3.5 to 4.5% organic growth, partially impacted by a shorter fiscal year and business exits.
Additionally, Singh discusses external risks, noting the effects of foreign exchange fluctuations on international earnings: “With the dollar becoming stronger... post-November, that impacts our top line by about 250 basis points.”
Regarding tariffs being proposed by the Trump administration, he downplays their impact: “Our direct imports into us from China are less than one percent and for Mexico are about five [percent]. So the impact is marginal.” Despite these challenges, the company remains confident in its future. “Levi’s is where we are leading the market," Singh states.
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This post was written by Josh Lynch