Levi Strauss has lowered its full-year profit and revenue outlook against a backdrop of a stronger dollar and ongoing supply chain disruptions.
Net revenue for the third quarter ended August 28 came in at 1.5 billion dollars, a 1 percent increase from a year earlier, or a 7 percent increase on a constant-currency basis.
The increase was driven by growth in the company’s direct-to-consumer business as well as increases across the US, Asia, and Latin America markets.
On a constant-currency basis, revenue at the Levi's brand was up 6 percent and at Dockers was up 13 percent.
Net income for the third quarter dropped to 173 million dollars from 193 million dollars the prior year.
“Despite a more challenging environment, we delivered solid third quarter results,” president and CEO Chip Bergh said in a statement. “The Levi's brand grew 6 percent in constant-currency, hitting a 10- year record third quarter sales result.”
Levi Strauss lowers FY guidance
However, Bergh warned that an uncertain macroeconomic backdrop is expected to remain “unpredictable” over the next few quarters.
Looking ahead at the full year, Levi Strauss has lowered its profit outlook in light of “significant incremental currency headwinds from the stronger US dollar” combined with “a more cautious outlook for North America and Europe due to macroeconomic conditions and ongoing supply chain disruptions”.
The company now expects revenue growth of between 6.7 percent to 7 percent, compared to previous guidance of between 11 percent and 13 percent.
Meanwhile, it expects adjusted diluted earnings per share of between 1.50 dollars and 1.56 dollars, versus previous guidance of between 1.44 dollars and 1.49 dollars.