Levi Strauss & Co. In the center presented its economic results. Its CEO Chip Bergh said the tight days are still good. The slim days will never go away, Berg emphasized during the company’s fourth-quarter results presentation.
According to him, half of Levis’ sales last quarter came from loose and skinny styles, but the two best-selling men’s days were the 311 and 721 models. The days have decided not to go anywhere for the foreseeable future, Berg confirmed to the Journal.
And so editor Leavis cut short the harmless debate about whether the good old days were still in their tracks. An article in Quartz magazine and many others in the past year claimed that the trend is ringing its bell forever. Their downfall has been attributed to Generation Z, who now prioritize free styles.
So some analysts predicted a decrease in the demand for denim, especially among young women. However, Levis reported better-than-expected revenue, which suggests those concerns may be misplaced.
diversification nm hv
Revenue in the fourth fiscal quarter, which ended November 27, was $1.59 billion (that’s 36 billion K), which was more than the $1.57 billion median estimate of analysts contacted by Bloomberg. Earnings per share were more than 34 cents, excluding some line items, equaling analyst estimates.
The days category in the US has been weak overall in the last six months or so, Berg said, but it’s basically a double-digit growth correction from the first six months of the year 2022. And we’re not just day to day life! One thousand percent of our income comes from non-everyday products. F. Levis added that diversifying our business will help us fuel growth in denim
Retail revenue, which makes up 40 percent of the business and includes sales in Levi’s stores and on the company’s website, fell 2 percent in the fourth quarter, while wholesale revenue fell 8 percent. However, Berg noted that the Levis Denizen and Signature brands that are sold in the United States by Target Corp. and Walmart Inc. and Amazon.com Inc. , posted a gain of tens of percent in the quarter.
The company’s gross profit margin was 55.8 percent, down from 57.8 percent a year ago and lower than analysts had expected. In recent quarters, many retailers have cut transportation costs, so no matter how many promotional events the company has planned to tie excess inventory into, it’s built up a good year.
For fiscal year 2023, revenue is expected to be between US$6.3 and 6.4 billion (142 billion K), representing growth of 1.5 and 3 percent over the previous year.
Goodbye, high pass!
While skinny days are still in vogue, the company has seen a one-way riding shift. In terms of denim, Berg said, demand has shifted to denim in recent months, unlike before. That’s why the popularity of super high days has been on the rise over the past five years.
Days are running out, Berg said. We’re not flattered in the hip area, but the mid-rise stitch is the worst part. I think we’ll also see a shift in strokes from waist high to middle strokes and back to side strokes, Berg concluded.
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