Cautious wholesale environment dints Levi’s in third quarter
09/10/2023
Direct to Consumer (CTC) net revenues increased 14% and revenues from e-commerce grew 19%.
However, wholesale revenues declined 8% as growth in Asia and Latin America was offset by declines in North America and Europe, reflecting the “cautious order environment” among wholesale partners.
Asia revenues increased 12%, reflecting growth across almost all markets, including strong growth in China.
Interest and other expenses totalled $38 million compared with $13 million in Q3 2022. The increase was primarily driven by a $19 million pension settlement loss and foreign currency transaction losses.
CEO Chip Bergh said: “We are focused on the levers within our control, and the actions we took in the third quarter are beginning to drive improvements in US wholesale trends.
“As we look longer term, we remain confident in our ability to achieve our goals given the global strength of the Levi’s brand, the momentum in our direct-to-consumer business globally and the exceptional growth potential of our product portfolio and our international business.”
Its Dockers brand increased revenues 9% while sales at Beyond Yoga rose 25%.
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