Levi Strauss has lowered its annual profit outlook, revealing a plunge in wholesale revenues and US soft sales.
The fashion retailer‘s predicts its adjusted profit to be between $1.10 and $1.20 (£0.90) per share for this year, compared to its previous prediction of $1.30 (£1.00) to $1.40 (£1.10).
Net sales fell 9% for Q2 ended 28 May, making it the biggest quarterly decline since Q1 2021, Refinitiv data reports.
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The jeans company’s chief executive Chip Bergh explained it had plans to lower the price of roughly six items sold across wholesale channels in efforts to win back shoppers.
“While US wholesale remains pressured, we are pursuing initiatives to stabilise this business and drive market share gains. We are confident in our ability to navigate near-term headwinds and remain as optimistic as ever about the company’s future,” he said.
Levi’s net sales for the year are predicted to rise 1.5% to 2.5% from the year before.
Meanwhile, direct-to-consumer sales were up 13% for Q2, while its wholesale revenues dropped 22%. Sales in the Americas dropped by 22%, while sales in Europe fell by 2%.
The news comes after Michelle Gass was named the new president and CEO of Levi’s, following Bergh spending 13 years in the role.
Gass joined the office in January, and will continue reporting to Bergh before succeeding him in May 2024.
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