Sep 24, 2024 12:01 PM IST
Levi Strauss may delay its $9-10 billion revenue target. Despite plans for 100 new stores in 2024, net revenues remained steady at $6.2 billion.
Levi Strauss’ target of hitting $9 billion to $10 billion in revenue by 2027 would be pushed back as rising costs of living hits Western consumers, even as the company expands store openings, the Financial Times reported on Tuesday.
The denim maker had first set those goals in 2022.
Levi Strauss, which owns over 1,200 company-operated stores across 38 countries, reported net revenues of $6.2 billion in the year ended November 26, 2023 – almost the same as the year earlier.
CEO Michelle Gass told FT that the company will “do our homework again” before giving investors a more precise timeline on its revenue goals.
Levi Strauss did not did not immediately respond to a Reuters request for comment.
In June, a company executive had said that the retailer was on track to open 100 net new stores in 2024 globally.
The company’s finance and growth chief Harmit Singh told the Financial Times its topline goals would most likely “be pushed out a couple of years.”
While the company’s target US consumers – those earning more than $100,000 annually — were “in a better place” than earlier this year, more cost-conscious shoppers continued to be under pressure, he told the newspaper.
CEO Gass plans to win more female shoppers – who account for a third of its total customers- by selling more dresses and skirts, FT said.