Levi Strauss & Coa big name in the global apparel industry, saw a decrease in its net revenues in the second quarter of 2023. The company reported net revenues of $1.3 billion, marking a 9% decrease from the same quarter of the previous year.
At the operating margin level, Levi Strauss & Co recorded a significant decline from 5.2% in Q2 2022 to 0.7% in Q2 2023. This decline of 450 basis points represents a sizeable decrease in operating profitability.
In terms of net income, the company reported a net loss of $2 million, in contrast to net income of $50 million in the second quarter of 2022. In terms of adjusted net income, the company reported a value of $15 million, significantly lower than $117 million in the second quarter of 2022. Adjusted EPS fell to $0.04, compared to $0.29 in the same period a year prior.
Finally, Levi Strauss & Co has revised downwards its outlook for the fiscal year. The company now expects net revenue growth of 1.5% to 2.5%, up from its previous forecast of 1.5% to 3%. In addition, adjusted EPS for the fiscal year is now expected to be in the $1.10-$1.20 range, versus the previous forecast of $1.30-$1.40.