Levi Strauss sales fell, but still topped Wall Street's expectations. The company also offered positive revenue guidance.
Direct to consumer sales declined 2% after Levi closed nearly all of its shops in Russia, a major market for the denim retailer, Levi CEO and President Chip Bergh told CNBC. Still, Levi's direct channels saw a strong Christmas season and sales increased 10% in November and December compared to the prior year, the company said.
Digital sales were also down 7% year-over-year, which the company attributed to a return to stores and a cooldown on online shopping. The retailer has hired a new chief digital officer to improve the online shopping experience and boost sales. The new chief previously oversaw digital operations for Nordstrom.com and NordstromRack.com.
Europe will remain a strong focus for Levi in the coming fiscal quarter, Bergh said. The retailer plans to open about 100 new stores across Europe, between 70 and 80 on a net basis. For fiscal 2023, the blue jeans mainstay expects revenues between $6.3 billion and $6.4 billion, translating to growth of 1.5% to 3% year-over-year, as long as inflation and pandemic-related headwinds don't get any worse. The company expects adjusted earnings per share of $1.30 to $1.40. Wall Street is estimating $6.27 billion in sales and $1.35 earnings per share.
Levi's chief financial officer, Harmit Singh, will also be the company's chief growth officer, effective immediately, Bergh announced in a news release. He'll be focusing on expanding the company's growth into direct-to-consumer, women's apparel and its other brands, Beyond Yoga and Dockers, among other initiatives.
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