Western consumer spending is under pressure, and Levi Strauss' (LEVI.US) $10 billion target may be delayed
1min read Media reports on Tuesday suggested that Levi Strauss & Co. (LEVI.US) would delay its goal of achieving $9 billion to $10 billion in revenue by 2027, as rising living costs and high interest rates have taken a heavy toll on Western consumers, despite the denim leader expanding its store count. The company originally set the ambitious target in 2022.
Levi Strauss operates more than 1,200 physical stores in 38 countries worldwide, and as of November 26, 2023, reported net revenue of approximately $6.2 billion, which was flat year-on-year.
Michelle Gess, the company's CEO, told media that the company would "do more homework" before providing investors with a more precise timeline for its revenue target. Levi Strauss did not immediately respond to requests for comment.
A company executive said in June that the retailer was on track to open 100 new physical stores globally in 2024.
Hamit Singh, the company's finance and growth head, said in an interview that the revenue growth target was likely to be "delayed for a few years."
He told media that while the company's target U.S. consumers (with annual incomes of over $100,000) were "in a better place" than earlier in the year, cost-conscious shoppers were still facing pressure on their spending.
Media reports suggested that CEO Gess planned to attract more female shoppers by selling more dresses and shorts, saying that women currently made up only a third of its total customer base.