Levi Strauss stock dropping on Q2 sales miss

Shares of Levi Strauss & Co. (LEVI) are under pressure in Thursday's trading session following the release of its fiscal second-quarter results. The denim manufacturer fell short of sales expectations, despite the implementation of a new direct-to-consumer strategy aimed at reducing operational costs.

The Morning Brief's Seana Smith and Brad Smith break down the details of the report.

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This post was written by Angel Smith

Video transcript

Shares of Levi's Strauss are sinking today after the company's sales have missed expectations in the second quarter.

The Jaker also saying it plans to cut back on cost by selling more directly to consumers, a strategy that they have now employed now for quite some time city saying though that the wholesale business continuing though to hold back the company despite some of that brand strength that we did see in the most recent quarter when it comes to re on a regional basis here, the America is remaining strong Europe seen as a bit more disappointing, came in below the streets consensus forecast here and we're gonna talk to the CFO and, and uh later on next hour here, Brad and I think that's a big focal point here for analysts, for investors.

Just some of the weakness that we are seeing, especially abroad.

Whether or not that is a trend that we're gonna continue to see here in the second half.

Yeah, I'm just smiling here.

When's the last time you heard of Dockers as uh innovation?

Well, you're gonna hear about that a little bit more from harmed Singh when you do speak with him as they discussed it on the call yesterday going forward leaning innovation with an expanded head to toe collection.

They just want Levi's head to toe for you, but it's Levi's.

But by a different name, performance based Dockers Go series, they're saying that's exceeded expectations since the launch beyond yoga too.

This is gonna be interesting to see how they lean into that up, 13% acceleration to Q One driven by strength and wholesale and ecommerce there.

Um, and of course, the, the space die business, I'm not as privy to that one.

I don't know, maybe that's something that, uh, some of our other producers have bought into at this juncture.

But one of the huge things here is just wider leg pants and dresses.

They're leaning into that.

I, I never thought that that would be another strategy that we'd see deployed here once again.

So what was, what was early two thousands is once new again?

And I'm still struggling to get on board with it.

Really?

I've got some, uh, I've got some wide leg but I got them from mawe though.

Yeah, I had to try it out.

Had to be like the, you know, on the, on trend people out there, but I'm gonna be listening close to you guys conversation with our me.