Dem Houston DA slams ‘broken system’ at border for letting in migrants suspected of killing Jocelyn NungarayLevi Strauss’ shares tumbled more than 15% on Thursday after weakness in the denim maker’s wholesale business led to downbeat second-quarter revenue.— the San Francisco-based company said wholesale revenue fell by a mid-single digit percentage in the quarter ended May 26.
“Our transformational pivot to operating as a DTC-first company is yielding positive results around the world, giving me great confidence that we will achieve accelerated, profitable growth for the rest of the year and beyond,” CEO Michelle Gass said in a statement. The shift reduced sales by about $100 million. Sales would have increased by only 1% in its most recent quarter without the shift, CNBC reported.Levi’s shift to selling directly has some benefits, like higher profits and less reliance on wholesalers. But wholesalers often bear the brunt of certain costs, like returned products.Finance chief Harmit Singh told CNBC the lackluster sales were due to weak numbers at khaki-brand Docker’s and negative foreign exchange conditions.