Levi Reports Strong Q4 Earnings but Warns of Weaker Sales Outlook for the Year

Levi Strauss reported better-than-expected earnings and revenue for its fiscal fourth quarter but issued weaker guidance for the current year. The denim maker expects a sales decline, falling short of growth projections from analysts. CEO Michelle Gass attributed the decline to currency trends, a shorter fiscal year, and divested businesses rather than weakening demand. Gass has focused on cutting unprofitable segments, increasing higher-margin sales, and attracting more female customers. Under her leadership, Levi secured a major marketing deal with Beyoncé after she referenced the brand in a song.