Levi Strauss is set to open 100 stores in 2020, as the denim giant is seeing strong gains on the international front and in e-commerce. The brand posted a 3 per cent gain in net revenue in the first quarter of the fiscal year. The company expects its net revenue to grow by 6 per cent in fiscal 2020 This estimate incorporates anticipated benefits of a Black Friday week in the first quarter, and a 53rd week, which will fall in the fourth quarter and will include a second Black Friday.
During the fiscal, Levi’s adjusted earnings before interest and taxes (EBIT) margin expansion is expected in the range of 30 to 40 basis points, reflecting gross margin expansion partially offset by an increase in adjusted sales, general and advertising (SG&A) expense as a percentage of revenues. Its adjusted diluted earnings per share (EPS) are forecast in the range of $1.18 to $1.22.
Capital expenditures are expected to be approximately $200 million to $210 million, with nearly 100 new company-operated store openings on a gross basis in 2020, in addition to 80 stores from the company’s acquisition in South America.