Adjusting its full-year revenue expectations to the lower end of its previous forecast, Levi Strauss & Co has raised concerns about stagnating demand for its apparel. The company has lowered its expectations for net revenue growth for the current fiscal to 1 per cent as against the earlier estimate of 1 per cent to 3 per cent.

In Q3 FY25 that ended on Aug 25, the company’s sales fell slightly below analysts’ expectations. Notably, revenues for the Americas division of Levi’s experienced a decline. The 

Levi’s has been focusing on increasing sales through its own channels, including its stores, website, and app, as shoppers shift away from department stores, which have traditionally been key for large apparel brands. While Levi's direct-to-consumer efforts showed progress with 10 per cent growth, its wholesale business declined by 6 per cent compared to the same quarter last year.

The company is also reviewing strategic options for its Dockers brand, which could include a potential sale. Sales of the brand fell by 15 per cent during the latest quarter, generating $73.7 million in revenue. Levi’s has hired Bank of America as a financial adviser for this process.

Despite these challenges, the company’s namesake brand is gaining momentum, emphasised Michelle Gass, CEO emphasised highlighting the strength of its direct-to-consumer segment.