Levi Strauss & Co. (LEVI) faced concerned investors on the back of its first quarter earnings report, with elevated inventory still being a struggle for the retailer. Levi Strauss & Co. CFO & Chief Growth Officer Harmit Singh joined Yahoo Finance Live to discuss what's to come for the company.
"Our wholesale customers are tightening their 'open-to-buy' budget, however they have a lot of time and a lot of space for brands that work," he says.
"Consumers who are in the U.S. who are earning less than $50,000; they're pressured," he adds, but reiterates that this category is a "small piece" of the retailer's business.
"We went into the year thinking that it would be a tale of two halves; the first half being weaker...and the second half a lot stronger," he explains. "People are generally being cautious and that's reflective in our wholesale business," he adds.
We'll get a pulse check on the consumer later this week, with March retail sales on tap Friday.
You can watch Brad Smith, Julie Hyman and Brian Sozzi's full interview with Harmit Singh here.
Key Video Moments:
00:00:14 - Customers tightening budget
00:01:15 - Tale of two halves
00:02:04 - People are being more cautious
