Levi Strauss & (US:LEVI)2026-01-28 21:21Revenue Growth and Strategy - The company aims to increase its direct-to-consumer revenue portion, focusing on brand-dedicated stores and digital presence, with expectations for annual net revenue growth and improved gross and Adjusted EBIT margins[14]. - The company is focused on operational excellence and cost savings through a global productivity initiative[14]. Shareholder Returns - The company is committed to enhancing total shareholder returns through capital allocation priorities, including share repurchases and dividends[14]. Economic and Market Risks - The uncertain macroeconomic environment, including global inflationary pressures and potential economic slowdowns, may adversely impact financial results[14]. - The company faces risks from extreme weather conditions, public health crises, and the financial health of its customers, which could negatively impact operating results[22]. - The company acknowledges the competitive nature of the global apparel industry, which subjects it to cost and pricing pressures[23]. Foreign Currency Exposure - The company is exposed to foreign currency fluctuations due to its global operations, which may affect cash flows and financial performance[379]. - The company has forward foreign exchange contracts totaling $573.6 million to buy and $428.5 million to sell various foreign currencies, expiring through February 2027[382]. - As of December 1, 2024, the company had forward foreign exchange contracts to buy $756.1 million and to sell $618.4 million against various foreign currencies, expiring through February 2026[383]. - The average forward exchange rate for the Euro is 1.15, with a notional amount of $142.0 million, reflecting a decrease of 5.6%[387]. - The average forward exchange rate for the British Pound Sterling is 1.33, with a notional amount of $1.6 million, showing no change[387]. - The average forward exchange rate for the Japanese Yen is 142.79, with a notional amount of $30.6 million, indicating an increase of 2.0%[387]. - The average forward exchange rate for the Australian Dollar is 0.65, with a notional amount of $(43.2) million, reflecting a decrease of 0.1%[387]. - The company reported a total fair value of $145.2 million for its financial instruments as of November 30, 2025, down by 6.6%[387]. Debt and Financial Instruments - As of November 30, 2025, the total principal amount of the company's debt instruments is $1,050.8 million, with an average interest rate of 3.50% for fixed-rate US dollar debt[389]. - The company has a fixed-rate debt of €475 million with an average interest rate of 4.00%, maturing in 2026[389]. - The average interest rate for fixed-rate Euro debt is 4.00%, with a principal amount of €475 million maturing in 2026[389]. - The company’s fixed-rate debt in US dollars amounts to $500.0 million, with an average interest rate of 3.50%[389]. - The company has no short-term borrowings as of November 30, 2025[389].