Levi Strauss has cut its full-year profit forecast. Reasons include softening demand, a strengthening dollar and higher costs. The rapidly strengthening dollar and higher product costs also caused Levi's to post adjusted gross margin of 56 per cent, down 60 basis points, compared with a year earlier.

The jeans maker, who has been battling supply chain disruptions since the pandemic began, now further strained due to the Russia-Ukraine war, has been raising prices of its denims to battle rising costs.The company now expects full-year reported net revenue growth of 6.7 per cent to seven per cent, representing 11.5 per cent to 12 per cent net revenue growth on a constant-currency basis.Earlier, the company forecast a net revenue growth of 11 per cent to 13 per cent.The company owns brands like Dockers and Denizen.

Consumers in the US are shifting their focus away from higher-priced products and clothes to essentials due to decades-high inflation, affecting Levi’s and other apparel makers. People are getting concerned about where their dollars are going. The company is more cautious about its business in Europe as the consumer in the region is impacted by much higher inflation as well as steeper energy costs.