Levi's CFO says fundamentals are strong despite guidance cut

Levi Strauss & Co. (LEVI) stock is tumbling after the company cut its full-year outlook. Levi Strauss & Co. Chief Financial and Growth Officer Harmit Singh joins Seana Smith and Brad Smith alongside Yahoo Finance Editor-in-Chief Brian Sozzi at Catalysts to discuss the company's quarterly results and what they say about the health of consumer spending.

Singh tells Yahoo Finance: “Although we are at the lower end of our range in terms of sales, we believe the underlying fundamentals of our business are getting stronger and profitability is improving.” He highlights the growth of the Levi's brand, particularly in that The women's segment is gaining market share while maintaining leadership in the men's business, but notes that there were weaknesses in the China and Mexico regions as well as underperformance of the Dockers brand.

The CFO says: “We feel really good about the consumer, despite the macro headwinds and uncertainty.” He explains: “Levi's has seen a recovery globally. The denim category is having a moment globally…The uncertainty revolves around the port strike, which we hope doesn't last too long, the war in the Middle East, and (and) the fact that…low-end consumers are probably something tighter and more resilient overall, but we are seeing brands and consumers respond to really good innovation and product pipelines.”

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This post was written by Naomi Buchanan.