PepsiCo Cuts Profit Outlook as Levi Strauss D2C Growth Slows

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3▲0 ▼2Impact / 5
Summary · why it matters

PepsiCo lowered its profit outlook as its North American recovery takes longer than expected, sending shares lower. The company is facing higher costs in North America that are weighing on margins, and it plans to raise some prices in the coming months after cutting prices on some marquee brands earlier this year. Microsoft shares moved on news that its Xbox unit is formalizing its film and TV foray with a new division called XP to expand its franchises into other media. Levi Strauss fell after posting the slowest growth in its direct-to-consumer channels since late 2022, partly due to a marketing misstep, and it expects direct-to-consumer growth for the current quarter to rise by a mid-single digit after shifting its marketing to focus on low-rise jeans.

Impact on assets 3

Consumer Discretionary▼
Levi Strauss & Co Class A
LEVI
▼ NegativeDemandrelevance

Levi Strauss posted its slowest direct-to-consumer growth since late 2022, partly due to a marketing misstep.

Consumer Staples▼
PepsiCo Inc
PEP
▼ NegativeCapitalrelevance

PepsiCo plans to raise some prices in the coming months after earlier cutting prices on marquee brands.

Artificial Intelligence▲
Microsoft Corporation
MSFT
± MixedTechnologyrelevance

Microsoft's Xbox unit is formalizing a film and TV division called XP to expand franchises into other media.