Shares of Levi Strauss & Co.
LEVI,
fell after hours Thursday after the jeans maker tempered its full-year outlook, as U.S. retailers take a more conservative approach to restocking their shelves with new clothing. Executives said they expected full-year adjusted per-share profit to be “on the low end” of a prior forecast of between $1.10 and $1.20 a share. They also said they expected sales to be flat to up 1%, compared with expectations given in July for gains of 1.5% to 2.5%. Shares were down 3.4% after hours. The company reported third-quarter net income of $9.6 million, or 2 cents a share, compared with $172.9 million, or 43 cents a share, in the same quarter last year. Revenue slipped to $1.51 billion from $1.52 billion in the same quarter a year earlier. Adjusted for impairments, goodwill and other items, Levi Strauss earned 28 cents a share. Analysts polled by FactSet expected adjusted earnings per share of 27 cents on $1.54 billion in sales. Chief Executive Chip Bergh noted “continued softness in the wholesale channel, primarily in the U.S.”
Read the full article here