Levi Strauss & Co. (LEVI) has released its third-quarter earnings report, which slightly exceeded Wall Street’s expectations. However, the company’s stock experienced a decline after it lowered its financial forecasts.
Q3 Earnings and Sales
Levi’s reported adjusted earnings per share of 28 cents, surpassing analyst projections of 27 cents per share. Nonetheless, the company’s sales of $1.51 billion fell slightly short of the consensus forecast of $1.54 billion, as reported by analysts tracked by FactSet.
Given the ongoing uncertainty in the macro environment, the company is adopting a cautious approach to its outlook for the fourth quarter. Harmit Singh, the chief financial officer of Levi’s, stated, “While we saw sequential improvement in the business across the company as we moved through Q3 with both July and August up versus prior year…we are taking a cautious approach to our outlook for the fourth quarter.”
Lowered Revenue-Growth Projections
Levi’s has slightly adjusted its revenue-growth projections for the full year. The company now expects revenue to remain flat or grow by 1% compared to the previous year. This is below previous forecasts of growth between 1.5% and 2.5%, as well as falling short of street expectations of 1.5% growth. Additionally, adjusted earnings per share will fall at the lower end of the previously issued forecast range of $1.10 to $1.20.
Following the release of the earnings report, Levi’s stock experienced a decline. In after-hour trading, shares fell by 2.4% to $12.87. Year-to-date, the stock has observed a decrease of 15%.