Levi Strauss Forecasts Lower-Than-Expected Annual Profit
Levi Strauss & Co. (LEVI) announced an annual profit forecast that fell short of analysts' estimates despite outperforming revenue targets in the fourth quarter. Shares dropped by 5% in after-hours trading.
Earnings Outlook
The apparel company projects adjusted annual earnings per share of $1.20 to $1.25. This range is below analyst expectations of $1.37, as per LSEG data.
Market Dynamics
Levi has focused on streamlining its product line and emphasizing full-price sales of popular items. However, consumer spending has been subdued in both the U.S. and markets like China.
Fourth-Quarter Results
Revenue for the quarter ended December 1 reached $1.84 billion, surpassing analysts' average estimate of $1.73 billion (LSEG data). Levi had anticipated a cautious holiday season as consumers prioritized major sale events and retailers sought to control inventory.