Levi Strauss & Co. Lowers Annual Guidance

Investing.com — Levi Strauss & Co. announced on Wednesday that it has cut its annual guidance after falling short of Q3 revenue estimates. The denim apparel maker is considering options for its underperforming Dockers brand, including a potential sale.

Levi Strauss & Co. Class A (NYSE:LEVI) shares dropped over 8% in after-hours trading following the announcement.

In fiscal Q3, the company reported adjusted earnings of $0.33 per diluted share on revenue of $1.52 billion, whereas Wall Street had forecasted $0.31 per share on revenue of $1.55 billion.

Dockers experienced a revenue decline of 15% in Q3 compared to the previous year. The company has initiated a formal review of strategic alternatives for Dockers, including a potential sale.

Looking to the future, Levi Strauss is now projecting revenue to grow by 1%, down from the previous forecast of 1% to 3%. It also anticipates adjusted diluted EPS of $1.22, which is the midpoint of the earlier forecast range of $1.17 to $1.27, and slightly below estimates of $1.25.