Levi Strauss shares fall on slower sales outlook

Levi Strauss & Co shares fell 6 percent in extended trading after reporting that sales growth would slow in the second half of the year due to weakness in its wholesale business.

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The company reported that net income attributable to the company fell to $28.2 million, or 7 cents per share, from $74.9 million, or 19 cents per share, a year earlier.

The company pointed to costs related to its initial public offering earlier this year.

Ticker Security Last Change %Chg
LEVI LEVI STRAUSS & CO. 23.66 +0.47 +2.03%

Excluding items, it earned 17 cents per share, beating expectations of 13 cents, while net revenue rose 5 percent to $1.30 billion, edging past expectations.

The company forecast full-year net revenue growth at the high end of the mid-single-digit range after posting revenue growth of 6 percent in the first half of the year.

“Our second quarter and first half results reflect the continued strength of our diversified business model as we delivered broad-based growth across all brands, regions and key product categories despite a challenging retail and macroeconomic environment,” said Chip Bergh, president and chief executive officer of Levi Strauss & Co. “For both periods, the Levi’s brand grew in all three regions across men’s, women’s, tops and bottoms and maintained its position at the center of culture through iconic products and consumer experiences.”

The company has been investing in its online business and retail outlets, while boosting its exposure in markets such as China, India and Brazil.

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The company’s women’s business grew 16 percent. The music festival Coachella also helped drive demand for its cut-off shorts, the company said.

Shares have risen nearly 40% since the company’s IPO in March.

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