FX.co ★ Levi Strauss Shares Down Nearly 11% In After Hours Despite Q3 Profit Surge, Reaffirms Profit Outlook

Levi Strauss & Co. (LEVI) shares fell nearly 11% despite a strong performance in the company's third-quarter net earnings, disclosed on Wednesday. After-hours trading saw LEVI shares drop by 10.92% to $18.76 on the New York Stock Exchange.

During the three months ending August 25, Levi Strauss reported a net profit of $20.7 million, or $0.05 per share, a marked improvement from the $9.6 million, or $0.02 per share, recorded in the same quarter last year. When excluding certain items, the company achieved earnings of $131.9 million, or $0.33 per share, surpassing the prior year's figure of $112 million, or $0.28 per share.

For the quarter, revenue rose slightly to $1.516 billion, compared with $1.511 billion from the previous year. The robust third-quarter results were fueled by the Levi's brand, experiencing a 5% global growth, its fastest in two years and a notable increase from the first half.

Looking ahead, Harmit Singh, Chief Financial and Growth Officer of Levi Strauss, remarked, "Given the sustained strength of the Levi's brand, we anticipate continued improvement into the fourth quarter as we boost revenue and profitability. Additionally, we are making strategic evaluations, such as reconsidering strategic alternatives for Dockers, to address areas where we have underperformed."

Levi Strauss has confirmed its annual earnings forecast but has revised its annual revenue growth expectations downward. The company maintains its full-year adjusted earnings per share prediction at the midpoint of the previously projected range of $1.17 to $1.27 per share. However, Levi Strauss now foresees annual revenue growth of approximately 1%, down from the initially anticipated range of 1% to 3%.

According to a consensus of 12 analysts polled by Thomson Reuters, the expectation is for the company to earn $1.25 per share, with total revenue forecasted at $6.32 billion for the year.