Clothing retailer Levi Strauss & Co. (LEVI) has reported mixed financial results for this year’s third quarter.
The company known for its blue jeans and other denim products posted earnings per share (EPS) of $0.48 U.S., which topped the $0.36 U.S. expected on Wall Street.
However, revenue of $1.61 billion U.S. fell just short of the $1.62 billion U.S. that had been expected among analysts. Sales were up 4% from a year earlier.
Levi said direct-to-consumer revenues increased 2% in the quarter, but comparable sales were flat.
Management at Levi Strauss raised their profit outlook, saying they expect the company to benefit from tariff refunds received from the U.S. government.
The company increased its earnings expectation for the full year to between $1.54 U.S. and $1.56 U.S., up from a previous range of $1.46 U.S. to $1.52 U.S.
Wall Street was expecting earnings of $1.52 U.S. to $1.59 U.S. from the retailer.
Levi Strauss lowered its revenue growth guidance for this year to 7%, the bottom end of its previous range of 7% to 7.5%.
Management said they continue to experience soft sales in the U.S. market, where revenue decreased 1% in the latest quarter.
Levi’s operating margin rose to 13.8% for the third quarter, up from10.8% in the same quarter of last year, boosted by tariff refunds that contributed 4.9% to margins.
The company also said that tariff refunds contributed a $0.16 U.S. boost to its earnings in the latest quarter.
LEVI stock has decreased 21% over the past 12 months to trade at $19.51 U.S. per share.
