Key Takeaways
- Shares of Levi Strauss tumbled in early trading Thursday after the jeans maker announced it may sell its Dockers brand as it delivered mixed third-quarter results.
- While Levi’s adjusted earnings per share of 33 cents beat consensus Wall Street estimates, its revenue of $1.52 billion came up short.
- Sales of Dockers were down 15% year-over-year, prompting executives to “evaluate strategic alternatives” for the unit.
Shares of Levi Strauss (LEVI) plunged in early trading Thursday after the jeans maker announced it may sell its Dockers brand as it delivered mixed third-quarter results.
While Levi’s adjusted earnings per share (EPS) of 33 cents beat consensus estimates of analysts polled by Visible Alpha, its revenue of $1.52 billion came up short. Sales of Dockers were down 15% year-over-year, prompting executives to “evaluate strategic alternatives” for the unit.
Net income in the third quarter of $21 million was well below the over $100 million analysts had forecast.
Levi’s Adjusts Revenue Outlook
For the full fiscal year, Levi’s said it expects total revenue to grow 1% compared to fiscal 2023, a more modest projection than the 1% to 3% growth it forecast when it reported its second quarter results.
Levi’s also said it has “initiated a formal review of strategic alternatives for the Dockers brand,” which could lead to the famous khaki brand being sold, though the review wasn’t given a specific timeline.
The company’s shares were down 8% in recent trading. The stock has gained 18% since the start of the year.