Earnings Results: Levi Strauss cuts annual earnings and sales forecast as economic fears grow, stock falls nearly 5%

by | Oct 6, 2022 | Stock Market

Levi Strauss & Co. executives on Thursday reduced their expectations for the year as a stronger dollar and weaker economy contributed to a miss on quarterly revenue. The jeans-maker reported third-quarter net income of $172.9 million, or 43 cents a share, on sales of $1.52 billion, up from $1.5 billion in the year-earlier quarter. After adjusting for restructuring, impairment and other charges, Levi Strauss
LEVI,
-3.92%,
which also owns Dockers, earned 40 cents a share, compared with 48 cents a share in the prior-year period.

Analysts polled by FactSet expected the company to earn 37 cents a share on revenue of $1.6 billion. Shares fell between 4.5% and 5% in after-hours trading following the announcement, after closing with a 3.9% decline at $15.93. After missing analysts’ estimates on sales, executives reduced their annual forecast for both revenue and earnings. In Thursday’s announcement, they said the reduction was “a result of the significant incremental currency headwinds from the stronger U.S. dollar, as well as a more cautious outlook for North America and Europe due to macroeconomic conditions and ongoing supply chain disruptions.” Executives now expect annual adjusted earnings of $1.44 to $1.49 a share, after previously stating $1.50 to $1.56 a share; and 2022 net revenue of roughly $6.15 billion to $6.17 billio …

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