Levi Strauss: shares fall despite earnings beat

(CercleFinance.com) - Blue-jeans maker Levi Strauss & Co.
posted better-than-expected quarterly profits and revenues late on Tuesday, driven by strong demand, but its shares fell nearly 11 per cent on Wednesday morning.

The San Francisco-based company said second quarter net profit fell to 29 million dollars, from 77 million dollars one year ago, primarily due to the 29 million dollars of costs associated with the company's initial public offering (IPO) in March.

However, net revenues grew five per cent to 1.3 billion dollars on a reported basis, up nine per cent on a constant-currency basis.

Levi's said it has delivered "broad-based growth" across all its brands, regions and product categories, despite a "challenging" retail and macroeconomic environment.

The Levi's brand in particular grew in all three regions across men's, women's, tops and bottoms, the fashion group said.

For its full fiscal year 2019, the company said it expects constant-currency net revenues growth at the high end of the mid-single digit range.

The report failed to lift investors' spirits, though, with the shares falling 10.8 percent to 21.1 dollars in New York this morning.

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