Shares of Levi Strauss (LEVI) fell early Friday after the jeans maker adjusted its forecast for the year. The company now expects revenue to grow between 1.5% and 2.5%, a downgrade compared to the previous projection of up to 3% growth. Additionally, earnings per share (EPS) are expected to be in the range of $1.10 and $1.20, down from the earlier estimate of $1.30 to $1.40.
The news caused Levi Strauss shares to decline by 7.8% in premarket trading, reaching $13.12. Year-to-date, the stock has dropped by 8.3%.
Despite managing to slightly surpass analysts’ estimates for the quarter ending May 28, with EPS at 4 cents instead of the predicted 3 cents, Levi Strauss has been facing obstacles such as faster inflation, weak economic growth, and supply-chain issues.
“We are actively implementing strategies to stabilize our business and gain market share,” affirmed Chip Bergh, CEO of Levi’s. “We have confidence in our ability to navigate through the current challenges and remain optimistic about the future.”
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