(Reuters) -Levi Strauss fell short of market expectations for second-quarter revenue on Wednesday and maintained its annual earnings forecast, taking its shares down 11% in extended trading.
Apparel makers such as Levi and peer Ralph Lauren (NYSE:) have worked to prioritize higher margin products and increase penetration through their direct-to-consumer channels. An inventory glut last year had caused several quarters of weakness in wholesale demand.
Earlier this year, Levi said it would cut about 10% to 15% of its global corporate workforce and discontinue its Denizen business to instead focus on higher-margin brands.
The company reported second-quarter adjusted profit per share of 16 cents, beating expectations of 11 cents, as per LSEG data.
The denim clothes maker maintained its forecast for fiscal 2024 revenue growth of 1% to 3% for the second time this year. Analysts on average expected growth of 2.79%.
It also maintained its forecast for annual adjusted profit of $1.17 to $1.27 per share, compared with market expectations of $1.27 per share.
Second-quarter net revenue of $1.44 billion fell shy of estimates of $1.45 billion.
