Denim powerhouse Levi Stauss & Co (NYSE:LEVI) saw its overall revenue increase but reported a 4% drop in profits as the manufacturer delivered its fiscal third-quarter results on Tuesday evening.
The San Francisco-based company took a hit from its wholesale business throughout the Americas, a key revenue-generating market for the iconic brand.
Investors sent Levi’s stock down 2.4% to US$18.93.in premarket trading in New York on Wednesday morning.
READ: Levi Strauss shares pop after swinging to profit in first public quarter since March IPO
During the quarter, the company reported net revenue of US$1.45 billion, a slight increase from the US$1.39 billion during the same period a year prior.
Net income came in at US$124 million or US$0.30 per share, down 4% from the US$130 million or US$0.33 per share it posted during 3Q 2018.
The figures beat Wall Street expectations of US$0.28 per share and revenue of US$1.44 billion.
CEO Chip Bergh told shareholders that the company delivered strong third-quarter results and remains on-track to achieve its full-year expectations.
“Our strategies to diversify to faster-growing, high-opportunity, high gross margin businesses continue to drive momentum, as we again grew revenues double-digits internationally, in our direct-to-consumer business, and in the women’s and tops categories,” Bergh said in a statement.
Bergh said that the company expects “strong performance” in the fourth quarter in international, direct-to-consumer, women's and tops, and improved comparisons for US wholesale.
“We'll stay focused on what we can control as we grow this business over the long-term.”
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