Levi Strauss & Co. reported disappointing third-quarter earnings as wholesale demand remained weak and an impairment charge impacted its results. In the three months ended August 27, the San Francisco-based denim company recorded a profit of $9.6 million, or 2 cents per share, compared to $172.9 million, or 43 cents per share, in the same period last year. This fell below analysts’ expectations of 26 cents per share, according to FactSet.
Adjusting for certain one-time items, Levi’s reported adjusted earnings of 28 cents per share, slightly surpassing the forecasted 27 cents per share from analysts. Despite this, revenue remained relatively unchanged from the previous year at $1.51 billion, missing analysts’ projected $1.54 billion.
While Levi’s direct-to-consumer segment experienced a 14% increase in revenue, reflecting significant recent investments, wholesale revenue declined by 8%. The company attributed its lower profits for the quarter partially to a $90.2 million impairment related to its acquisition of the Beyond Yoga brand.
Levi Strauss & Co. continues to face challenges in the current market landscape but remains committed to adapting and pursuing growth opportunities.