Levi Strauss & Co (LEVI.N) on Thursday topped Wall Street estimates for quarterly revenue, helped by steady demand for jeans and non-denim outfits such as chinos, tops and accessories despite persistently high inflation.
Even as a recession threat looms over the United States, demand for looser and baggier jeans as well as non-denim styles such as active leggings, dresses and footwear has remained resilient among Americans, benefiting companies like Levi’s that have offered discounts and promotions to get rid off excess stock in the inventory.
The company’s net revenue rose to $1.69 billion in the first quarter from $1.59 billion a year earlier. Analysts had expected revenue of $1.62 billion, according to Refinitiv data.
Shares of the San Francisco-based apparel maker fell about 3% in premarket trade as the company reported a 41.4% fall in quarterly profit.
Net income attributable to Levi fell to $114.7 million, or 29 cents per share, in the first quarter ended Feb. 26, from $195.8 million, or 48 cents per share, a year earlier.The company reaffirmed its forecast for 2023 revenue and profit.