Why Levi Strauss Stock Is Sinking After Hours

Levi Strauss & Co LEVI shares are trading lower in Thursday's after-hours session after the company reported third-quarter earnings. Here's a look at the details.

What To Know: Levi Strauss reported quarterly earnings of 28 cents per share which beat the analyst consensus estimate of 27 cents, a 30% decrease over earnings of 40 cents per share from the same period last year. The company reported quarterly sales of $1.51 billion which missed the analyst consensus estimate of $1.54 billion, a 0.40% decrease over sales of $1.52 billion the same period last year.

Cash and cash equivalents were $295 million, while total liquidity was approximately $1.1 billion.

The company anticipates fiscal 2023 adjusted diluted EPS to be on the low-end of the previously guided range of $1.10 to $1.20, versus the $1.12 estimate. Reported net revenues are expected to be flat to up 1% year-over-year.

"In the third quarter, we delivered double-digit growth in our direct-to-consumer business, driven by strong comp-store gains, which helped offset continued softness in the wholesale channel, primarily in the U.S.," said Chip Bergh, president and CEO of Levi Strauss & Co.

"We are focused on the levers within our control and the actions we took in the third quarter are beginning to drive improvements in US wholesale trends. As we look longer term, we remain confident in our ability to achieve our goals given the global strength of the Levi's brand, the momentum in our direct-to-consumer business globally, and the exceptional growth potential of our product portfolio and our international business."

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LEVI Price Action: Shares of LEVI were down 3.10% at $12.80 in the after-hours session at the time of publication, according to Benzinga Pro.

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