Levi Strauss Shares Down Nearly 11% In After Hours Despite Q3 Profit Surge, Reaffirms Profit Outlook

(RTTNews) - Shares of clothing company, Levi Strauss & Co. (LEVI) were down nearly 11 percent despite a surge in company's third-quarter net profit, which was reported on Wednesday.

LEVI was down by 10.92 percent at $18.76 in after hours on the New York Stock Exchange.

For the three-month period to August 25, the company posted a net profit of $20.7 million or $0.05 per share, higher than $9.6 million or $0.02 per share, recorded for the same period last year.

Excluding items, earnings stood at $131.9 million or $0.33 per share, higher than prior year's $112 million or $0.28 per share.

Revenue for the quarter was $1.516 billion, compared with $1.511 billion a year ago.

The clothing firm's third-quarter results were driven by the Levi's brand, which grew 5 percent globally, a significant acceleration from the first-half and the highest revenue growth in two years.

Looking ahead, Harmit Singh, Chief Financial and Growth Officer of Levi Strauss, said, "Based on the continued strength of the Levi's brand, we expect sequential progression to continue into Q4 as we accelerate revenue and profitability. We are also taking decisive actions to address the areas where we've underperformed, including our decision to evaluate strategic alternatives for Dockers."

Levi Strauss has reaffirmed its annual earnings guidance, while revising down its annual revenue growth outlook.

For the full year, the company still expects its adjusted earnings per share to be at the mid-point of the previously guided range of $1.17 - $1.27 per share. Meanwhile, Levi Strauss now expects annual revenue to grow around 1 percent compared to its earlier expected revenue growth of 1 percent - 3 percent.

On average, 12 analysts, polled by Thomson Reuters are expecting the firm to earn $1.25 per share, on revenue of $6.32 billion, for the year.