The stock of Levi Strauss (LEVI) is down 15% after the denim retailer missed Wall Street targets for its quarterly sales figure.
The company, which is widely credited with inventing blue jeans back in 1853, reported earnings per share (EPS) of $0.16 U.S. versus $0.11 U.S. that was expected among analysts.
Revenue in what was the company’s fiscal second-quarter totaled $1.44 billion U.S. compared to $1.45 billion U.S. that was anticipated. Sales rose 8% from a year earlier.
The narrow sales miss was disappointing coming as it does when denim jeans, jackets, dresses and skirts are making a comeback with consumers and trending on social media.
The company blamed the sales miss on unfavorable foreign exchange rates and weak sales at its Docker’s clothing unit.
In a bright spot, Levi’s direct-to-consumer sales increased 8% during the quarter, representing 47% of overall sales. Online sales increased 19%, said the company in its earnings release.
On a call with analysts and media, management reaffirmed their previous full-year guidance, which continues to be in line with Wall Street estimates.
Levi’s expects full-year earnings of $1.17 U.S. to $1.27 U.S. per share
Along with its quarterly print, the company also announced that it is raising its quarterly dividend by 8% to $0.13 U.S. per share, its first increase in six quarters.
Before today (June 27), Levi’s stock had gained 58% over the last 12 months to trade at $23.12 U.S. per share.