Levi Strauss & Coexpects holiday-quarter net revenue growth of 21 per cent from a year earlier, while analysts were expecting growth of 22 per cent.
Levi also expects fourth-quarter earnings per share to be between 38 cents and 40 cents per share, compared with analysts average expectation of 40 cents per share.
Boosted by an uptick in demand for jeans from people refreshing their wardrobes as they returned to normal social life following easing pandemic restrictions, the company beat third-quarter revenue and profit estimates,
Net revenue for the company rose to $1.50 billion from $1.06 billion in the third quarter ended August 29. Analysts on average had expected $1.48 billion, according to IBES data from Refinitiv.
The company’s shares rose by 2 per cent in extended trading after its board approved a $200 million share repurchase plan. The company has a market capitalization of $49.49 billion, according to Refinitiv data.
Levi also benefited from a reopening of the economy in its European markets and investments in its direct-to-consumer business.
Analysts expect Levi to face less supply pressure than peers due to its minimal reliance on Vietnam, an apparel manufacturing hub that has seen several factories close due to COVID-19 outbreaks and lower usage of the congested West Coast port.