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- Levi Strauss & Co. on Tuesday announced second quarter results below expectations, but higher than revenue.
- The retailer's shares slid by more than 6% in the trading of spare parts.
- The company said the cost of its March IPO weighed on its results.
- Watch Levi's transactions live on Markets Insider.
The profits of Levi Strauss & Co. have been affected by its costly public listing.
Shares of Levi Strauss & Co lost more than 6% after the close of trading on Tuesday, when the company announced its second quarter results. The results did not meet analysts' expectations for earnings per share, but beat earnings. The company attributed the $ 29 million decrease in revenue associated with its initial public offering in March, as well as higher advertising costs.
Here's what the company said about the expectations of analysts surveyed by Bloomberg:
Adjusted earnings per share: $ 0.07 reported versus $ 0.12 (expected)
Returned: $ 1.3 billion reported versus $ 1.29 billion (expected)
The company returned to the public market after three decades of absence. When he filed with the SEC in February, he announced his intention to switch jeans to other categories such as shoes and outerwear. He also said that he thought he had "a long track of growth for our head and women categories," according to the record.
In the second quarter and first half of the year, "Levi's brand has grown in all three regions – men, women, ups and downs, and has remained at the center of the culture thanks to iconic products and to the consumer experience "Levi CEOs in a press release.
Net revenues increased in all regions – 3% in the Americas, 9% in Europe and 6% in Asia. The company also increased its commercial revenues directly to consumers by 9% by adding 78 stores and strengthening its e-commerce.
The company has not adjusted its annual forecast for the 2019 fiscal year. It expects a net sales growth of around 5% and a slightly higher adjusted EBIT margin. Levi's also noted that because the calendar of his fiscal year ends on the last Sunday of November 2019, there will be no Black Friday. This is a problem because the day usually increases net income by half a point.
Levi's shares rose 3.5% until Tuesday's close.
Insider Markets
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