Levi Strauss (NYSE:LEVI) reported a slight miss in its Q2 revenue, resulting in a more than 16% drop in the company’s shares intra-day today.
Despite the revenue shortfall, Levi Strauss exceeded earnings expectations and announced an 8% increase in its dividend to 13 cents per share.
For the quarter, the company posted an EPS of 16 cents, surpassing the expected 11 cents. However, revenue came in at $1.44 billion, slightly below the anticipated $1.45 billion. Year-over-year sales increased by approximately 8%. This growth is partially attributed to a shift in wholesale shipments from Q2 to Q1 in the previous year, providing an easier comparison.
Levi’s CFO, Harmit Singh, attributed the revenue miss to unfavorable foreign exchange conditions and sluggish sales at Docker’s, the company’s khaki and chinos brand.
The company reiterated its full-year guidance, which is in line with Street estimates. The company continues to project full-year EPS between $1.17 and $1.27.