Levi Strauss’ shares tumbled pre-market Wednesday, following the company's warning of a weakening growth of sales in the second half of the year.
The maker of the iconic denim brand reported fiscal second quarter earnings of 7 cents a share, down -65% from the same period last year. Adjusting for some costs, the company earned 17 cents per share, beating the Street consensus estimate of 15 cents per share.
Revenue of $1.312 billion for the quarter also surpassed analysts’ forecasts.
However, Levis CFO Harmit Singh mentioned that the second half sales growth would “moderate relative to the first half, particularly in the United States" .The company expects that the lack of a Black Friday in Q4 will hurt revenue by roughly 100 basis points in the second half.
As for the ongoing trade war, CFO Singh has indicated that the company is prepared to cushion the effect of tariffs over the near term.