Oct 7 (Reuters) - Levi Strauss raised its annual profit forecast on Wednesday, after benefiting from tariff refunds, as it bets on strong holiday demand for its premium denim.
Here are more details:
• The apparel brand received $79 million in refunds during the third quarter ended August 30 for tariffs paid under the International Emergency Economic Powers Act and plans to redeploy about $60 million this year on promotions and marketing
• However, comparable sales for its direct-to-consumer business
were flat in the third quarter. CEO Michelle Gass said the business fell short of expectations with sales falling in the US as shoppers contended with higher inflation
• Still, the jeans maker's women's line has emerged as a bright spot, driven by demand for baggy jeans and a push beyond denim into tops, skirts and dresses
• Levi's raised its outlook for annual organic revenue growth to 6%, the upper end of its previous forecast of 5.5% to 6%
• The company's shares have fallen about 5% so far this year
• Net revenue for the quarter ended August 30 rose 4% to $1.61 billion, largely in line with estimates of $1.62 billion, according to data compiled by LSEG
• It earned 48 cents per share on an adjusted basis in the quarter, compared with analysts' estimate of about 36 cents per share
(Reporting by Angela Christy in Bengaluru and Danielle Kaye in New York; Editing by Diti Pujara)
