Levi’s made 33 cents per share in the third quarter, beating expectations of 31 cents|Mike Mozart|CC BY 2.0
Levi Strauss is planning to sell its underperforming Dockers brand, known for chinos and khakis, the denim maker announced Wednesday. The brand has also revised its full-year expectations and now anticipates sales to grow 1% compared to previous projections of up to 3%.
The move comes as Levi’s aims to focus more on its core denim products and Beyond Yoga activewear brand.
Reasons behind dropping Dockers
Sales at the khaki brand dropped 15% in the third quarter, contributing just 5% to Levi’s total revenue of $1.52 billion. Analysts had projected $1.55 billion in revenue. A year earlier, the denim giant’s sales were at $5.51 billion.
However, Levi’s brand saw a 5% sales growth.
Its direct-to-consumer segment grew by 10%, driven by strong demand for women’s denim dresses and jumpsuits. Overall, D2C sales comprised 44% of the company’s total revenue. The company also reported its margin grew 4.4%.
Levi’s Q3 earnings per share were 33 cents, exceeding analysts’ expectations of 31 cents.
Looking ahead, Levi’s forecasts mid-single-digit Q4 revenue growth, lower than the 7.36% estimate, citing slowing consumer spending in China.
Seeing rising demand for women’s apparel, the brand recently teamed up with Beyonce for a new campaign.