Levi Strauss 2Q profit drops on IPO costs, revenue rises

SAN FRANCISCO (AP) — Levi Strauss & Co. shares slid in late trading Tuesday after the denim company posted worse than expected quarterly results.

The San Francisco company said it earned $28.2 million, or 7 cents per share, in the three months ended May 26. That compares with net income of $74.9 million, or 19 cents per share, a year earlier.

Earnings in the latest quarter were weighed down by costs related to the company’s initial public offering in March.

Revenue rose 5.4% to $1.31 billion in the period. Excluding the effect of currency, revenue was up 9%.

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On average, analysts surveyed by FactSet forecast quarterly earnings per share of 12 cents on revenue of $1.29 billion.

Looking ahead, Levi Strauss slightly raised expectations, saying it now expects fiscal 2019 revenue on a constant currency basis to grow at the high end of a mid-single digit range.

Levi Strauss shares dipped nearly more than 6% to $22.20 in extended trading.

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on LEVI at https://www.zacks.com/ap/LEVI

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