Levi Strauss shares down about 5% after Q2 results

Levi Strauss & Co. (LEVI) reported second-quarter results that exceeded Wall Street expectations, with adjusted earnings per share of $0.28 compared to $0.24 expected, and revenue of $1.56 billion, surpassing the $1.52 billion forecast. Despite these strong results, the company's shares fell more than 5% in extended trading.

The denim maker raised its full-year adjusted earnings per share guidance to a range of $1.46 to $1.52, up from the previous range of $1.42 to $1.48. Additionally, Levi Strauss increased its sales growth forecast to between 7% and 7.5%, compared to the earlier range of 5.5% to 6.5%. CFO Harmit Singh noted that half the anticipated sales growth would come from higher prices and the other half from unit sales.

CEO Michelle Gass highlighted the resilience of the core consumer, noting that two-thirds of the quarter's sales growth came from unit sales rather than price increases. The company also announced a 14% increase in its quarterly dividend to $0.16 per share.