Shares of Levi Strauss (NYSE: LEVI) got the blues after the denim maker reported third-quarter earnings last week. Although it beat analyst expectations, it still showed lower profits and a deteriorating U.S. wholesale business.
Direct-to-consumer sales remain a bright spot, however, as currency-adjusted revenue rose 12% year over year. And in a strategy designed to go with that momentum, Levi Strauss remains committed to opening 100 new stores this year. Yet it's operating in a retail environment that is seeing thousands of stores close, meaning it may be risky for the jeans company to bet it can swim against the tide.
Image source: Levi Strauss.