Levi Strauss (LEVI), the century-old denim icon, delivered a strong third quarter that beat Wall Street’s expectations and even prompted management to lift its full-year outlook. Yet, despite the upbeat numbers, Levi Strauss shares fell more than 11% in morning trading.
The market’s reaction came on the heels of the stock’s stellar run in the recent past. Ahead of earnings, Levi’s shares had touched a new 52-week high of $24.82, climbing more than 64% over the past six months. Expectations were running high, and the stock’s pullback suggests that investors may have been looking for stronger forward guidance to justify further gains.
