Levi Strauss & Co ( LEVI ) shares are trading lower Friday. The company reported third quarter financial results after the market closed on Thursday.

What To Know: The denim retailer posted adjusted earnings of 34 cents per share, topping analyst estimates of 31 cents. Revenue reached $1.54 billion, exceeding the consensus forecast of $1.50 billion and rising from $1.44 billion a year earlier.

Despite the earnings and revenue beats, shares continue to slip Friday, suggesting investors may have expected a stronger performance after the company's standout second quarter.

Direct-to-consumer net revenues rose 11% year-over-year on a reported basis and 9% organically, driven by growth across regions, up 7% in the U.S., 4% in Europe and 14% in Asia. E-commerce sales jumped 18% on a reported basis and 16% organically, while wholesale revenue climbed 3%. DTC accounted for 46% of total revenue in the quarter.

"We delivered another very strong quarter as our pivot to becoming a DTC-first, head-to-toe denim lifestyle retailer is driving a meaningful inflection in our financial performance," said Michelle Gass, CEO of Levi Strauss. "With strength across channels, segments and categories, we are raising our full-year outlook and are well-positioned for the holiday season."

FY25 Outlook: The company raised its adjusted earnings per share guidance from between $1.25 and $1.30 to between $1.27 and $1.32. Furthermore, it raised its sales guidance from between $6.41 billion and $6.48 billion to between $6.59 billion, versus the consensus estimate of $6.16 billion.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

Morgan Stanley analyst Alex Straton maintained an Equal-Weight rating on Levi and raised the price target from $19 to $20.

JP Morgan analyst Matthew Boss maintained an Overweight rating on Levi and raised the price target from $23 to $33.

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LEVI Price Action: At the time of publication, Levi shares are trading 11.02% lower at $21.83, according to data from Benzinga Pro.

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