04:54 PM EDT, 10/02/2024 (MT Newswires) -- Levi Strauss' (LEVI) fiscal third-quarter earnings rose more than expected while its revenue trailed Wall Street's estimates as the denim maker said late Wednesday that it was exploring strategic alternatives for the Dockers brand.

Adjusted earnings per share rose to $0.33 during the three months to Aug. 25 from $0.28 the year before, topping the consensus on Capital IQ for $0.31. Revenue was narrowly higher at $1.52 billion, shy of analysts' $1.55 billion estimate.

The direct-to-consumer channel's sales were 10% higher, reflecting gains in the US and Europe. Wholesale net revenue decreased 6%, Levi Strauss said. The Levi's brand revenue rose 5% globally, while Dockers, known for its chinos and khakis, declined 15%.

Levi Strauss said its formal review of Dockers could include a potential sale or other transaction.

"The company has not set a deadline or definitive timetable for the completion of the strategic alternatives review process, and there can be no assurance that this process will result in any transaction or particular outcome," Levi Strauss said.

Shares were down about 8% in after-hours trading.

Levi Strauss now expects its fiscal 2024 revenue to rise by 1% year-over-year, compared with 1% to 3% growth previously projected. The consensus on Capital IQ is for revenue of $6.32 billion. The company expects adjusted EPS to be at the mid-point of the prior $1.17 to $1.27 range. The Street is looking at $1.25.

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