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Reuters, October 7 (Angela Christy M/Danielle Kaye) – Levi Strauss (LEVI.N) raised its annual profit forecast on Wednesday after benefiting from tariff rebates and betting on strong holiday demand for its premium jeans and sweaters. However, the company’s shares still fell 2% in after-hours trading as sales in the US and Europe came in below expectations. Further details: In the quarter ended August 30, Levi Strauss received a $79 million tariff rebate under the International Emergency Economic Powers Act, with plans to reinvest around $60 million of it this year into promotions and marketing activities. Comparable sales in its directly operated stores were flat in the third quarter. CEO Michelle Gass stated that the business underperformed due to declining US sales and “abnormally” warm weather in Europe, which suppressed store traffic. Gass noted that back-to-school marketing in the US focused too much on loose-fitting pants, overlooking the popularity of low-rise styles. Nevertheless, the women’s apparel line was a highlight, partly due to the expansion into tops, skirts, and dresses beyond denim pants. According to Gass, non-denim bottom products contributed about half of the company’s revenue growth this quarter. Gass added that as the jeans maker targets high-income consumers, the premium “Levi’s Blue Tab” line saw double-digit growth. Meanwhile, sales in Asia were boosted by a 13% increase in China and a new collaboration with singer Rosé. The company raised its full-year organic revenue growth forecast to 6%, reaching the upper end of its previous guidance of 5.5–6%. Full-year adjusted earnings per share guidance was also raised to $1.54–$1.56, up from the previous $1.46–$1.52. According to data compiled by London Stock Exchange Group (LSEG), net revenue for the quarter ended August 30 rose 4% to $1.61 billion, roughly in line with expectations of $1.62 billion. Adjusted earnings per share for the quarter were $0.48, surpassing analysts’ estimates of around $0.36. Independent retail adviser Bruce Winder commented that consumer-facing operations underperformed in the third quarter, adding that the US market continues to face challenges due to persistently high fuel prices. (For the convenience of non-English speakers, Reuters provides automated translations of its reports into several languages. Reuters does not guarantee the accuracy of automated translation and is not liable for any damage resulting from the use of translation functions. Automated translation is provided solely for convenience.)