Levi's announced last night that it had posted better-than-expected results for the second consecutive quarter, but lower-than-expected sales sent its share price tumbling on Thursday in New York.

The jeans manufacturer posted earnings per share (EPS) of $0.16 for its second fiscal quarter, which ended in May, compared with $0.04 a year earlier and a consensus target of only $0.11. Gross margin rose by 1.8 percentage points to 60.5%, while free cash flow from operating activities stood at 60.5%.

Gross margin rose by 1.8 percentage points to 60.5%, while free cash flow from operating activities was $262.8 billion, enabling the company to increase its dividend for the first time in a year and a half.

The coupon paid by the San Francisco-based group will increase by 8% to $0.13.

The main disappointment was that quarterly sales - up 8% to $1.40 billion - missed the market consensus of $1.45 billion.

In another disappointment, the company confirmed that it was targeting a 1% to 3% increase in net sales for the current fiscal year, a timid forecast for a group expected to accelerate its growth over the next few years.

Following this publication, Levi's shares fell by around 15% on Thursday morning in early trading on Wall Street.

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