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Levi Strauss said its revenue rose more than forecast ahead of the holiday season, even as it weathered supply chain troubles that wiped out the gains from Black Friday sales.

The shift to casual wear has fueled demand for Levi’s jeans, including newer styles with a baggier fit, as consumers work from home during the pandemic.

The San Francisco-based company also grew last quarter as more shoppers returned to stores. It reported net sales of company-run stores up 28% year-over-year.

Overall, net sales rose 22% to $1.7 billion in the three months to the end of November, beating analysts’ forecasts of $1.68 billion and the company’s own outlook that sales sales will increase by 21%.

Levi said its revenue fell $50 million from supply chain constraints during the quarter. That offset a 3% increase from Black Friday sales and the company’s acquisition of the Beyond Yoga brand.

Harmit Singh, chief financial officer, said staffing challenges as well as supply chain bottlenecks prevented Levi from meeting all of the demand for its products. Sales were not affected much by the price increase, he said.

“Demand is outpacing supply,” Singh said, adding that Levi has maintained pricing power during a time of rising cost inflation driven by wages, merchandise and store rents.

Levi predicts that net sales will improve by 11 to 13% in fiscal 2022 to $6.4 billion to $6.5 billion, higher than analysts’ forecast of $6.37 billion. dollars. It expected adjusted earnings of $1.50 to $1.56 per share, compared with Wall Street estimates of $1.53.

Shares rose 1.9% in after-hours trading on Wednesday.

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