Levi Strauss & Co. shares remain optimistic on Wall Street despite the company lowering its annual forecast. In the third quarter, Levi’s revised its outlook for the year, expecting a 1% increase in net revenue, instead of the previously projected 1-3%. However, Wall Street analysts are not concerned, seeing positive prospects for the brand’s future.

One of the key factors is Levi’s decision to sell the Dockers brand, which had previously negatively impacted profits. The company is now focusing on its core denim product and expanding its Beyond Yoga business. The company’s new CEO, Michelle Gass, is actively promoting the strategy of expanding direct-to-consumer (DTC) sales and the brand’s international presence.

“We believe the market underestimates Levi’s ability to transform into a global, multichannel lifestyle brand for both men and women,” said UBS analyst Jay Sole, commenting on the successful development of the company’s strategy.