Levi Strauss & Co. increased its annual sales forecast on Wednesday, anticipating continued strong demand for its jeans and casual apparel despite ongoing economic uncertainty that has constrained overall consumer spending.

The company reported second-quarter revenue of $1.56 billion, an 8% increase from the previous year and above analysts’ expectations of $1.52 billion. Net profit rose 30% to $87.3 million, reflecting improved operational efficiency and solid market performance.

Despite the positive financial results and the raised guidance, Levi Strauss’ shares declined about 5% in extended trading. The drop came after the stock had gained roughly 18% year to date, indicating some investor disappointment with the updated outlook.

The company’s confidence in its product categories contrasts with broader consumer behavior trends, as many sectors face cautious spending amid economic volatility. Levi Strauss appears to be relying on the enduring appeal of its core offerings to navigate these challenges.

The updated forecast signals Levi Strauss’ expectation that the market for casual wear will remain resilient, even as inflationary pressures and global uncertainties persist. The company did not provide specific details on its revised sales targets but emphasized ongoing investments in marketing and product innovation to sustain growth.