Levi shares tumble as profitability slips on costs of promotions

Shares in Levi slumped 15% in New York trade at one stage, erasing all gains for the shares since the start of the year. 

Shares in Levi Strauss fell the most for three years after first-quarter gross margin fell short of expectations due to increased promotions across the business.

The retailer reported gross margin of almost 56% in the three months to the end of February, below the margin of around 59% reported a year ago and less than the average estimate of analysts.