June 27 Reuters Levi Strauss shares tumbled nearly 16 on Thursday after weakness in the denim maker39;s U.S. wholesale business led to downbeat secondquarter revenue.

The company39;s wholesale revenue fell by a midsingle digit percentage in the United States, while sales at its directtoconsumer DTC unit jumped 12 in the quarter ended May 26.

It was a good quarter but expectations were high with category tailwinds expected to drive strong results, said Citi Research analyst Paul Lejuez, adding that the wholesale business is still holding the company back.

Levi Strauss has been grappling with choppy demand in its wholesale business as retailers have remained cautious about restocking against the backdrop of consumers being careful with their spending.

Consequently, gains from Levi39;s more profitable DTC business, which has focused on bringing in trendier styles and selling products at full prices, fell short of boosting overall revenue in the quarter.

Company executives also blamed weak performance of its Dockers brand, known for its chinos and khakis, for hurting Levi39;s top line.

TD Cowen analyst Oliver Chen said in a note that weakness in shares likely stems from a combination of elevated expectations heading into the results and the secondquarter profit beat not flowing through to the fullyear outlook.

Levi Strauss39; median pricetoearnings multiple for the next 12 months, a common benchmark for valuing stocks, is 16.8, above the industry median of 14.2,…