For the fourth quarter Levi Strauss’s revenue fell by six percent.

Despite the revenue decline, both sales and adjusted profit topped Wall Street expectations. The Levi’s brand grew eleven percent in 2022, and expanded its global market share more than any other denim brand for the second year in a row, led by share gains in both men’s and women’s.

The brand’s merchandise saw average selling prices rise by six percent in 2022.Globally, Levi Strauss anticipates opening more than 80 net new company-operated stores in the full year. In the fourth quarter, the company opened the first two brick-and-mortar stores for Beyond Yoga, the activewear brand it acquired in 2021.

During the fourth quarter, inventory delays and supply chain disruptions prevented the company from fulfilling select US wholesale customer orders. Total inventories increased 58 percent over the prior year. The increase relative to the third quarter was in line with the company’s expectations.

Core product represents more than two-thirds of total inventories. Levi’s expects the fourth quarter inventory growth will be the high point, and anticipates bringing inventory back to normal levels by the end of the second quarter. To do so, the company is planning to reduce inventory buys by 25 percent through the period.