Levi Strauss forecast annual profit well below analysts’ estimates after topping fourth-quarter revenue on Wednesday, sending its shares down 5% in extended trade.

The company projected annual adjusted profit per share of $1.20 to $1.25, compared with expectations of $1.37, according to data compiled by LSEG.

Levi has trimmed its portfolio and focused on full-price sales of popular items such as denim dresses and baggy jeans, but faced muted consumer spending in the U.S. as well as in global markets such as China.

The company reported revenue of $1.84 billion for the three months ended Dec. 1, compared with analysts’ average estimate of $1.73 billion, according to data compiled by LSEG.

Levi had been cautious in its expectations for the holiday quarter as consumers in the United States concentrated their spending on big deal events, and retailers worked to keep their inventories in check.