Levi Strauss & Co cut its annual forecasts for the second time on Thursday after missing third-quarter sales estimates, reeling from hefty promotions and falling demand at wholesale channels in North America.

As high prices and borrowing rates squeeze budgets, Macy’s and Nordstrom are suffering lower demand for Levi’s denim bottoms, tops, and cargo pants.

During the late summer and fall, unseasonably warm weather also hurt sales, especially for men’s jeans in wholesale channels where Levi’s has less control over product displays, according to Harmit Singh, Chief Financial and Growth Officer.

“In our own stores, we have a lot more buy-now, wear-now products like shorts, lighter denim, skirts and dresses,” Singh told Reuters.

The Levi’s wholesale business has experienced declining sales in recent years, particularly in North America, where middle-class consumers are more prevalent.

According to Singh, “value-conscious” shoppers with incomes between $50,000 and $100,000 are particularly vulnerable. As a result, Levi’s Signature and Denizen lines are priced just below $30 at retail partners like Walmart and Target.

Its direct-to-consumer (DTC) business, which serves affluent consumers, grew 12%, even as Levi’s Americas segment’s revenue decreased 5%.

Michael Ashley Schulman, a partner at Running Point Capital, said the brand is trying to sell more directly to consumers, but overall will probably face headwinds during the holiday season.

To boost sales among more price-sensitive customers, the company also cut prices on certain denim bottoms sold to wholesale retailers like Macy’s and Nordstrom.

During the third quarter, Levi’s adjusted gross margins decreased 130 basis points to 55.6%, also hurt by lower full-price sales and higher product costs.