Group 1 - Wall Street analysts expect Levi Strauss (LEVI) to report quarterly earnings of $0.31 per share, reflecting a year-over-year decline of 6.1% [1] - Revenues for the upcoming quarter are anticipated to be $1.5 billion, which is a decrease of 1.1% compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments during this period [1] Group 2 - Analysts estimate 'Geographic Revenues- Americas' to be $793.94 million, representing a year-over-year increase of 4.9% [4] - 'Geographic Revenues- Europe' is projected to reach $424.63 million, indicating a year-over-year growth of 4.4% [4] - 'Geographic Revenues- Asia' is expected to be $248.00 million, showing a slight year-over-year change of 0.4% [4] Group 3 - Levi Strauss shares have increased by 10% over the past month, outperforming the Zacks S&P 500 composite, which rose by 4.3% [4] - The company holds a Zacks Rank 2 (Buy), suggesting it is expected to outperform the overall market in the near term [4]

Economic Indicators and Government Shutdown - The federal government shutdown is likely to delay the release of several economic indicators, including U.S. trade deficit data, weekly initial jobless claims, and wholesale inventories [1][3] - Despite the shutdown, the Federal Reserve is expected to continue its schedule, including the release of meeting minutes and participation from key officials [3][4] Corporate Earnings Reports - Key corporate earnings reports are anticipated from major companies such as Constellation Brands, PepsiCo, Delta Air Lines, and Levi Strauss, which could provide insights into the state of the American consumer [5][6][7] - Constellation Brands is expected to report declining sales due to concerns over tariffs and weak demand, while PepsiCo may face challenges from its Frito-Lay division and North American sales [6] - Delta Air Lines has reinstated its outlook and reported better-than-expected results, while Levi Strauss grew revenue in the prior quarter despite tariff pressures [7] Upcoming Events and Consumer Sentiment - Amazon is set to hold its Prime Big Deal Days sales event on October 7-8, which may impact consumer spending trends [7] - The University of Michigan's consumer sentiment report and the Fed's consumer credit report are also expected to be released, providing further insights into consumer behavior [4]

Market Overview - The stock market opened higher on Friday, with Wall Street remaining unfazed by the ongoing U.S. government shutdown [2] - The Nasdaq Composite and S&P 500 reached new intraday record highs despite the shutdown entering its second day [2] - The prediction market Kalshi indicates a 69% chance that the shutdown will last more than 10 days [2] Economic Reports - Investors are closely monitoring upcoming economic reports, although the reliability of government data is in question due to the shutdown [3] - Key reports expected next week include the CB Employment Trends Index, Exports, Imports, Trade Balance, Atlanta Fed GDP, and Consumer Credit [3] - Additional reports on FOMC Minutes, MBA Mortgage Applications, Construction Spending, Gasoline Production, Jobless Claims, and Wholesale Inventories are also anticipated [3] Earnings Reports - Several companies are scheduled to report earnings next week, including Constellation Brands, PepsiCo, Delta Air Lines, Levi Strauss, Tilray, and Unity Bancorp [4] - Specific earnings spotlight dates include Constellation Brands and Aehr Test Systems on October 6, and McCormick & Co on October 7 [5]

Core Insights - Levi Strauss & Co. (LS&Co.) has partnered with Schneider Electric to enhance access to renewable electricity in its supply chain, starting in India [1] - The initiative aims to align renewable electricity supply with the demand from suppliers seeking to reduce emissions and improve resilience [1][2] Sustainability Goals - LS&Co. targets a 42% reduction in supply chain emissions by 2030 from a 2022 baseline, as part of its long-term goal to achieve net-zero greenhouse gas emissions by 2050 [3] - The program is designed to support suppliers in their sustainability strategies while fulfilling LS&Co.'s own emissions reduction targets [3] LEAP Program Details - The LEAP initiative will provide suppliers with competitive pricing, terms, and return on investment for renewable energy procurement [4] - The program includes training modules, financial analysis, and access to Schneider Electric's advisory services for textile and apparel manufacturing suppliers in India [5] Expansion Plans - Initially, LEAP will focus on textile and apparel manufacturing suppliers in India, with plans to expand to other business partners and regions in the future [6] - Suppliers participating in LEAP can explore various renewable energy purchasing options, including on-site solar and power purchase agreements (PPAs) [6] Industry Support - India's Ministry of New and Renewable Energy has expressed support for LS&Co.'s initiative, highlighting the benefits of accessible renewable energy opportunities for businesses [7] - Schneider Electric emphasizes the importance of transitioning to renewable energy across global supply chains to achieve significant climate impact [7]

Needham started off coverage on Levi Strauss & Co. (NYSE:LEVI) with a Buy rating on its view that it is a compelling momentum story. Analyst Tom Nikic and his team believe the apparel giant is executing well on its ...

Core Insights - Levi Strauss & Co. (LS&Co.) aims to achieve net-zero greenhouse gas emissions by 2050 through the launch of the LS&Co. Energy Accelerator Program (LEAP) to enhance access to renewable electricity in its supply chain, starting in India [1][5] Group 1: Program Details - LEAP is developed in partnership with Schneider Electric, focusing on energy management and automation [2] - The program will provide manufacturing suppliers in India with competitive pricing, terms, and return on investment for renewable energy procurement [3] - Suppliers participating in LEAP can explore options for on-site solar installations or join multi-buyer cohorts for power purchase agreements (PPAs) [4] Group 2: Strategic Importance - The initiative is positioned to increase awareness and technical capacity among Indian suppliers regarding renewable electricity [5] - The program aligns with India's goals for a greener future, showcasing how global brands can empower their supply chains to adopt renewable energy [5]

Sustainability Commitment - Levi Strauss & Co. (LS&Co.) is enhancing its sustainability efforts through targeted actions in key impact areas, as outlined in its 2024 Sustainability Goals and Metrics Report [1] - The report highlights progress in waste reduction, circularity, responsible cotton sourcing, and chemical management [1] Waste Management - LS&Co. is pursuing TRUE Zero Waste certifications for its company-operated facilities, with the Henderson, Nevada distribution center achieving TRUE Silver certification and a 95.2% waste diversion rate in 2023 [2] - The Northampton Distribution Center in the U.K. has also achieved TRUE Certification, diverting 90.8% of waste from landfills during the same period [2] - The company aims for zero waste to landfill from its facilities and a 50% waste diversion rate across strategic suppliers by 2030, with key suppliers diverting 77% of waste from landfills in 2024, a 1% increase from the previous year [3] Cotton Sourcing - In 2024, LS&Co. sourced over 80,000 metric tonnes of cotton, which constitutes nearly 90% of the raw materials used annually for its products [4] - The company acknowledges that climate change poses risks to cotton supply and production, despite some short-term benefits suggested by climate modeling [5] - To mitigate these risks, LS&Co. participates in the U.S. Cotton Trust Protocol and supports initiatives like the Better Cotton Initiative and the Organic Cotton Accelerator [6] Supply Chain Resilience - LS&Co.'s suppliers purchase cotton globally and ensure redundancy in the supply chain to minimize risks from disruptions caused by weather and climate-related issues [7] - The company’s supply chain is designed to be resilient, with any associated cost increases expected to be absorbed into regular business activities and considered in financial planning [7]

Summary of Levi Strauss & Co. FY Conference Call (September 16, 2025) Industry Overview - The denim category is valued at approximately $100 billion and is expected to grow in the mid-single digits moving forward [3][4] - The casual environment has significantly contributed to the growth of denim [3] Company Insights - Levi Strauss & Co. has been a market leader for 170 years and is focused on expanding the denim category [3] - The company has launched various denim styles, including a looser baggy fit, which currently represents about 15% of their product mix, while skinny and slim fits contribute 20% [4] - The company aims to become a $10 billion entity with a 15% operating margin over the next 12 to 18 months [6] Product Development and Marketing - The introduction of the Blue Tab premium category, inspired by Japanese denim, has been successful in both Asia and the U.S. [4][5] - Collaborations with influencers, such as Beyoncé, have positively impacted brand visibility and sales [5][6] - The company is expanding its Western wear offerings, which have seen increased demand [9][10] Direct-to-Consumer (DTC) Strategy - DTC now accounts for 50% of the company's business, up from 20% when the current leadership joined [12] - The company has experienced 13 consecutive quarters of positive comparable sales [16] - E-commerce has grown from 4% of total business pre-COVID to approximately 12% recently, with a target of reaching 15% [29] Financial Performance and Goals - Gross margin improved from less than 58% in 2023 to over 61% in 2024, driven by higher full-price sales and growth in DTC and international markets [38] - EBIT margins have increased from 9% to mid-11% over the past three years [39] - The company is focused on maintaining SG&A control to drive EBIT leverage [39] Operational Efficiency - The company is transitioning to a hybrid distribution model to improve efficiency and reduce costs [33][34] - Distribution expenses have increased due to e-commerce growth and inefficiencies in older distribution centers [31][32] - The company is working on eliminating unproductive SKUs to make room for new product innovations [24] Future Outlook - The company is confident in achieving its 15% margin target by sustaining mid-single-digit growth and improving gross margins [39] - There is a clear path to reaching $10 billion in revenue, with ongoing discussions about timelines and strategies [42] Additional Considerations - The company is navigating challenges related to tariffs and inflation, which have impacted consumer demand [41] - The leadership is committed to long-term growth and has established a clear path for achieving ambitious targets [42]

Core Insights - Levi Strauss & Co. will have Harmit Singh, the chief financial and growth officer, participate in a fireside chat at the Wells Fargo 8th Annual Consumer Conference on September 16, 2025 [1] - The event is scheduled for 10:15 a.m. Pacific time and will be available via live webcast on the Company's Investor Relations website [1] - A replay of the webcast will be accessible after the live event at the same location [1]

Core Insights - United Colors of Benetton is experiencing significant leadership changes in India, with the CEO, commercial director, and marketing head departing the company [1][2][3] - The company is undergoing a global restructuring plan aimed at reducing losses and closing stores due to increased competition and sluggish demand [3][4] - Despite a revenue decline of 6.6% to ₹874.06 crore in FY24, Benetton India reported a substantial profit increase to ₹90.36 crore from ₹9.94 crore in the previous fiscal year [6][7] Leadership Changes - Ramprasad Sridharan, the CEO and managing director, is leaving to pursue new opportunities, while Kaveri Nag, head of marketing, has already exited [2] - Nikhil Upadhye, the commercial director, left in March to join Ola Electric [2] - More departures are expected within the sales and online commerce teams as part of the restructuring [3] Financial Performance - The company faced challenges in 2023 due to the end of post-pandemic recovery, geopolitical tensions, inflation, and currency volatility [4] - A new business plan for 2024-2029 has been prepared to guide the company's economic recovery [4] - Cost reductions, particularly in material costs, have led to improved profit margins despite declining revenues [7] Market Position and Strategy - Benetton has a strong presence in India with over 300 exclusive stores and online sales [6] - The company remains committed to the Indian market, viewing it as a priority for growth despite recent challenges [11] - The global restructuring has led to concerns about future investments in India, with employees expressing uncertainty [9][8] Competitive Landscape - The retail environment is becoming increasingly competitive, with established retailers and homegrown brands intensifying competition [13] - Other retailers, such as Levi Strauss & Co. and Arvind Fashions, have also seen top management changes in the past year, indicating a broader trend in the industry [14]