NEW YORK, Oct. 28, 2025 (GLOBE NEWSWIRE) -- A securities fraud class action lawsuit against KinderCare Learning Companies, Inc. (NYSE:KLC) is pending. The lawsuit was filed by Robbins Geller Rudman & Dowd LLP. A previous press release stated incorrectly that Levi & Korsinsky filed the case. This press release makes that correction. There are no other changes. If you suffered a loss on your investment and want to learn about a potential recovery under the federal securities laws, follow the link below for mo ...

Core Insights - The brand has launched its Blue Tab collection to enhance its existing product lines [1] Product Offering - The new Blue Tab collection is designed to complement the brand's current offerings, which are priced as low as approximately $20 [1]

Core Insights - The introduction of tariffs by the US has significantly impacted Lesotho's textile industry, which is the largest sector in the country, leading to job losses and economic contraction [1][6]. Industry Overview - Textiles is the biggest industry in Lesotho, employing 12,000 people and indirectly supporting 40,000 jobs, primarily supplying US retailers like Walmart, JC Penney, and Levi Strauss [2]. - Prior to the new tariffs, most exports to the US entered duty-free under the African Growth and Opportunity Act, which has now been rendered defunct [2]. Economic Impact - The central bank of Lesotho had forecast modest growth for the textile sector before the tariffs were implemented, but the new outlook predicts contractions of 9.9% and 13.3% for the upcoming years [3]. - Lesotho's trade balance with the US is heavily skewed, with exports exceeding $235 million while imports were less than $3 million last year [3]. Employment and Social Context - The tariffs have exacerbated high unemployment rates in Lesotho, which stood at 30% last year, one of the highest globally [5]. - The founder of Afri-Expo Textiles described the tariffs as a shock comparable to the coronavirus pandemic, viewing it as a wake-up call for economic reform [5]. Political and Strategic Implications - Prime Minister Sam Matekane indicated ongoing negotiations with the US government for further tariff reductions, potentially down to 10% or zero [1]. - The tariffs have positioned Lesotho unfavorably compared to competitors like Kenya, prompting concerns about business relocations to countries with lower levies [1].

Group 1 - Levi's is restructuring its distribution network from primarily owned warehouses to a hybrid model that includes both owned and leased facilities operated by third-party logistics providers [3] - The company has closed an owned facility in Kentucky and established agreements with third-party logistics providers for new distribution centers in Canton, Mississippi, and Groveport, Ohio, with the Mississippi site replacing an owned facility [4] - The transformation aims to enhance service to direct-to-consumer channels, which account for over 40% of the U.S. market, and is expected to reduce distribution expenses and costs per unit [5] Group 2 - Levi Strauss & Co. plans to phase out the parallel operation of owned and leased distribution centers by early 2026, as stated by the EVP and Chief Financial and Growth Officer during the Q3 earnings call [8] - The company reported a 19.5% year-over-year increase in distribution costs for the quarter, attributed to charges from overlapping facilities and reclassification of certain e-commerce costs [8] - The company anticipates that costs will decline over time as the transition is completed, leading to greater efficiency and flexibility in serving both direct-to-consumer and wholesale channels [8]

Core Viewpoint - Levi Strauss & Co.'s updated earnings guidance has not met investor expectations, particularly in terms of earnings growth not keeping pace with sales expansion [1] Financial Performance - CFO Harmit Singh asserts that the company remains strong, characterized by accelerated growth, expanding margins, and higher return on invested capital [1] Market Dynamics - Discussion includes insights on denim sales and the impacts of tariffs on the industry [1]

Core Insights - Levi Strauss & Co. is experiencing a sales recovery and is projected to reach new highs by 2026, driven by a strategic transformation focusing on direct-to-consumer, omnichannel, and e-commerce initiatives [3][4] - The company maintains a strong balance sheet, generates healthy cash flow, and is committed to returning capital to shareholders, making it appealing for income-oriented investors [3][5] Financial Performance - In the latest quarter, Levi's core business grew by 6.9%, outperforming market expectations, with Asia leading growth at 12% [8][9] - The company reported adjusted earnings of $0.34, a 3% year-over-year increase, significantly exceeding expectations [9][10] Capital Return Strategy - Levi Strauss has initiated an accelerated share repurchase program worth approximately 1.2% of its market cap, expected to be completed by the fiscal year's end [4] - The annualized dividend payment for FY2025 is projected at 56 cents, representing about 41% of the earnings outlook, supported by strong cash flow [5][6] Market Outlook - Analysts are bullish on Levi Strauss, with a 12-month stock price forecast of $26.36, indicating a potential upside of 22.21% [11] - Institutional investors have been consistently buying shares, accumulating over $2 for every $1 sold, indicating strong market support [12] Technical Analysis - Following the recent earnings release, the stock experienced a bearish trend, selling off by more than 8% in pre-market trading, creating a potential buying opportunity [12][13] - A strong support target is identified near $21.70, which may trigger a rebound if the stock price declines further [13]

Market Sentiment and Performance - U.S. equity futures are showing a strong rebound, indicating a positive start to the week, driven by President Trump's conciliatory tone on trade relations with China [1][3] - Dow Jones Industrial Average (DJIA) futures are up approximately 0.9% to 1.44%, S&P 500 (SPX) futures have climbed between 1.2% and 1.43%, and Nasdaq 100 (NDX) futures are leading with gains of 1.4% to 2.69% [2] - The broader U.S. stock market index (US500) has risen to 6638 points, reflecting a 1.30% increase from the previous session and a 13.27% increase over the past year [4] Major Stock Movements - The "Magnificent 7" technology giants are experiencing significant gains, with Nvidia Corp. up 3.57%, Tesla Inc. up 2.70%, and Amazon.com Inc. climbing 2.09% [9] - Chipmakers like Advanced Micro Devices (AMD) and Nvidia (NVDA) are poised for a strong rebound after being affected by trade concerns [10] - MP Materials, a key player in rare earth minerals, surged 10% in premarket trading due to easing U.S.-China trade tensions [11] Earnings Season and Economic Indicators - The upcoming week marks the start of earnings season, with major financial institutions set to report third-quarter results, including JPMorgan Chase, Wells Fargo, and Goldman Sachs [7] - Investors are closely monitoring economic indicators, including the NAHB Housing Market Index and various production and employment figures, despite the ongoing U.S. government shutdown [6] International Trade Data - China's September trade figures showed exports surging 8.3% year-over-year and imports growing 7.4%, indicating resilience amid global trade tensions [8]

Core Insights - Levi Strauss reported a 7% year-on-year increase in net revenues to $1.5 billion for Q3 2025, with growth across various regions and channels [1][2][4] Revenue Performance - Net revenues in the Americas increased by 6% reported and 7% organically, with the US up 3% organically [1] - Europe saw a growth of 5% reported and 3% organic, while Asia experienced a significant growth of 12% on both measures [1] - Direct-to-consumer (DTC) revenue climbed 11% reported and 9% organically, with e-commerce sales up 18% reported and 16% organic, accounting for 46% of total revenue [2] - Wholesale revenue grew by 3% reported and 5% organic [2] Profitability Metrics - Adjusted net income for Q3 2025 was $135.7 million, slightly up from $133.9 million in the same period last year [2] - Adjusted diluted earnings per share (EPS) stood at $0.34 [2] - Gross margin expanded by 110 basis points to 61.7%, driven by a favorable channel mix and price hikes [3] - Operating margin improved to 10.8% in Q3 2025, compared to 2.3% a year earlier [3] Liquidity and Financial Guidance - As of August 31, 2025, cash and cash equivalents were $613 million, with total liquidity of $1.5 billion [3] - The company completed the sale of its Dockers intellectual property and operations in the US and Canada for $194.7 million [3] - For fiscal 2025, the company raised its reported net revenue growth expectation to around 3% and organic growth to 6% [4] - Adjusted diluted EPS outlook was lifted to between $1.27 and $1.32 [4] Strategic Direction - The CEO stated that the company's pivot to a DTC-first, head-to-toe denim lifestyle retailer is driving significant financial performance improvements [5] - The company is well-positioned for the holiday season and expresses confidence in sustained, profitable growth into 2026 and beyond [6]

Core Viewpoint - Levi Strauss (LEVI) shares fell by 11.5% in late trading on Friday, raising concerns about the impact of tariff costs on the company's profit outlook [1] Company Summary - The decline in Levi Strauss's stock price reflects market apprehension regarding potential tariff costs affecting profitability [1]

Core Insights - Levi Strauss & Co. raised its full-year revenue and profit forecast after a stronger-than-expected quarterly performance driven by robust denim demand and growth in direct-to-consumer sales [1] - Despite the positive outlook, shares fell over 11% following Morgan Stanley's analysis indicating disappointing profitability flow-through from the upgraded guidance [1] Financial Performance - For Q3, Levi reported earnings of $0.34 per share, exceeding Wall Street's consensus estimate of $0.30 [1] - Revenue increased to $1.54 billion from $1.50 billion year-over-year, surpassing analyst expectations of $1.50 billion [1] Future Guidance - The company now forecasts fiscal 2025 adjusted earnings of $1.27 to $1.32 per share, up from the previous range of $1.25 to $1.30 [2] - Levi raised its reported net revenue growth outlook to around 3%, an increase from the prior estimate of 1% to 2% [2] - Projected organic growth is now roughly 6%, compared to the earlier estimate of 4.5% to 5.5% [2] Margin Expectations - Gross margin is expected to expand by 100 basis points this year, an increase from the prior forecast of 80 basis points [2] - Adjusted EBIT margin is anticipated to remain between 11.4% and 11.6% [2]