Company Performance - Levi Strauss (LEVI) closed at $18.83, reflecting a -1.31% change from the previous day, underperforming the S&P 500's daily loss of 0.3% [1] - Over the past month, shares of Levi Strauss gained 11.06%, outperforming the Retail-Wholesale sector's gain of 5.02% and the S&P 500's gain of 3.42% [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of $0.33, representing a 17.86% increase compared to the same quarter last year [2] - Quarterly revenue is anticipated to be $1.55 billion, up 2.7% from the year-ago period [2] Full-Year Estimates - Full-year Zacks Consensus Estimates project earnings of $1.25 per share and revenue of $6.31 billion, indicating year-over-year changes of +13.64% and +2.12%, respectively [3] Analyst Estimates - Recent adjustments to analyst estimates for Levi Strauss reflect short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which includes estimate changes, currently ranks Levi Strauss at 3 (Hold) [6] Valuation Metrics - Levi Strauss has a Forward P/E ratio of 15.32, which is a discount compared to the industry's average Forward P/E of 15.98 [7] - The company has a PEG ratio of 1.11, while the Retail - Apparel and Shoes industry had an average PEG ratio of 1.84 [7] Industry Ranking - The Retail - Apparel and Shoes industry holds a Zacks Industry Rank of 97, placing it in the top 39% of over 250 industries [8]

In the latest market close, Levi Strauss (LEVI) reached $19.08, with a -0.63% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.16%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq depreciated by 0.3%. The jeans maker's shares have seen an increase of 9.65% over the last month, surpassing the Retail-Wholesale sector's gain of 5.52% and the S&P 500's gain of 3.64%. Market participants will be closely following the financial result ...

Levi Strauss (LEVI) closed the latest trading day at $18.94, indicating a -1.81% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.89%. Elsewhere, the Dow lost 0.44%, while the tech-heavy Nasdaq lost 1.67%. The jeans maker's shares have seen an increase of 10.23% over the last month, surpassing the Retail-Wholesale sector's gain of 2.93% and the S&P 500's gain of 2.17%. The upcoming earnings release of Levi Strauss will be of great interest to investor ...

Levi Strauss (LEVI) closed the most recent trading day at $18.99, moving +0.96% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.2%. Meanwhile, the Dow experienced a rise of 0.24%, and the technology-dominated Nasdaq saw an increase of 0.21%. The jeans maker's shares have seen an increase of 2.45% over the last month, surpassing the Retail-Wholesale sector's loss of 1.25% and the S&P 500's loss of 1.49%. The investment community will be paying close attention to the earnin ...

Levi Strauss (LEVI) closed at $17.52 in the latest trading session, marking a -0.9% move from the prior day. This move lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq added 0.51%. The jeans maker's stock has dropped by 7.53% in the past month, falling short of the Retail-Wholesale sector's loss of 6.2% and the S&P 500's loss of 4.45%. Market participants will be closely following the financial results of Levi Strauss in its upcoming release. It is antic ...

Marina Shvetsova/iStock via Getty Images Review Aside from DTC, it was also encouraging to learn that LEVI saw sequential improvement in wholesale sell-through in the US and Europe, highlighting more normalized channel inventory levels and continued improvement in US trends exiting the quarter. These are a few implications from this. Firstly, this tells us that consumer demand for denim products has improved. Secondly, this means lower pressure on the LEVI balance sheet to hold inventories on its balance sh ...

LEVI Jeff Greenberg | Universal Images Group | Getty Images Levi Strauss shoppers are taking that advice to heart. Levi Strauss executives are ecstatic. "The growing popularity of Western wear is at an all-time high," CEO Michelle Gass told analysts Wednesday night after the California-based retailer's latest earnings report for the quarter ended in May. Beyond Beyoncé's chart-topping "Cowboy Carter" album, the increased ubiquity of Western style has also been tied to a fashion line unveiled by Louis Vuitto ...

Core Viewpoint - Today's sell-off in Levi stock presents a potential buying opportunity for value investors despite the company's mixed earnings report [1]. Group 1: Earnings Performance - Analysts had forecasted Levi Strauss would earn $0.11 per share on $1.45 billion in sales for Q2 2024, but the company actually earned $0.16 per share, nearly 50% more than expected, with sales at $1.44 billion [2]. - Levi's sales grew by 8% year over year, and the company reported a record gross profit margin of 60.5%, attributed to its shift towards a direct-to-consumer (DTC) model [3]. Group 2: Cash Flow and Valuation - The DTC strategy has led to a significant increase in free cash flow (FCF), with $437 million generated in positive FCF so far this year, compared to negative $66 million in the first half of 2023 [4]. - The trailing-12-month FCF stands at $613 million, resulting in a price-to-free-cash-flow ratio of 12.6, indicating an attractive valuation for the stock [4][5]. Group 3: Stock Reaction and Accounting Clarification - Despite the earnings beat, Levi's stock fell by 16.5% on the day of the report, raising questions about the sustainability of the earnings [6]. - The reported earnings of $0.16 per share were pro forma, while the GAAP profit was only $0.04 per share, which may have contributed to the stock's decline [7].

The company also announced a shift from a primarily owned-and-operated distribution and logistics network in the US and Europe to one that relies more heavily on third-party providers. With Post wires Levi Strauss'shares tumbled more than 15% on Thursday after weakness in the denim maker's wholesale business led to downbeat second-quarter revenue. Levi Strauss has been grappling with choppy demand in its wholesale business as retailers have remained cautious about restocking against the backdrop of consumer ...

Core Viewpoint - Levi Strauss & Co. reported Q2 2024 earnings that were slightly better than expected in terms of revenue but fell short of market expectations, leading to a significant drop in stock price by 20% [3][5]. Financial Performance - Revenue increased by 7.5% year-over-year, but the company barely missed top-line revenue consensus [9]. - Adjusted operating income rose significantly from $10 million last year to $77 million this year, while unadjusted operating income was $22 million [4]. - Direct-to-Consumer (DTC) revenues grew by 8.2%, with North American DTC and wholesale revenues up 17% [4]. - E-commerce sales increased by 19% year-over-year, indicating strong performance in the DTC channel [4]. Market Reaction - The stock opened down 20% following the earnings report, reflecting market disappointment despite the revenue growth [3][5]. - The market had high expectations for growth, particularly in the denim sector, which were not met by Levi's results [11]. Valuation Concerns - Levi's current P/E ratio is between 15x and 16.5x, which is considered elevated given the company's growth prospects [10]. - The stock price decline indicates that the market is concerned about potential multiple contraction if earnings growth does not meet expectations [2][10]. - The company has reaffirmed guidance for adjusted EPS of $1.17 to $1.27 for the year, but this does not alleviate concerns about the sustainability of its current valuation [10]. Strategic Insights - Management acknowledged the need to improve productivity and profitability in the DTC channel, which is currently less profitable than wholesale operations [10]. - The company has expanded gross margins by nearly 200 basis points, driven by lower costs and higher-margin DTC sales [4]. - Despite the positive trends in the denim market, Levi has struggled to surpass its all-time high sales from the late 1990s, raising questions about future growth potential [10].