Levi Strauss Stock Slumps After Slight Revenue Miss
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Jakub Porzycki / NurPhoto via Getty Images' title='Levi's logo is seen at a store in the shopping mall in Krakow, Poland on April 20, 2024'>
Jakub Porzycki / NurPhoto via Getty Images
Key TakeawaysLevi Strauss narrowly missed second-quarter sales forecasts as its Dockers brand underperformed.Levi Strauss affirmed its full-year revenue and adjusted earnings per share (EPS) outlook, but Goldman Sachs analysts were disappointed the company didn't raise its guidance.Shares had risen roughly 40% in 2024 through Wednesday's close but sank 17% in intraday trading Thursday.
Shares of Levi Strauss (LEVI) cratered Thursday, a day after the jeans maker missed sales estimates and kept its guidance steady on weakness in wholesale revenue and demand for its Dockers brand. The company reported second-quarter revenue rose 7.8% to $1.44 billion, slightly short of the $1.45 billion expected by analysts surveyed by Visible Alpha. Adjusted earnings per share (EPS) of $0.16 exceeded forecasts.Company executives explained in the call with analysts that the Dockers brand underperformed in the period, impacting overall sales. "Dockers was down 1% on an adjusted basis, coming in below our expectations," Chief Executive Officer (CEO) Michelle Gass said.Levi Strauss Affirms FY Outlook; Goldman Sachs Analysts Were Looking for Raised GuidanceLevi Strauss reiterated its full-year outlook of revenue gaining 1% to 3% year-over-year, and adjusted EPS of $1.17 to $1.27. However, Goldman Sachs analysts wrote in a note that the "lack of FY guidance raise ... is disappointing."Shares of Levi Strauss had risen nearly 40% for 2024 through Wednesday's close, but sank 17% to $19.12 as of 10:30 a.m. ET Thursday. Read the original article on Investopedia.
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