Jump to content
The Twitter Feeds are now back on the Platform ×

Levi Strauss shares under pressure amid warning on outlook


MongiIG

Recommended Posts

While Q3 earnings beat expectations, revenue missed forecasts and the company issued a warning for the full-year.

 

 

 Jeremy Naylor | Writer, London | Publication date: Friday 07 October 2022 

Earnings

Despite third quarter (Q3) earnings at Levi Strauss beating expectations, revenue missed forecasts and the company issued a warning for the full-year (FY). The stock will fall 5% at the open today after having fallen 4% during yesterday’s trade.

Video Transcript

Levi shares fall

Levi Strauss shares fell 5% in extended trade last night after the group cut its full-year profit forecasts. This is on top of the 4% drop during normal hours.

Levi Strauss posted earnings of $0.40 a share for the third quarter, $0.03 higher than consensus. Revenue missed expectations, though, as the denim maker has to deal with softening demand.

The strengthening dollar and persisting supply chain issues, with inflation at decade highs across the globe and a looming recession, consumers are moving away from these higher priced products and clothes generally to essentials such as food and energy.

The strengthening dollar is also affecting Levi Strauss' margins, down 60 basis points compared with this time last year at 56.9%.

The company now expects full-year 2022 adjusted profit of between $1.44 and $1.49 per share compared to prior forecasts of $1.50 to $1.56.

Now you can see during the session yesterday we saw this 4.0% drop. Add to that a 5% drop when we see shares opened today and you're in this area down here challenging the 1500 level.

So, we're watching that stock at the start of the day's trade after the outlook disappointed investors.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      21,679
    • Total Posts
      92,028
    • Total Members
      41,967
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Hanlon81
    Joined 30/03/23 17:41
  • Posts

×
×
  • Create New...