Levi Strauss Stock Slumps After Slight Revenue Miss

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published June 27, 2024
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 Takeaways

  • Levi 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 Guidance

Levi 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.

Article Sources
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  1. Levi Strauss. "Levi Strauss & Co. Reports Second-Quarter 2024 Financial Results."

  2. Levi Strauss & Co. "Levi Strauss & Co. Q2 2024 Earnings Conference Call."

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