Connect with us

Hi, what are you looking for?


Levi’s stock is down 10% on Friday: should you buy?

Levi Strauss & Co (NYSE: LEVI) is down nearly 10% on Friday even though the clothing company reported better-than-expected profit for its fiscal third quarter.

Is Levi’s stock a buy after today’s sell-off?

But market tends to be forward looking and that’s where the multinational lacked.

It lowered its guidance for the full financial year that evoked a meaningful sell-off this morning. Still, Hightower’s Stephanie Link continues to recommend investing in Levi’s stock. Speaking with CNBC, she said:

Levi’s is positioned better than its competition. 65% of their business is men and they’re staying non-dressy. At 10 times earnings with a 3.0% yield, already down 36%, great management team too, I like it here.

Link says the weakness was not surprising since the headwinds (strong dollar, slowing consumer demand, supply constraints etc.) were well documented.

Levi’s now forecasts about a 7.0% annualised growth in net revenue this year – nearly half of what it had guided for earlier. It expects full-year earnings to fall between $1.44 a share and $1.49 a share.

It’s commitment to about $10 billion in revenue by 2027, however, remained unchanged.

Notable figures in Levi’s Q3 earnings report

Adjusted net income printed at $161 million versus the year-ago $197 million
Per-share earnings (adj) went down year-on-year from 48 cents to 40 cents
Net sales of $1.50 billion were up only 1.0%, as per the earnings press release

FactSet consensus was 37 cents of adjusted EPS on $1.60 billion in net sales
Ended the quarter with inventories up 43% on a year-over-year basis
Adjusted gross margin stood at 56.9% – down 60 basis points from last year

According to Levi’s, supply constraints resulted in up to $40 million hit to sales in Q3. It blamed currency headwinds and discounting for the hit to margins. Versus its high in May of 2021, the Levi’s stock is now down more than 50%.

The post Levi’s stock is down 10% on Friday: should you buy? appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...


    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...


    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023