Levi Strauss Stock Dips On Q4 Earnings: The Details
Portfolio Pulse from Adam Eckert
Levi Strauss & Co (NYSE:LEVI) reported Q4 revenue of $1.64 billion, missing estimates by $0.02 billion, but earnings of 44 cents per share beat estimates by 1 cent. Direct-to-consumer revenues increased by 11%, while wholesale revenues fell by 2%. The company announced a workforce reduction of 10-15% as part of a productivity initiative expected to save $100 million in 2024, with associated restructuring charges of $110-$120 million in Q1. Levi expects 2024 revenue growth of 1-3% and adjusted earnings of $1.15 to $1.25 per share, below estimates of $1.33 per share. Shares fell 2.03% after hours.
January 25, 2024 | 9:41 pm
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NEGATIVE IMPACT
Levi Strauss reported mixed Q4 results with a slight revenue miss and an earnings beat. The company announced significant cost-saving measures including workforce reductions, but provided a 2024 outlook below analyst expectations.
The revenue miss and lower-than-expected 2024 outlook are likely to negatively impact investor sentiment in the short term. The announcement of workforce reductions, while potentially positive for long-term savings, may also contribute to negative sentiment due to the associated restructuring charges and the impact on employees.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100