Levi Strauss To Report Q1 Earnings Next Week, Analyst Sees Gross Margin Growth, Stabilizing Wholesale Business
Portfolio Pulse from Nabaparna Bhattacharya
Levi Strauss & Co (NYSE:LEVI) is set to report its Q1 2024 earnings next week, with Telsey Advisory Group analyst Dana Telsey maintaining an Outperform rating and raising the price target to $22 from $18. Despite expecting a 9.3% decline in net revenues year over year to $1.532 billion, Telsey forecasts a 150 bps gross margin expansion to 57.3%. The company's new initiative aims for $100 million in cost savings in FY24, contributing to an anticipated improvement in EBIT margin in the second half. LEVI shares rose 2.52% to $19.27.
March 27, 2024 | 6:49 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Levi Strauss & Co's Q1 2024 earnings outlook is positive with an Outperform rating and a raised price target to $22. Despite a projected revenue decline, gross margin expansion and significant cost savings are expected.
The positive adjustment in Levi Strauss & Co's price target by Telsey Advisory Group, coupled with the anticipated gross margin expansion and cost-saving initiatives, suggests a strong financial outlook. These factors, along with the current share price increase, indicate a likely positive short-term impact on LEVI's stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100