Why Levi Strauss Shares Are Gaining Today
Portfolio Pulse from Nabaparna Bhattacharya
Levi Strauss & Co (NYSE:LEVI) shares rose in premarket trading after reporting Q1 earnings of 26 cents per share, surpassing analyst estimates of 21 cents. Despite a decline in operating margin and adjusted EBIT margin due to restructuring charges from Project Fuel, the company announced a dividend and raised its FY24 EPS guidance. Sales decreased by 7.76%, but direct-to-consumer revenues grew by 7%. Cash and total liquidity remained strong.
April 04, 2024 | 1:20 pm
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POSITIVE IMPACT
Levi Strauss reported higher-than-expected Q1 earnings, announced a dividend, and raised FY24 EPS guidance, despite a sales decrease and restructuring charges.
The positive earnings surprise and raised guidance signal strong company performance and future prospects, likely boosting investor confidence and stock price in the short term. The announcement of a dividend further supports a positive outlook, despite the sales decrease and restructuring charges which might have been anticipated by the market.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100