HomeFinancial MarketsLevi’s Stock Sinks After Earnings Fall Short of Analysts’ Expectations

Levi’s Stock Sinks After Earnings Fall Short of Analysts’ Expectations

Denim is having its moment under the spotlight again, but the iconic denim apparel producer Levi Strauss & Co. hasn’t managed to benefit from this as expected.

Sharing its quarterly report this week, Levi’s revealed earnings that fell short of analysts’ expectations. While the company recorded adjusted earnings per share of $0.16 compared to an estimated $0.11, its revenue of $1.44 billion came below the $1.45 billion that Wall Street expected. This is the third time that Levi’s missed revenue in the past four quarters.

The company also reiterated its full-year guidance and forecasts between $1.17 and $1.27 earnings per share. Analysts expected $1.27 in earnings per share and revenue of $6.36 billion for 2024.

Levi’s finance chief Harmit Singh attributed the miss in sales to the weaker performance of its brand Docker’s as well as “unfavorable foreign exchange conditions.”

 “People are generally cautious,” Singh told CNBC in an interview. “It’s not necessarily an environment where people are buying a lot, people are cautious.”

The investors were unimpressed with Levi Strauss’ earnings. The company’s stock sank in the aftermarket trading, losing 17.82% of its value compared to a close price of $23.12. Before the plunge, Levi’s stock was 42.19% year-to-date.

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