What to Expect When Levi Strauss Reports After the Close

Levi Strauss & Co. (NYSE: LEVI | LEVI Price Prediction) is scheduled to release its third-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $0.28 in earnings per share (EPS) and $1.44 billion in revenue.

During the second quarter, net revenues grew 5% on a reported basis and 9% on a constant-currency basis.

At that time, the company’s direct-to-consumer business grew reported revenues by 9%, primarily due to performance and expansion of the retail network and e-commerce growth. The company had 78 more company-operated stores at the end of the second quarter of 2019 than it did a year prior. The company’s wholesale business grew reported revenues by 3%, reflecting growth in all the regions.

Second-quarter net income decreased $49 million, primarily due to $29 million of costs associated with the company’s IPO, inclusive of $25 million of underwriting commissions paid on behalf of the selling stockholders.

Excluding Tuesday’s move, Levi had underperformed the broad markets, with the stock down about 12% year to date. In the past quarter, the stock was down 16%.

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A few analysts weighed in on Levi ahead of the report:

• Guggenheim has a Buy rating.
• Merrill Lynch has a Buy rating and a $20 price target.
• Goldman Sachs has a Sell rating with a $19 price target.

Shares of Levi Strauss traded down less than 1% to $19.67 on Tuesday, in a post-IPO range of $16.00 to $24.50. The consensus price target is $22.86.

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