We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Founded in 1873 in San Francisco, Levi Strauss & Co. (LEVI - Free Report) is a retail company known around the world for its iconic Levi’s denim brand; Dockers, Denizen, and Signature by Levi Strauss & Co. are also under the company’s umbrella. LEVI first went public back in 1971, but had been a private company up until its market return a couple of years ago.
Q2 Earnings Recap
Shares of Levi Strauss popped after reporting better-than-expected second-quarter results earlier this month.
Revenue soared 156% year-over-year to 41.28 billion, with growth driven by strength across the U.S. and China. Its wholesale channel’s net sales increased 167% and its direct-to-consumer segment rose 141%, while Levi’s e-commerce business grew 42% compared to the prior-year period.
Adjusted earnings per share of $0.23 beat the Street consensus estimate of $0.09 per share and strongly rebounded from the adjusted net loss of $0.48 it recorded in Q2 2020.
Operating cash flow rocketed 500% higher for the first half of 2021 to $248 million, and the retailer now has $1.22 billion in cash and cash equivalentson hand. Additionally, Levi raised its quarterly dividend to $0.08 per share, which yields about 0.91% on an annual basis.
LEVI Breaks Out
Shares have surged recently, up about 36% year-to-date compared to the S&P 500’s gain of 15.1%. Estimates have been rising too, and LEVI is a Zacks Rank #1 (Strong Buy) right now.
For the current fiscal year, four analysts have revised their bottom-line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up $0.23 to $1.34 per share. Earnings are expected to grow about 538% compared to the prior year period, and 2022 should generate even more profits as well.
Looking ahead, Levi Strauss expects good things to continue for the rest of the year. Sales are expected to jump between 28% to 29% for the H2 2021, representing growth of 4% to 5% compared to the second half of fiscal 2019. "Revenues in most markets are recovering faster than anticipated," CFO Harmit Singh said, "and we are emerging from the pandemic with sustainable and improved structural economics."
Additionally, only 8% of Levi’s stores are closed due to pandemic restrictions, as the recovery of demand continues to be strong in all of its geographic regions.
All in all, the denim retailer has bounced back nicely from Covid-19’s hit to its business, and investors should expect more growth and potentially higher share price.
If you’re an investor searching for a retail stock to add to your portfolio, make sure to keep LEVI on your shortlist.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bull of the Day: Levi Strauss & Co. (LEVI)
Founded in 1873 in San Francisco, Levi Strauss & Co. (LEVI - Free Report) is a retail company known around the world for its iconic Levi’s denim brand; Dockers, Denizen, and Signature by Levi Strauss & Co. are also under the company’s umbrella. LEVI first went public back in 1971, but had been a private company up until its market return a couple of years ago.
Q2 Earnings Recap
Shares of Levi Strauss popped after reporting better-than-expected second-quarter results earlier this month.
Revenue soared 156% year-over-year to 41.28 billion, with growth driven by strength across the U.S. and China. Its wholesale channel’s net sales increased 167% and its direct-to-consumer segment rose 141%, while Levi’s e-commerce business grew 42% compared to the prior-year period.
Adjusted earnings per share of $0.23 beat the Street consensus estimate of $0.09 per share and strongly rebounded from the adjusted net loss of $0.48 it recorded in Q2 2020.
Operating cash flow rocketed 500% higher for the first half of 2021 to $248 million, and the retailer now has $1.22 billion in cash and cash equivalentson hand. Additionally, Levi raised its quarterly dividend to $0.08 per share, which yields about 0.91% on an annual basis.
LEVI Breaks Out
Shares have surged recently, up about 36% year-to-date compared to the S&P 500’s gain of 15.1%. Estimates have been rising too, and LEVI is a Zacks Rank #1 (Strong Buy) right now.
For the current fiscal year, four analysts have revised their bottom-line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up $0.23 to $1.34 per share. Earnings are expected to grow about 538% compared to the prior year period, and 2022 should generate even more profits as well.
Looking ahead, Levi Strauss expects good things to continue for the rest of the year. Sales are expected to jump between 28% to 29% for the H2 2021, representing growth of 4% to 5% compared to the second half of fiscal 2019. "Revenues in most markets are recovering faster than anticipated," CFO Harmit Singh said, "and we are emerging from the pandemic with sustainable and improved structural economics."
Additionally, only 8% of Levi’s stores are closed due to pandemic restrictions, as the recovery of demand continues to be strong in all of its geographic regions.
All in all, the denim retailer has bounced back nicely from Covid-19’s hit to its business, and investors should expect more growth and potentially higher share price.
If you’re an investor searching for a retail stock to add to your portfolio, make sure to keep LEVI on your shortlist.