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Here's How Levi Strauss (LEVI) Looks Just Ahead of Q4 Earnings

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Levi Strauss & Co. (LEVI - Free Report) is likely to register top-line and bottom-line declines when it reports fourth-quarter fiscal 2022 earnings on Jan 25 after the closing bell. The Zacks Consensus Estimate for quarterly earnings has been stable over the past 30 days at 31 cents and suggests a decrease of 24.4% from the year-earlier quarter’s tally. The consensus estimate for quarterly revenues stands at $1,582 million, which indicates a dip of 6.4% from the year-ago quarter’s level.

For fiscal 2022, the Zacks Consensus Estimate for earnings has been stable over the past 30 days at $1.46 and suggests a marginal drop from the $1.47 earned last fiscal. The consensus estimate for quarterly revenues stands at $6.16 billion, which indicates an improvement of about 6.8% from the year-ago reported figure.

A glimpse of the company’s performance over the trailing four quarters reveals that it has delivered an earnings surprise of 11.6%, on average. In the last reported quarter, the company’s earnings beat the consensus mark by 8.1%.

Key Factors to Note

Levi Strauss’ fourth-quarter results were hurt by the challenging operating backdrop, including supply-chain bottlenecks, inflationary pressures and a promotional landscape. Additionally, unfavorable currency fluctuations and stiff competition remain concerns. Deleverage in selling, general and administrative expenses, including increased distribution expenses and strategic investments in IT and direct-to-consumer business, along with the aforesaid headwinds might have weighed on the company’s profitability during the quarter under review.

However, Levi Strauss’ omnichannel initiatives and brand strength appear encouraging. The company has been strengthening its omni capabilities including Buy Online, Pick-up in Store, line-queuing, same-day delivery, mobile checkout and return capabilities including contactless returns. LEVI has been elevating brands, investing in digital tools and capabilities and pacing up efforts to diversify across geographies, product categories and distribution channels.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Levi Strauss this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Levi Strauss has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

Stocks with Favorable Combination

Here are some companies which according to our model have the right combination of elements to beat on earnings:

Five Below (FIVE - Free Report) currently has an Earnings ESP of +0.63% and a Zacks Rank of 2. The company is likely to register bottom-line improvement when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.05 suggests an increase from the $2.49 reported in the year-ago quarter.

Five Below’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.10 billion, which indicates an improvement of 10.7% from the figure reported in the prior-year quarter. FIVE has a trailing four-quarter earnings surprise of 26.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oxford Industries (OXM - Free Report) currently has an Earnings ESP of +0.47% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.14 suggests an increase of 27.4% from the year-ago reported number.

Oxford Industries’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $378.7 million, which suggests growth of 26.3% from the prior-year quarter. OXM has a trailing four-quarter earnings surprise of 18.9%, on average.

Crocs (CROX - Free Report) currently has an Earnings ESP of +1.79% and a Zacks Rank of 3. The company is likely to register bottom-line improvement when it reports fourth-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.15 remains flat with the year-ago quarter’s level.

Crocs’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $938.5 million, which indicates an improvement of 60% from the figure reported in the prior-year quarter. CROX has a trailing four-quarter earnings surprise of 18.2%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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