Levi Strauss (LEVI.US) is one of the worst performing US stocks today, trading around 15% lower on the day. Company reported earnings for the first quarter of fiscal 2023 (December 2022 - February 2023) ahead of the Wall Street session open today. While Q1 results turned out to be better-than-expected by analysts, outlook was seen as cautious and triggered a share price drop.
Levi Strauss results for fiscal-Q1 2023 beat expectations
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Create account Try a demo Download mobile app Download mobile appEarnings reported by Levi Strauss for fiscal-Q1 2023 were an overall positive surprise. Net revenue as well as adjusted profit metrics came in above analysts' expectations. However, gross margin data missed expectations. Company also said that it took a net restructuring charge of $11.4 million related to lay-offs as well as $18.2 million charge related to discontinued technology projects. Impairments were a result of a plan aimed at cost reduction. Levi Strauss also decided to uphold its full-year forecasts and noted that it reflects cautious outlook on consumer spending.
Headline Q1 results
- Net Revenue: $1.69 billion vs $1.62 billion expected
- Gross Margin: 55.8% vs 56.9% expected
- Adjusted EBIT: $185.3 million vs $177.4 million expected
- Adjusted Net Income: $134.7 million vs $128.6 million expected
- Adjusted EPS: $0.34 vs $0.32 expected
Full-year forecasts
- Net revenue: $6.3-6.4 billion vs $6.3 billion expected
- Net revenue growth: 1.5-3.0%
- Adjusted EPS: $1.30-1.40 vs $1.33 expected
Levi Strauss (LEVI.US) launched today's trading with a big bearish price gap and continued to move lower during the session. Stock dropped below 50- and 200-session moving average at the open and later breached below the $15.60 support zone - painting a new 3-month low in the process. Source: xStation5
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