Levi Strauss (LEVI.US) stock surged nearly more than 9% after the jeans retailer posted better than expected quarterly figures. Company earned 48 cents per share, easily beating analysts' estimates of 37 cents. Compared to last year's pandemic-hobbled Q3, Levi's earnings increased over 570%. Compared to the more normal year of 2019, earnings were still up a very respectable 57%.
Revenue figures also topped market expectations as easing of pandemic restrictions prompted customers to refresh their wardrobes. Third-quarter revenues jumped 41% to $1.50 billion from $1.06 billion last year. Meanwhile analysts expected revenue of $1.48 billion. E-commerce growth rose 41% from last year, while revenues through all digital channels increased 87%.
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Create account Try a demo Download mobile app Download mobile app"We delivered a strong quarter with revenue growth versus pre-pandemic 2019 levels, despite a more difficult macro-environment than we expected," said Chip Bergh, president and company's CEO "These results reflect the strength of the Levi's brand, improving momentum in our direct-to-consumer business and the scale and agility of our supply chain network where we have executed against macro-headwinds exceptionally well."
For the current quarter, Levi Strauss expects adjusted earnings in the region from $0.38 to $0.40 per share and revenue growth of 20 to 21%. Analysts currently estimate earnings of $0.39 per share on revenue growth of 22%.
Levi Strauss (LEVI.US) stock launched today's session sharply higher, however buyers failed to break above the local resistance at $26.90 which coincides with upper limit of the descending channel and 200 SMA (red line). Price pulled back slightly and the nearest support lies at $26.20 and is marked by the 38.2 Fibonacci retracement of the last downward wave and previous price reactions. On the other hand, should the break above the aforementioned resistance at $26.90 occur, then upward move may accelerate towards resistance at $27.70 which coincides with 61.8% Fibonacci retracement. Source: xStation5
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