Denim jeans maker Levi Strauss (NYSE: LEVI) reported third quarter 2019 financial results that surpassed the market’s estimates. In its second earnings report after becoming public in March 2019, Levi Strauss posted adjusted earnings of $0.31 per share on revenue of $1.45 billion. Analysts had projected the company to earn $0.28 per share on revenue of $1.44 billion.
The San Francisco, California-based company reaffirmed its fiscal year 2019 outlook. LEVI stock, which ended down 1.92% today at $19.39, was up about 1% in the after-market session immediately after the earnings announcement.
GAAP profit per share declined 3% year-over-year to $0.30, while revenue grew 4% on a reported basis and 5% on a constant currency basis.
“As for the fourth quarter, we again expect strong performance in international, direct-to-consumer, women’s and tops, and improved comparisons for U.S. wholesale,” said CEO Chip Bergh.
For the fiscal year 2019, Levi Strauss maintained its outlook. The company expects constant-currency revenue growth to be 5.5% to 6.0%. Capital expenditure for the full fiscal year is estimated to be between $190 million and $200 million. Levi Strauss expects to open nearly 100 new company-operated stores in 2019.
Revenue in the Americas region fell 3% both on a reported basis and constant-currency basis due to a drop in the wholesale business. Europe and Asia regions had a reported revenue growth of 14% and 9%, respectively, benefitting from strong performance from direct-to-consumer and wholesale channels in the regions.
In August, shares of Levi Strauss traded below its IPO price of $17 and reached a low of $16.00.
The massive slowdown in the IPO market continued in the second half as the challenges posed by high inflation and interest rate hikes weighed on investor confidence. Meanwhile, there is
The automotive sector is one of the worst affected by the combination of high inflation and rising interest rates. Consumers have become more cautious and are prioritizing their purchases with
The IPO market has witnessed muted activity this year, and things don’t seem to have improved in the second half. The upcoming public listing of video game technology firm Ultimax