Why Is Levi Strauss Stock Falling Thursday?

Levi Strauss & Co. (NYSE: LEVI ) stock fell in premarket trading Thursday despite the apparel maker reporting second-quarter results that topped Wall Street estimates and raising its full-year guidance. Before the earnings release, Levi Strauss shares were trading near their 52-week high. With high expectations already reflected in the stock, investors appeared to be looking for a larger increase in the company’s outlook despite the earnings beat and raised guidance.

Levi Strauss Second-Quarter Earnings The company posted adjusted earnings of 28 cents per share, ahead of analysts’ estimates of 24 cents. 520 billion. Organic revenue increased 6% year over year, driven by strong international demand, particularly in Asia. Adjusted EBIT margin expanded 70 basis points to 9%, while adjusted EBITDA climbed 18%.

Inventories declined 7%, and the company ended the quarter with $849 million in cash and cash equivalents as of May 31. International Growth Drives Regional Performance The Americas remained the strongest region, with reported revenue rising 9% and organic sales increasing 7%. S. revenue grew 5%.

Europe posted 4% reported growth, although organic revenue slipped 1% due to the timing impact of last year’s distribution center transition. Asia continued to outperform, with reported revenue increasing 10% and organic sales rising 12%. Beyond Yoga revenue grew 16%. , Europe and Asia.

E-commerce sales climbed 19%, supported by higher traffic, better conversion rates, increased units per transaction, higher average unit retail and lower promotional activity. Wholesale revenue increased 5%. Shareholder Returns Remain A Priority Levi Strauss also highlighted its shareholder returns. The company launched a $200 million accelerated share repurchase program in the first quarter, which is expected to finish in the third quarter.

It had $240 million remaining under its broader repurchase authorization as of May 31. The board also raised the quarterly dividend 14% year over year to 16 cents per share. 48. 50.

696 billion. 5%. For the third quarter, Levi Strauss expects revenue growth of 4%-5% and adjusted earnings of 34-36 cents per share. The company also plans to open 50-60 new stores this year, with most openings scheduled for the second half.

Levi Strauss reiterated its long-term targets of reaching $10 billion in annual revenue and a 15% operating margin. 90 during premarket trading on Thursday, according to Pro data. Photo via Shutterstock