Jim Cramer - Mad MoneyLevi Strauss & Co.LEVIBUY ON WEAKNESSOct 26, 2020
A bullish trend is leisurewear in an age when nobody cares if you wear a suit at home It's thriving now, because their digital business is thriving, the stock popping $12 to $16 this year. It tumbled 3% today which is a buying opportunity.
Today they reported a modest top and bottom line beat, earnings forecast was a little light though the revenue forecast was solid. They have expanded well beyond jeans, but are hit by Trump's tariffs. Things will run their course.
They delivered a solid quarter, sales strong with an earnings beat thanks to higher than expected margins. Guidance is unchanged. Shares are down 45% from highs last June, but showed life at today's close.
It reported after the bell superb 12% YOY sales growth, strength in the Americas, Europe and direct to consumer channels. They beat gross margins, but due to higher expenses, they delivered a modest earnings beat. Their full-year forecast was a little mixed, but overall good.
They just reported a minor sales miss but an earnings beat and cut their full-year revenue forecast though asserted their earnings would meet the midpoint of previous guidance. Europe and direct-to-consumer are strong, but Asian and America are weaker.
Could benefit from the weight-loss drug boom, because those who take those drugs will need need jeans. But the company reported a weak quarter and cut guidance.
Today, it reported an earnings and sales beat, but shares fell 16%. They lowered their full-year gross margin outlook a lot, but didn't touch earnings guidance. Also, they forecast a sales decline around 8-12% this quarter.
(A Top Pick Jul 12/22, Down 11.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LEVI has triggered its stop at $15. To remain disciplined, we recommend covering the position at this time.
(A Top Pick Jul 12/22, Down 2.1%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with LEVI is progressing well. We now recommend to trail up the stop from $13 to $15.
Stockchase Research Editor: Michael O'Reilly With net sales up almost 15% over the year, this iconic global brand is a TOP PICK. Recently reported earnings beat expectations by over 25% and support a stellar 40% ROE. It trades at 12x earnings, compared to peers at 30x. Management guidance remains online and projects growth continuing through the balance of the year. We recommend a stop loss at $13, looking to achieve $27 -- upside potential over 55%. Yield 2.4% (Analysts’ price target is $27.09)
Retail is on fire and has more room to run. Levis reported a blow out quarter over a month ago. Also, it has a huge sustainability operation by using fewer resources and generating less waste.