LEVI Earnings Prediction
The chart below shows how LEVI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LEVI sees a +1.17% change in stock price 10 days leading up to the earnings, and a -0.65% change 10 days following the report. On the earnings day itself, the stock moves by -2.62%. This data can give you a slight idea of what to expect for the next quarter's release.
LEVI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.84B
12.02%
21.29%
Gross Margin
61.26%
5.93%
2.03%
Operating Margin
13.42%
36.52%
23.92%
Net Margin
9.93%
28.46%
630.15%
EPS
0.46
43.75%
820.00%
No Data Available
LEVI Earnings Analysis
Levi Strauss & Co Corporation (LEVI.N) Earnings Conference Call
Positive
Net Revenue Increase: In Q4, net revenues increased 12% on a reported basis, with organic net revenue growth of 8%, excluding the impacts of divested businesses and foreign exchange headwinds.
Record Gross Margin Achievement: The Levi's brand achieved an all-time record gross margin of 60%, contributing to a 120 basis points adjusted EBIT margin expansion and a double-digit increase in earnings per share to $1.25 for the year.
DTC Business Growth: The global direct-to-consumer (DTC) business grew 14% in Q4, marking the 11th consecutive quarter of positive comps, with DTC representing 47% of total global net revenues, up 4 points from the previous year.
Women's Business Growth: The women's business grew 12% in Q4, with nearly $2 billion in sales for the full year, solidifying Levi's position as the number one women's denim brand in the U.S. on a 12-month basis.
Shareholder Returns Increase: For the full year, $289 million was returned to shareholders, a 45% increase from the prior year, including $199 million in dividends and $90 million in share repurchases.
Negative
Asia Operating Margin Decline: Operating margin in Asia contracted 360 basis points to 8.4% due to losses in the China business and increased spending in DTC expansion and advertising.
Revenue Decline Forecast: The company expects reported net revenues to decline by 1% to 2% in 2025, primarily due to a 250 basis point drag from foreign exchange and a 300 basis point headwind from the exit of Denizen and Footwear.
SG&A Expense Increase: Adjusted SG&A expenses increased 17% to $880 million in Q4, driven by higher sales, increased advertising costs, and distribution expenses related to the transition of distribution centers.
Tax Rate Normalization: The effective tax rate is expected to normalize at approximately 23% in 2025, reflecting the expiration of foreign tax credits that previously benefited the company.
Wholesale Channel Outlook: The wholesale channel is expected to remain flat for the full year on an organic basis, indicating cautious outlook despite recent growth.
LEVI FAQs
How does LEVI typically perform around its earnings report dates?
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LEVI Earning Call Sentiment
Earnings call transcript: Levi Strauss Q4 2024 misses EPS forecast, stock falls
LEVI.N
3.95%Positive
The earnings call highlights strong financial performance, with record gross margins, increased EPS, and significant shareholder returns. The Q&A section reveals some concerns about SG&A expenses, but management's confidence in future alignment alleviates these worries. Strong DTC growth and international expansion further support a positive outlook. Despite some unclear responses, the overall sentiment is positive, with potential for stock price increase driven by robust financials and strategic initiatives.
