LEVI - Levi Strauss Stock: Trend-Following Signal Reversal is On | Benzinga
Levi Strauss (NYSE: LEVI) exemplifies how iconic branding, sound management, and forward-looking strategy can drive shareholder value. The company struggled with shifting consumer demands, inventory issues, and structural challenges for the last several years but is coming out of the weeds in fantastic shape.
The Q1 results and guidance affirm an outlook for accelerating improvement and profitability, and the market has noticed. The price action from early 2022 until recently coincided with range-bound trading and bottoming, which is confirmed as a complete reversal today. The market surged 10% on the news, breaking above critical resistance to open a door to a sustained rally that could last for years.
"The structural economics of our business improved in Q1 driven by significant gross margin expansion, disciplined expense controls and efficient working capital management" said Harmit Singh, Chief Financial and Growth Officer of Levi Strauss & Co. "As a result, we are confident in our ability to return the topline to mid-single-digit growth in the second half of this year and are increasing our full-year EPS expectations."
Levi Strauss Will Pivot Back To Growth Soon
Levi Strauss' Q1 results are solid on several levels, including the top and bottom lines and guidance. The company reported a YOY decline of 7.7% but outpaced the consensus by ...