LEVI - Levi Strauss Q2 Results: Strong Earnings Disappointing Guidance (Rating Downgrade)

2024-06-27 07:47:52 ET

Summary

• Investors sold off shares in Levi Strauss following the release of its Q2 results.
• The sell off came despite positive developments with regards to its dividend and earnings.
• Particularly disappointing was the reaffirmation of the earnings guidance following the beat.
• Inmy view, shares were susceptible to a pullback due to the elevated expectationssurrounding denim.
• Atcurrent trading levels, I view shares as adequately priced.

Shares in blue jean retailer, Levi Strauss ( LEVI ), were down about 16% in the after- and pre-market trading hours following the release of its Q2 results that underwhelmed investors with a mixed revenue report and stagnant guidance despite a strong earnings beat....

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