Levi Strauss ( NYSE: LEVI ) rattled the apparel sector with an earnings report that included consensus misses across the board and a guide-down.
On Wall Street, Wells Fargo said LEVI's 43% jump in inventory also looks like an overhang that bears will poke at. Growing near-term headwinds and additional uncertainty around the direction of the U.S. consumer is seen keeping multiple expansion on pause for now for LEVI.
Investors are taking the report as a potential sign of a rough earnings season with apparel sellers, especially after LEVI management warned in trends in Europe during the earnings call.
Notable decliners on Friday included Kontoor Brands ( KTB ) -7.05% , Hanesbrands ( HBI ) -3.66% , Canada Goose ( GOOS ) -3.33% , Capri Holdings ( CPRI ) -2.55% , PVH Corporation ( PVH ) -2.22% , and Ralph Lauren ( RL ) -2.19% .
Dig further into the LEVI earnings report or read the earnings call transcript.
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Levi Strauss earnings miss sends apparel stocks lower