Levi Strauss & Co. (LEVI) released its Q3 2019 earnings report on October 8, beating consensus estimates for revenue and EPS. Despite this beat and the broader market positive tone, following recent progress in trade negotiations between U.S. and China, Levi's stock price has dropped more than 10% in the following days after the release, as weakness on U.S. wholesale business has weighed on the sentiment surrounding the outlook for the stock.
We remain cautiously optimistic on Levi Strauss given positive developments on direct-to-consumer, international expansion, category diversification and the slight undervaluation compared