Shares of denim clothing company Levi's (NYSE:LEVI)
fell 13.2% in the afternoon session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%. From clothing brands and electronics makers to the e-commerce sites that move their goods, companies built on global supply chains took the biggest hit.
Stocks with heavy exposure to Asia were especially hard-hit, as the new tariffs threatened the growth and profits of firms with factories in the region. Vietnam, central to many companies' production plans, faced a 46% tariff. Cambodia and Indonesia were also in the crosshairs, with tariff rates of 49% and 32%. These measures could significantly erode the competitiveness of goods produced in those regions. For example, reduced production volumes would negatively affect the sales growth of all companies benefiting from these manufacturing hubs.
Levi's is set to release its Q1 FY25 earnings on April 7, with analysts expecting EPS growth to $0.28. Revenue is projected to decline 1.3% YoY to $1.537 billion. Despite FX headwinds, LEVI remains well-positioned for long-term growth.
Levi's has gotten torched over the last six months - since September 2024, its stock price has dropped 23.3% to $16.01 per share. This may have investors wondering how to approach the situation.
Most consumer discretionary businesses succeed or fail based on the broader economy. Lately, it seems like demand trends have worked in their favor as the industry has returned 8.1% over the past six months,
similar to the S&P 500.
Denim clothing company Levi's (NYSE:LEVI) beat Wall Street’s revenue expectations in Q4 CY2024, with sales up 12% year on year to $1.84 billion. Its non-GAAP profit of $0.50 per share was 3.7% above analysts’ consensus estimates.
Levi Strauss shares are down in premarket trading after the company issued a weaker FY25 outlook, projecting revenue declines of 1% to 2%. Levi reported strong Q4 results.
Over the past six months, Levi’s stock price fell to $17.31. Shareholders have lost 6.3% of their capital, which is disappointing considering the S&P 500 has climbed by 7.7%. This may have investors wondering how to approach the situation.
Let’s dig into the relative performance of VF Corp (NYSE:VFC) and its peers as we unravel the now-completed Q3 apparel and accessories earnings season.
Looking back on apparel and accessories stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Carter's (NYSE:CRI) and its peers.
As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at apparel and accessories stocks, starting with Levi's (NYSE:LEVI).
