Levi Strauss Earnings: LEVI Stock Sinks as Q2 Profit Below Guidance
Levi Strauss (NYSE:LEVI) released its quarterly earnings figures late on Tuesday, amassing mixed results that included revenue that topped expectations and surged year-over-year, yet the company’s net income was down, while also missing Wall Street’s consensus guidance.
The denim jeans maker announced that for its second quarter of its fiscal 2019, it posted net income of $29 million, or 7 cents per share. This marked a 62.3% slide when compared to the company’s profit from the same period a year ago, when it earned $77 million, or 19 cents per share.
When adjusted for one-time items, Levi’s said it brought in a profit of $69 million for the three-month period, 16.9% lower than the company’s adjusted earnings of $83 million from the year-ago quarter. Wall Street was projecting the jeans manufacturer would amass earnings of 8 cents per share, according to data compiled by FactSet.
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The business’ revenue for the quarter increased 5% year-over-year to $1.31 billion from the year-ago total of $1.25 billion. Analysts were calling for Levi Strauss to rake in sales of $1.29 billion, according to the FactSet outlook.
Revenue growth is now slated to be “at the high end of the mid-single digit range” with capital expenditure between $190 million and $200 million, as well as the opening of 100 new stores in fiscal 2019, per the business.
LEVI stock is sinking about 6.2% after the bell on Tuesday following the company’s quarterly earnings results, which were mixed, but the profit decline was enough to take a chunk out of its per-share price. During regular trading hours today, shares had gained 2% by the time Wall Street closed.
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