Levi (LEVI, $20.82) shares decline, on soft sales growth outlook
Levi Strauss’ shares tumbled pre-market Wednesday, following the company's warning of a weakening growth of sales in the second half of the year.
The maker of the iconic denim brand reported fiscal second quarter earnings of 7 cents a share, down -65% from the same period last year. Adjusting for some costs, the company earned 17 cents per share, beating the Street consensus estimate of 15 cents per share.
Revenue of $1.312 billion for the quarter also surpassed analysts’ forecasts.
However, Levis CFO Harmit Singh mentioned that the second half sales growth would “moderate relative to the first half, particularly in the United States" .The company expects that the lack of a Black Friday in Q4 will hurt revenue by roughly 100 basis points in the second half.
As for the ongoing trade war, CFO Singh has indicated that the company is prepared to cushion the effect of tariffs over the near term.
LEVI sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for LEVI moved below the 200-day moving average on September 05, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Show more
Notable companies
The most notable companies in this group are Nike (NYSE:NKE), Skechers USA (NYSE:SKX), VF Corp (NYSE:VFC), G-III Apparel Group Ltd (NASDAQ:GIII), Canada Goose Holdings (NYSE:GOOS), Lakeland Industries (NASDAQ:LAKE).
Industry description
Apparel/footwear might be slightly more ‘cyclical’ in the largely non-cyclical category of non-durables. While digital giants like Amazon have been rapidly expanding their presence, traditional clothing/footwear retailers have also been bulking up their online presence in recent years, to milk the burgeoning trend of online shopping among consumers across the globe. The apparel and footwear retail market was valued at around $ 360 billion in 2018, and this figure was expected to reach about $386 billion by 2020 (according to a Statista report). NIKE, Inc, V.F. Corporation and Under Armour, Inc. are some of the companies with the largest U.S. stock market caps in this segment.
Market Cap
The average market capitalization across the Apparel/Footwear Industry is 6.68B. The market cap for tickers in the group ranges from 1.66K to 140.24B. NKE holds the highest valuation in this group at 140.24B. The lowest valued company is SQBGQ at 1.66K.
High and low price notable news
The average weekly price growth across all stocks in the Apparel/Footwear Industry was -3%. For the same Industry, the average monthly price growth was 4%, and the average quarterly price growth was 5%. GIII experienced the highest price growth at 16%, while SKFG experienced the biggest fall at -29%.
Volume
The average weekly volume growth across all stocks in the Apparel/Footwear Industry was -11%. For the same stocks of the Industry, the average monthly volume growth was -28% and the average quarterly volume growth was -19%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 48
P/E Growth Rating: 62
Price Growth Rating: 57
SMR Rating: 63
Profit Risk Rating: 78
Seasonality Score: -9 (-100 ... +100)