4 Themes to Track When Levi Strauss Reports Earnings
Global denim powerhouse Levi Strauss (NYSE: LEVI) is on deck to report third-quarter fiscal 2019 earnings on Tuesday after the markets conclude business. While shares of the consumer staples stalwart are trading roughly 14% above their March 21 initial public offering (IPO) price of $17, the LEVI symbol has traced a descent since the company released a disappointing second-quarter report in July. Let's walk through four themes investors should follow to make sense of the manufacturer's upcoming earnings press release -- and its bearing on stock price.
Since its founding 165 years ago, Levi's has reliably achieved sales growth through the sale of one product: men's bottoms (i.e., men's jeans). Men's bottoms are considered a pillar of the company's "core business" strategy by management. Yet extending beyond the impact of this product group is also a vital priority for Levi Strauss following its return to the public markets this year.
The iconic jeans manufacturer is plowing resources into men's tops, women's jeans and tops, and accessories to nurture faster-growing revenue streams. Impressively, sales in the women's category improved 16% year over year last quarter, and management noted that this completes 16 consecutive quarters of expansion in women's wear -- the last 10 quarters have each notched double-digit growth.
Source Fool.com
