Apparel stores are facing severe distress in the short term related to efforts to slow the coronavirus pandemic. Recent data from the U.S. Department of Commerce showed that clothing and clothing accessories retail sales in April were down 89.3% year over year. This will affect Levi Strauss (NYSE: LEVI), for which Wall Street analysts are currently predicting sales to be cut in half year over year for the May-ending fiscal second quarter.
The markets are always looking forward and pricing stocks accordingly. Levi's stock price is down almost 27% year to date, as investors discount a bad year ahead for the top denim brand. Analysts currently expect full-year sales to be down 15% in fiscal 2020 over the previous year. But with the shares trading at just 11 times the fiscal 2019 earnings level, is the stock a buy at these depressed levels?
Image source: Levi Strauss.
Source Fool.com