Why Levi Strauss Stock Dropped 20% Last Month
Shares of apparel company Levi Strauss (NYSE: LEVI) dropped 19.7% in June, according to data from S&P Global Market Intelligence. In short, the analyst community didn't like the company's financial report for its fiscal second quarter of 2024, which came out on June 26. And it's kind of hard to explain, considering the Q2 numbers were better than what analysts had expected.
For its part, Levi Strauss' management gives guidance for the year, leaving analysts to provide their best estimates for the quarter. The company reported Q2 net revenue of $1.4 billion and diluted earnings per share (EPS) of $0.04, which surpassed analysts' estimates. But they were nevertheless disappointed, because Levi Strauss didn't raise its full-year financial guidance. In other words, the company's Q2 financials were ahead of schedule by the analysts' standards. But from management's perspective, they were simply on schedule. When reality set in, disappointment and downgrades were the result.
Yes, Levi Strauss disappointed investors by beating expectations. Only on Wall Street can that statement make sense. However, in fairness, there is some additional helpful context.
Source Fool.com
