Levi Strauss & Co: Facing Challenges Amidst Falling Sales and Higher Costs

levi strauss stock

Levi Strauss & Co Class A Stock Forecast:

According to the forecast of 10 analysts, the average target price for Levi Strauss & Co Class A stock over the next 12 months is USD 15.25. The average analyst rating is not available. Stock Target Advisor’s analysis of the stock is neutral, based on 6 positive signals and 6 negative signals. The last closing price of Levi Strauss & Co Class A stock was USD 14.23. The stock price has experienced a -1.79% change over the past week, a +2.23% change over the past month, and a -9.94% change over the last year.

Levi Strauss & Co. News:

Levi Strauss & Co., the iconic denim clothing maker, has recently announced a downward revision of its annual profit forecast, citing increased costs and declining sales at its wholesale channels in North America. The company’s struggles come as it grapples with a competitive market and changing consumer preferences, leading to its steepest quarterly drop in net revenues since Q1 of 2021.

For the second quarter that ended on May 28, Levi’s experienced a concerning 9% decline in net revenues. This drop highlights the challenges the company is facing, particularly in its key North American market, where sales at its wholesale channels have been dwindling. This trend has undoubtedly put pressure on Levi’s profit margins, leading to the revision of its annual profit forecast.

The adjusted profit forecast for 2023 now stands between $1.10 and $1.20 per share, compared to the previous projection of $1.30 to $1.40 per share. This downward adjustment signals the financial strain the company is experiencing due to various factors, including rising costs. Higher input costs, such as raw materials and transportation expenses, have been an ongoing issue for the apparel industry, and Levi’s is no exception.

Analysts Coverage Change:

  • Telsey Advisory Group maintains an “Outperform” rating for Levi Strauss and lowers their target price to $18 from $24.
  • Stifel Nicolaus maintains a “Buy” rating for Levi Strauss (LEVI:NYE) and lowers their target price to $17 from $19.
  • Wells Fargo & Company maintains an “Overweight” rating and lowers their target price to $15 from $18.

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