Levi Strauss (LEVI.US) stock surged nearly more than 9% after the jeans retailer posted better than expected quarterly figures. Company earned 48 cents per share, easily beating analysts' estimates of 37 cents. Compared to last year's pandemic-hobbled Q3, Levi's earnings increased over 570%. Compared to the more normal year of 2019, earnings were still up a very respectable 57%.
Revenue figures also topped market expectations as easing of pandemic restrictions prompted customers to refresh their wardrobes. Third-quarter revenues jumped 41% to $1.50 billion from $1.06 billion last year. Meanwhile analysts expected revenue of $1.48 billion. E-commerce growth rose 41% from last year, while revenues through all digital channels increased 87%.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app"We delivered a strong quarter with revenue growth versus pre-pandemic 2019 levels, despite a more difficult macro-environment than we expected," said Chip Bergh, president and company's CEO "These results reflect the strength of the Levi's brand, improving momentum in our direct-to-consumer business and the scale and agility of our supply chain network where we have executed against macro-headwinds exceptionally well."
For the current quarter, Levi Strauss expects adjusted earnings in the region from $0.38 to $0.40 per share and revenue growth of 20 to 21%. Analysts currently estimate earnings of $0.39 per share on revenue growth of 22%.
Levi Strauss (LEVI.US) stock launched today's session sharply higher, however buyers failed to break above the local resistance at $26.90 which coincides with upper limit of the descending channel and 200 SMA (red line). Price pulled back slightly and the nearest support lies at $26.20 and is marked by the 38.2 Fibonacci retracement of the last downward wave and previous price reactions. On the other hand, should the break above the aforementioned resistance at $26.90 occur, then upward move may accelerate towards resistance at $27.70 which coincides with 61.8% Fibonacci retracement. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
