Levi Strauss & Co. LEVI is likely to register bottom and top-line growth when it reports fourth-quarter fiscal 2024 earnings on Jan. 29, after the closing bell. The Zacks Consensus Estimate for revenues is $1.72 billion, which indicates a rise of 4.5% from the year-ago quarter’s level.
The consensus estimate for quarterly earnings has been stable over the past 30 days at 47 cents per share and indicates an increase of 6.8% from the year-earlier quarter’s tally.
The company has an average trailing four-quarter earnings surprise of 20.1%. It delivered an earnings surprise of 6.5% in the last reported quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Factors Likely to Influence LEVI’s Q4 Results
Levi Strauss’ quarterly performance is likely to have benefited from omnichannel initiatives and brand strength, including jeanswear. The company has been strengthening its omni capabilities including Buy Online, Pick-up in Store, line-queuing, same-day delivery, mobile checkout and return capabilities, including contactless returns.
LEVI has been focused on elevating brands, investing in digital tools and capabilities and pacing up efforts to diversify across geographies, product categories and distribution channels. As part of its ongoing global productivity effort, Project Fuel, the company is on track to transition from a mainly owned-and-operated distribution and logistics network in the United States and Europe to a balanced owned and third-party logistics provider. Such strengths, along with its solid direct-to-consumer business, are likely to have bolstered the quarterly performance.
The Zacks Consensus Estimate for quarterly revenues is currently pegged at $936 million for Americas, $427 million for Europe and $262 million for Asia, indicating respective increases of 5.4%, 12.7%, and flat year over year.
However, a challenging operating backdrop, including supply-chain disruptions, inflationary pressures and foreign currency translations, is likely to have been a concern. These headwinds, coupled with deleveraged selling, general and administrative costs, are expected to have somewhat weighed on the company’s profitability.
What the Zacks Model Predicts
Our proven model doesn’t conclusively predict an earnings beat for Levi Strauss this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Levi Strauss & Co. Price and EPS Surprise
Levi Strauss & Co. price-eps-surprise | Levi Strauss & Co. Quote
Levi Strauss has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Valuation Picture of LEVI Stock
From a valuation perspective, Levi Strauss offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings ratio of 12.69x, which is below the five-year high of 141.93x and the Textile - Apparel industry’s average of 19.31x, the stock offers compelling value for investors seeking exposure to the sector. Additionally, the current Value Score of B adds weight to this optimistic view.
The recent market movements show that LEVI’s shares have lost 2.8% in the past six months against the industry's 26.1% growth.
Stocks With the Favorable Combination
Here are some companies, which according to our model, have the right combination of elements to beat on earnings:
Deckers DECK currently has an Earnings ESP of +6.84% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is likely to register a bottom-line increase when it reports third-quarter fiscal 2025 results. The Zacks Consensus Estimate for quarterly EPS of $2.56 indicates a rise of 2% from the year-ago quarter.
Deckers’ top line is expected to rise year over year. The consensus estimate for quarterly revenues is pegged at $1.7 billion, which indicates an improvement of 9.1% from the figure in the prior-year quarter. DECK has a trailing four-quarter earnings surprise of 41.1%, on average.
Abercrombie ANF currently has an Earnings ESP of +0.48% and a Zacks Rank of 1.
The company is likely to register a bottom-line rise when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly EPS of $3.51 indicates an increase of 18.2% from the year-ago quarter’s level.
Abercrombie’s top line is expected to rise year over year. The consensus estimate for quarterly revenues is pegged at $1.6 billion, which indicates an improvement of 7.7% from the figure in the prior-year quarter. ANF has a trailing four-quarter earnings surprise of 14.8%, on average.
American Eagle Outfitters AEO currently has an Earnings ESP of +0.75% and a Zacks Rank of 3. The company is likely to register a decrease in the bottom line when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly EPS of 49 cents indicates a dip of 19.7% from the year-ago number.
American Eagle Outfitters’ top line is expected to decrease year over year. The consensus estimate for quarterly revenues is pegged at $1.6 billion, which implies a drop of 4% from the prior-year quarter. AEO has a trailing four-quarter earnings surprise of 12.6%, on average.
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Free: See Our Top Stock And 4 Runners UpAbercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
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