Levi Strauss(LEVI), the fashion icon best known for its blue jeans, will release its Fiscal 2022 first-quarter financial results on April 6.
The company reported a solid fiscal fourth quarter, with revenue and earnings beating expectations. Adjusted profits of 0.14 per share increased by 105% year-over-year, while net sales increased 22% year-over-year to $1.7 billion. In addition, net revenues from direct-to-consumer (DTC) climbed by 25% from the year-ago quarter.
The company should continue to generate solid results in the first quarter, thanks to improving retail sales, brand power, and momentum in the direct-to-consumer business. Supply-chain interruptions, on the other hand, could hamper the results.
Q1 Expectations
Experts predict that Levi Strauss will report adjusted earnings of $0.42 per share in the first quarter. The figures show a 23.5% increase on a year-over-year basis.
What’s Ahead?
Levi Strauss stock is viewed positively by investors.
According to TipRanks’ Stock Investors tool, 2.5% of the investors holding portfolios on TipRanks have increased their stake in Levi Strauss stock in the last 30 days.
Besides retail investors, hedge funds have added 176.4K LEVI shares in the last three months.
Wall Street’s Take
Levi Strauss stock commands a Strong Buy consensus rating based on 7 unanimous Buys. As for price targets, the average LEVI stock price forecast of $30.43 implies 54% upside potential from the current levels.
Bottom Line
The stock appears to be a buy ahead of Q1 earnings, with good market sentiment, double-digit upside potential, and an improving retail environment. Furthermore, a strong Q1 earnings announcement may contribute to a stock price increase.
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