Denim clothing company Levi’s (NYSE:LEVI) will be reporting earnings tomorrow after the bell. Here’s what to expect.
Last quarter Levi’s reported revenues of $1.64 billion, up 3.4% year on year, missing analyst expectations by 1.2%. It was a weak quarter for the company, with underwhelming earnings guidance for the full year.
Is Levi’s buy or sell heading into the earnings? Read our full analysis here, it’s free.
This quarter analysts are expecting Levi’s’s revenue to decline 8.3% year on year to $1.55 billion, a deceleration on the 6.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St’s revenue estimates four times over the last two years.
Looking at Levi’s’s peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Nike delivered top-line growth of 0.3% year on year, beating analyst estimates by 1.1% and Scholastic reported revenue decline of 0.4% year on year, missing analyst estimates by 1.7%. Nike traded up 3% on the results, and Scholastic was up 7.6%.
Read our full analysis of Nike’s results here and Scholastic’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with the stocks up on average 3% over the last month. Levi’s is up 9.8% during the same time, and is heading into the earnings with analyst price target of $18.2, compared to share price of $20.1.
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