A market analysis posted online yesterday, October 3, 2021, by Nasdaq affirmed that Levi Strauss and Company would most likely announce positive results in its earnings report for the third quarter of this year. This forecast comes amid the various headwinds that the apparel manufacturer has encountered over the past year.
We think this US stock market news about Levi Strauss and Company is interesting and relevant to share with our readers. We believe they will understand how publicly listed companies can thrive despite the different external factors that inhibit their annual growth.
According to the report posted online by New York City-based stock exchange, the Nasdaq Stock Market, which delivers the latest stock market news, information, quotes, data analysis reports, and a general market landscape overview, Levi Strauss will declare its latest earnings results in just a few days from now.
With this development, the analysis indicated that the jeans specialist is possible to disclose strong demand. This positive perspective is attributed to a high consumer appetite for premium apparel offerings and strong consumer spending.
Nonetheless, similar to Nike and other apparel giants, stock market analysts believe Levi Strauss possibly faced mounting supply chain problems and massive cost spikes. These dilemmas are the likely threats to its profitability and sales growth.
Additionally, the apparel distributor, which sells t-shirts, jeans, jackets, casual pants, and tops, may also had trouble with soaring expenses and manufacturing and transportation challenges creating supply bottlenecks.
Nevertheless, several factors serve as tailwinds that Levi Strauss can benefit from, which are booming digital sales and more store openings. The San Francisco, California-headquartered company’s management also mentioned declining COVID-19 case rates as a huge factor that supported the business through late July of this year.
As for the sales trends, the last quarterly update of Levi Strauss presented zero signs of a growth slowdown. In the second quarter of this year, sales jumped 156 percent, compared to the COVID-19 pandemic slump last year.
Furthermore, the apparel company’s revenue set a new record in the second quarter of 2021, despite the reality that approximately 17 percent of Levi Strauss’s retailing locations, mostly in Europe, were closed for the quarter’s part because of the new COVID-19 restrictions.
The jeans retailer offset that headwind with higher traffic at its other venues and booming digital sales. We believe Levi Strauss investors should feel calm as they await the Levi Strauss and Company’s earnings report for this year’s third quarter.
After all, we think the company will have another robust quarter this time around, with sales possibly increasing 36 percent year over year to US$1.5 billion, per our research. We also believe that the COVID-19 pandemic and the potential supply chain and cost dilemmas could have brought a growth downgrade to the company.
However, with the latest figures and trends we learned about Levi Strauss’s operations over the past year, we believe that its earnings report will consist of strong and optimistic insights.
After all, despite the various problems, including the COVID-19 global healthcare crisis, consumers still gravitate toward Levi Strauss’s premium-apparel products, and sales get boosted thanks to the prevalence of online shopping.