Levi Strauss & Co. LEVI is more likely to register top- and bottom-line progress when it studies second-quarter fiscal 2021 numbers on Jul 8. The Zacks Consensus Estimate for quarterly earnings has been steady at 9 cents over the previous 30 days. In the meantime, the corporate incurred a loss per share of 48 cents within the year-ago quarter. Furthermore, the consensus estimate for quarterly revenues stands at $1,212 million, which signifies a major improve from $498 million reported within the year-ago quarter.
Within the final reported quarter, the corporate delivered an earnings shock of 41.7%. Notably, this attire firm has an earnings shock of 54.5%, on common, for the trailing 4 quarters.
Key Components to Observe
Levi Strauss’ efficiency for the fiscal second quarter is probably to have benefited from the corporate’s omni-channel initiatives and power in manufacturers. The corporate has been growing investments in shops and e-commerce companies for some time now. Its NextGen shops providing digitally-connected expertise are performing effectively. Impressively, it’s also steadily accelerating omni capabilities together with Purchase On-line, Choose-up In Retailer, line-queuing, same-day supply, appointment scheduling and cell checkout. Furthermore, the corporate is piloting in-store options together with contactless returns and self-checkout. Moreover, its wholesale channel is constantly remodeling with a higher share of enterprise in digital, mass, premium and with financially-sound retailers. All these elements might need aided the corporate’s efficiency within the quarter below assessment.
On its final earnings name on Apr 8, administration had projected 24-25% income progress from the year-ago reported determine for the primary half of fiscal 2021. This outlook mirrored income progress of round 140% for the fiscal second quarter. The corporate additionally envisioned adjusted earnings per share of 7-Eight cents for a similar interval, bringing first-half adjusted earnings to 41-42 cents.
Though Levi Strauss has been navigating the impacts of the pandemic for someday now, it had earlier assumed that the shop closures in Europe will persist via mid-Might. Consequently, administration had anticipated the outcomes of operations together with revenues, earnings and money circulate to proceed hurting considerably not less than via the fiscal second quarter.
What the Zacks Mannequin Unveils
Our confirmed mannequin doesn’t conclusively predict an earnings beat for Levi Strauss this time round. The mix of a optimistic Earnings ESP and a Zacks Rank #1 (Sturdy Purchase), 2 (Purchase) or 3 (Maintain) will increase the percentages of an earnings beat. However that’s not the case right here. You’ll be able to uncover one of the best shares to purchase or promote earlier than they’re reported with our Earnings ESP Filter.
Though Levi Strauss at present has a Zacks Rank #2, its Earnings ESP of -14.29% makes shock prediction troublesome.
Shares Poised to Beat Earnings Estimates
Listed here are some corporations that you could be need to take into account as our mannequin reveals that these have the correct mixture of components to beat on earnings:
Abercrombie & Fitch ANF at present has an Earnings ESP of +11.30% and a Zacks Rank of 1. You’ll be able to see the whole listing of right this moment’s Zacks #1 Rank shares right here.
Foot Locker FL has an Earnings ESP of +8.95% and a Zacks Rank of 1 at current.
Boot Barn BOOT has an Earnings ESP of +2.42% and is Zacks #1 Ranked, presently.
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.