50% OFF
MarketBeat All Access
Get 30 days free. Save 50% your first year.
  •  days
  •  Hours
  •  Minutes
  •  Seconds
×
QQQ   279.94 (+1.99%)
AAPL   149.84 (-1.27%)
MSFT   241.07 (+1.97%)
META   141.61 (+5.36%)
GOOGL   100.05 (+2.62%)
AMZN   118.01 (+3.15%)
TSLA   287.81 (+1.72%)
NVDA   127.36 (+2.60%)
NIO   17.33 (+0.81%)
BABA   80.99 (+4.01%)
AMD   68.36 (+1.77%)
T   15.83 (+0.64%)
MU   51.00 (+0.83%)
CGC   3.04 (+6.29%)
F   12.18 (+2.27%)
GE   64.46 (-0.02%)
DIS   99.40 (+3.70%)
AMC   7.67 (+2.95%)
PYPL   91.12 (+6.26%)
PFE   44.43 (+0.77%)
NFLX   245.20 (+9.29%)
QQQ   279.94 (+1.99%)
AAPL   149.84 (-1.27%)
MSFT   241.07 (+1.97%)
META   141.61 (+5.36%)
GOOGL   100.05 (+2.62%)
AMZN   118.01 (+3.15%)
TSLA   287.81 (+1.72%)
NVDA   127.36 (+2.60%)
NIO   17.33 (+0.81%)
BABA   80.99 (+4.01%)
AMD   68.36 (+1.77%)
T   15.83 (+0.64%)
MU   51.00 (+0.83%)
CGC   3.04 (+6.29%)
F   12.18 (+2.27%)
GE   64.46 (-0.02%)
DIS   99.40 (+3.70%)
AMC   7.67 (+2.95%)
PYPL   91.12 (+6.26%)
PFE   44.43 (+0.77%)
NFLX   245.20 (+9.29%)
QQQ   279.94 (+1.99%)
AAPL   149.84 (-1.27%)
MSFT   241.07 (+1.97%)
META   141.61 (+5.36%)
GOOGL   100.05 (+2.62%)
AMZN   118.01 (+3.15%)
TSLA   287.81 (+1.72%)
NVDA   127.36 (+2.60%)
NIO   17.33 (+0.81%)
BABA   80.99 (+4.01%)
AMD   68.36 (+1.77%)
T   15.83 (+0.64%)
MU   51.00 (+0.83%)
CGC   3.04 (+6.29%)
F   12.18 (+2.27%)
GE   64.46 (-0.02%)
DIS   99.40 (+3.70%)
AMC   7.67 (+2.95%)
PYPL   91.12 (+6.26%)
PFE   44.43 (+0.77%)
NFLX   245.20 (+9.29%)
QQQ   279.94 (+1.99%)
AAPL   149.84 (-1.27%)
MSFT   241.07 (+1.97%)
META   141.61 (+5.36%)
GOOGL   100.05 (+2.62%)
AMZN   118.01 (+3.15%)
TSLA   287.81 (+1.72%)
NVDA   127.36 (+2.60%)
NIO   17.33 (+0.81%)
BABA   80.99 (+4.01%)
AMD   68.36 (+1.77%)
T   15.83 (+0.64%)
MU   51.00 (+0.83%)
CGC   3.04 (+6.29%)
F   12.18 (+2.27%)
GE   64.46 (-0.02%)
DIS   99.40 (+3.70%)
AMC   7.67 (+2.95%)
PYPL   91.12 (+6.26%)
PFE   44.43 (+0.77%)
NFLX   245.20 (+9.29%)

Levi Strauss Proves Resilient For Dividend Investors 

Levi Strauss Is A Good Fit For Dividend Investors 

Levi Strauss (NYSE: LEVI) proved the power of omnichannel business and the shift of direct-to-consumer sales once again. The company not only managed to outperform in Q2 but it reaffirmed its guidance which is about the best we can expect for this reporting season. The takeaway is this iconic brand is still firing on all cylinders and delivering results for shareholders. The Q2 results included a hefty increase to the dividend that has the yield above 2.5% and we think it will get increased again. 

"Although the operating environment remains dynamic, the diversity of our business is providing the resilience and flexibility needed to drive solid financial results in fiscal year 2022, while progressing us on our path to achieve net revenues of $9 to $10 billion and adjusted EBIT margin of 15% by fiscal year 2027." said Harmit Singh, CFO.

Levi Strauss Beats And Raises, Writes Off Russian Biz

Levi Strauss had a great quarter driven by demand in all geographies and channels, even excluding its former business in Russia. The company reported $1.47 billion in net sales for a gain of 14.8% over last year and last year was a good year too. The revenue beat the Marketbeat.com consensus by 280 basis points as well, and is accompanied by solid margins as well. On a segment basis, DTC grew by 16% led by company-owned stores. Wholesale grew by 15% and Digital put in a strong showing as well. eCommerce sales grew by 3% on top of last year’s 20% gain and grew to 7% of the net while DTC came in at 30% of the net. 

Moving on to the margin, the margin news is a little mixed but completely offset by mitigating factors. The gross margin contracted by 90 basis points due to acquisition costs and the full impairment of Russia but the AGM came in flat. Moving down to the operating margin, the operating margin contracted due to the war in Ukraine but on an adjusted basis widened by an equally large amount. This left the GAAP earnings down by 25% versus last year but the adjusted EPS is up more than 25% and $0.06 better than expected and the guidance is favorable too. 


The guidance for 2022 revenue and earnings is in-line with the analyst's consensus which isn’t saying much but it implies about 12% of YOY growth. This is huge in a world where the outlook for growth is in serious peril and great news for the dividend. The company just raised the dividend by 20%, in fact, proving the strength of the cash flow. In regard to the balance sheet, the company is carrying a little bit of debt and we do mean a little bit. The leverage ratio of 1.1X is down from 2.0X last year and it may get smaller. 

The Analysts Like The Fit Of Levi Strauss 

The analysts are bullish on Levi Strauss but the price targets have started coming down. JPMorgan Chase is the first to issue a price target reduction to $22 from $27 compared to the consensus of $30. The consensus is down versus a peak set earlier this year but relatively stable in the last 30 days and up from last year. JPMorgan’s target is about 35% above the current price action, however, and also above a key technical level. 

Turning to the chart, the stock looks extended at the current levels and ready for a rebound. The next major point of resistance is at the key level of $19.50 which is coincident with the short-term moving average. If the market can get above that level we see it drifting up into the $22 to $30 range by the end of the year, depending on how economic and earnings data plays out. If not, this stock could be range-bound at these low levels. 

Levi Strauss Proves Resilient For Dividend Investors 

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Levi Strauss & Co. (LEVI)
2.6858 of 5 stars
$16.23+1.8%2.96%11.27Moderate Buy$26.27
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Levi Strauss & Co. right now?

Before you consider Levi Strauss & Co., you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Levi Strauss & Co. wasn't on the list.

While Levi Strauss & Co. currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.
Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastFed Raises Rates: 3 Stocks to Watch Newmont Mining, Walmart, AMC

Axel Merk, President and CIO of Merk Investments has three very different stocks he frames within the current market and economic conditions.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.