What's Going On With Levi Strauss Stock After Earnings?

Levi Strauss & Co LEVI shares are trading lower Thursday after the company posted worse-than-expected third-quarter revenue on Wednesday.

The Details:

Levi Strauss reported quarterly revenue of $1.516 billion, below consensus estimate of $1.55 billion, due in part to the exit of its Denizen business. The company also revealed it’s considering a sale of its Dockers brand. 

"We are narrowing our focus to realize the full potential of the Levi's brand as well as accelerate Beyond Yoga. Accordingly, we are undertaking an evaluation of strategic alternatives for the global Dockers business," CEO Michelle Gass said during a post-earnings call.

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Levi Strauss issued fiscal 2024 earnings guidance with its midpoint below estimates. The company expects earnings of between $1.17 and $1.27 per share for the year, versus the $1.25 estimate. 

Stifel analyst Drew Crum maintained a Buy rating and lowered the price target from $28 to $25 following the print. Telsey Advisory Group maintained its Outperform rating and $26 price target.

Should I Sell My LEVI Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of Levi Strauss have gained 48.15% year to date. This compares to the average annual return of -3.24%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Levi Strauss stock currently has an RSI of 56.58, indicating neutral conditions.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

LEVI Price Action: According to Benzinga Pro, Levi Strauss & Co shares are down 7.22% at $19.54 at the time of publication Thursday.

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