Levi's: share slumps 15% after disappointing sales

(CercleFinance.com) - Levi's announced posted better-than-expected results for the second consecutive quarter, but lower-than-expected sales sent its share price tumbling on Thursday in New York.


The jeans manufacturer posted EPS of $0.16 for Q2, ended in May, compared with $0.04 a year earlier and a consensus target of only $0.11. Gross margin rose by 1.8% to 60.5%, while FCF from operating activities stood at 60.5%.

The coupon paid by the San Francisco-based group will increase by 8% to $0.13.

The main disappointment was that quarterly sales - up 8% to $1.40bn - missed the market consensus of $1.45bn.

In another disappointment, the company confirmed that it was targeting a 1% to 3% increase in net sales for the current fiscal year, a timid forecast for a group expected to accelerate its growth over the next few years.

Following this publication, Levi's shares closed down around 15% on Thursday on Wall Street.


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