Yahoo Finance Deciphering Levi Strauss (LEVI) International Revenue Trends
Did you analyze how Levi Strauss (LEVI) fared in its international operations for the quarter ending February 2024? Given the widespread global presence of this jeans maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Upon examining LEVI's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
The recent quarter saw the company's total revenue reaching $1.56 billion, marking a decline of 7.8% from the prior-year quarter. Next, we'll examine the breakdown of LEVI's revenue from abroad to comprehend the significance of its international presence.
A Dive into LEVI's International Revenue Trends
Europe generated $423 million in revenues for the company in the last quarter, constituting 27.2% of the total. This represented a surprise of +2.1% compared to the $414.29 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe accounted for $379 million (23.1%), and in the year-ago quarter, it contributed $455.1 million (27%) to the total revenue.
During the quarter, Asia contributed $289 million in revenue, making up 18.6% of the total revenue. When compared to the consensus estimate of $295.18 million, this meant a surprise of -2.09%. Looking back, Asia contributed $262 million, or 16%, in the previous quarter, and $289.5 million, or 17.1%, in the same quarter of the previous year.
International Market Revenue Projections
Wall Street analysts expect Levi Strauss to report a total revenue of $1.44 billion in the current fiscal quarter, which suggests an increase of 8% from the prior-year quarter. Revenue shares from Europe and Asia are predicted to be 24.8% and 18.8%, corresponding to amounts of $357.76 million and $270.88 million, respectively.
For the entire year, the company's total revenue is forecasted to be $6.36 billion, which is an improvement of 2.9% from the previous year. The revenue contributions from different regions are expected as follows: Europe will contribute 24.9% ($1.58 billion) and Asia 17.6% ($1.12 billion) to the total revenue.
In Conclusion
Levi Strauss' reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short -term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
At present, Levi Strauss holds a Zacks Rank #3 (Hold). This ranking implies that its near-term performance might mirror the overall market movement. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Review of Levi Strauss' Recent Stock Market Performance
Over the preceding four weeks, the stock's value has appreciated by 12.8%, against an upturn of 2.6% in the Zacks S&P 500 composite. In parallel, the Zacks Retail-Wholesale sector, which counts Levi Strauss among its entities, has appreciated by 1.1%. Over the past three months, the company's shares have seen an increase of 29.3% versus the S&P 500's 11.2% increase. The sector overall has witnessed an increase of 12.4% over the same period.
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Levi Strauss & Co. (LEVI) : Free Stock Analysis Report
