Levi Strauss is scheduled to report earnings for the fourth quarter after the market close Thursday. Here’s what you need to know:
PROFIT: Levi Strauss is expected to post a fourth-quarter net profit of $168 million, or 42 cents a share, according to FactSet. This compares with a reported net profit of $150.6 million, or 38 cents a share, for the same period a year earlier.
ADJUSTED PROFIT: Stripping out one-time items, the jeans maker’s earnings per share are projected to be 43 cents, according to FactSet.
SALES: Levi quarterly sales are forecast to rise to $1.66 billion, according to FactSet. This compares with reported sales of $1.59 billion for the year-ago period and $1.51 billion for the third quarter.
WHAT TO WATCH:
–Levi’s regional performance and inventory position will be key to investors. The company, which recently named Michelle Gass as president, is undergoing a review of its operating model as it deals with lower sales in North America and Europe, and benefits from stronger sales in Asia–where sales grew 12% in the latest quarter.
–Watch closely Levi’s wholesale performance, as its direct-to-consumer business is expected to keep seeing growth. Analysts at Citi see some risk that the company will again have to implement price decreases in its wholesale channel to try to revert a negative sales trend.
–Look for comments about Levi subsidiary Beyond Yoga’s strategic direction after the lifestyle brand announced a leadership shakeup last week. Nancy Green, former CEO and president of Athleta, is succeeding Beyond Yoga co-founder Michelle Wahler as CEO, who is stepping down. Beyond Yoga’s chief operations officer and finance chief, Jesse Adams, is also stepping down.