About
Information is our nourishment. Say hello to the data gods.
Meet Our Team
Consumers speak. We listen, analyze, and dig deep. You win!
Learn More
Solutions
Get targeted insights into industry trends with our quarterly sector reports, so you can predict the future and stay a step ahead.
Learn More
Receive alerts and reports to power your fund management. Partner with our team of analysts to take your research to the next level.
Learn More
Plug our consumer-demand-data directly into your client-facing software, tools, and platform or work with us to create custom, high-value content your customers will love.
Learn More
Testing our data is like jumping in a time machine to compare market gains and losses against reliable and annotated historical data.
Learn More
Track specific tickers, receive alerts, and watch sector-specific trends. Drill down on individual stocks and see where consumer sentiment aligned with gains and losses in trading.
Learn More
Who We Serve
LikeFolio is your real-time focus group keeping you connected to consumers and giving you a critical edge over your competition.
Learn More
LikeFolio is your research secret weapon to sniff out game-changing shifts in the market before they happen.
Learn More
LikeFolio is source of quantitative data based upon real consumer insights to power your investment engine.
Learn More
LikeFolio is your content pipeline positioning your tool as an indispensable resource to your customers.
Learn More
LikeFolio has partnered with Tradesmith to build Derby City Insights and bring our powerful insights engine to private investors.
Learn More

Oh my God, Becky -- look at that stock.

January 25, 2023

Last quarter, Levi Strauss (LEVI) shares plunged -9% after the company's Q3 report. 


Trouble in denim paradise? 


Not so fast. 


The cause of the earnings sell-off was related to profit


Levi adjusted its EPS guidance to the downside -- $1.44-$1.49 in Q4 vs. $1.50-$1.56 -- in response to the rising cost of goods.


Here's why we're not counting LEVI out...and why the company could be poised for a major surprise:


Last fall, the company received organized consumer backlash in response to the quality of its products being sold in India. 


Since then, Levi Brand Happiness is recovering overseas. 

Last quarter, Levi's Asian segment excluding China grew by +68%, led by strength in India. 


It's positive to see quality-related improvements in the Levi brand, especially among an expanding international market.


Most importantly -- consumer demand is exploding. 


LEVI purchase intent mentions have increased by +63% YoY, driven by renewed brand interest among young consumers thanks to sustainability efforts and a partnership with NFL teams, like the San Francisco 49ers. 


This is notably better vs. demand for retail peers like American Eagle and Abercrombie & Fitch. 

As happiness improves and demand spikes, LEVI gains pricing power. 

In Q3, profits were the company's biggest weakness…

However, strategic pricing increases could offset higher production costs -- and pricing increases become more feasible as the brand becomes more desirable.

Heading into Q4 earnings, we're cautiously optimistic. 

If LEVI can wrangle costs, consumer demand is likely to exceed market expectations.

If costs continue to weigh on LEVI’s 2023 outlook, a dip in share price could prove to be a great opportunity to take a long-term position on this American icon.
Tags: 

Related Posts

Expect strong digital numbers from American Eagle (AEO)

Expect strong digital numbers from AEO AEO shares are trading […]

Read More
American Eagle (AEO) is Soaring Higher

American Eagle (AEO) is Soaring Higher In the earnings preview LikeFolio put […]

Read More
Consumers are Stocking Up on New Clothes

Consumers are Stocking Up on New Clothes LikeFolio data confirms […]

Read More
1 2 3

Related Posts

Related Reports

KEEP YOUR COMPETITIVE EDGE

Get FREE insights in your inbox every week with the Daily Drop.

About LikeFolio

LikeFolio analyzes social media data to accurately predict shifts in consumer behavior. We sell data and insights to professional investors, corporate research teams, and software providers.

Partner Sites

©2022 LikeFolio. All Rights Reserved.
Privacy Policy
|
Terms of Use
LikeFolio userslaptop-phonepie-chartchart-barsselect