Levi Strauss stock soars 20% on earnings beat as Beyoncé's shoutout drives hype
AP Photo/Richard Drew
- Levi Strauss stock soared as much as 20% on Thursday after the company reported strong 1st quarter earnings.
- "Denim is having a moment," Levi Strauss CEO Michelle Gass said on the company's earnings call.
- Levi's success comes amid a new song release from Beyonce called "Levii's Jeans."
Levi Strauss stock surged as much as 20% on Thursday after the company reported solid first quarter earnings results and enjoys added exposure thanks to a new song from Beyoncé.
While the jeans maker said sales fell about 8% in the first quarter compared to last year, recent cost-cutting measures helped drive a better than expected profit.
Here were the key numbers:
- Revenue: $1.56 billion, versus analyst estimates of $1.55 billion
- Adjusted earnings per share: $0.26, versus analyst estimates of $0.21
The company raised its full-year 2024 outlook for adjusted earnings per share to a range of $1.17 to $1.27, slightly above its prior guidance of $1.15 to $1.25.
"I would just say that denim is having a moment and the Levi's brand is having a powerful moment around the world," Levi Strauss CEO Michelle Gass said on the company's earnings call.
The company said the introduction of new products like denim skirts and non-denim pants helped boost sales. The added exposure to the company driven by Beyonce's new "Levii's Jeans" song probably isn't hurting sales trends either.
"One of the things that really is significant about the Levi's brand and we place a lot of emphasis and investment is making sure that Levi's brand remains in the center of culture. And I don't think there's any better evidence or proof point than having someone like Beyonce, who is a culture shaper, to actually name a song after us," Gass said in response to an analyst question on whether Beyoncé's new song has led to a sales boost.
Bloomberg Intelligence senior industry analyst Mary Ross Gilbert said in a note on Wednesday that Beyoncé's new song, which is a top 20 song on Apple Music's top 100 USA playlist, "could also provide an added boost to sales."
In recognition of the song, Levi Strauss changed its Instagram name to Levii's to match the spelling of the new Beyoncé song.