The blue jeans maker’s shares erased all gains made this year after the CFO warned of troubles ahead.
Levi Strauss stock fell on Friday and shares were still pressured on Monday after the clothing veteran delivered downbeat results. First-quarter earnings per share dropped to 29 cents from 48 cents a year ago. Sales of $1.69bn topped estimates for $1.62bn but this wasn’t enough to keep shares afloat.
Remarks from CFO Harmit Singh sent shares 16% lower on Friday. “A cautious outlook on the macro-environment” was in Singh’s comments, in line with some recent economic headwinds. The drop erased all of the stock’s gains made this year, pushing it in the red for the year at $15 a share.
Levi Strauss became public in early 2019 at $22.22 a share. Since then, the company has failed to impress investors as its blue jeans seem to be more fashionable than its shares. The 166-year-old company first went public in 1971 but then was kept private for more than 30 years.
