‘Our code is strong,’ says Levi’s tip exec after batch slide

Mr. Market has got Levi’s all wrong, one of a tip executives exclusively told Yahoo Finance.

Levi’s code is “strong” and saying “momentum” opposite a globe, a company’s Chief Financial officer Harmit Singh pronounced on Yahoo Finance’s The First Trade on Wednesday.

One can’t censure a marketplace for maybe disagreement Levi’s second entertain as a open company, however. Nor for promulgation a batch down a pointy 11% in early trade Wednesday.

Levi’s reported second entertain sales of $1.31 billion Tuesday evening, violence researcher forecasts for $1.29 billion. Earnings crossed a newswires during $0.07 a share, descending brief of estimates of $0.12 a share. But Levi’s pronounced incompatible some $29 million in costs associated to a late Mar IPO — that are one-time in inlet — tangible gain tallied $0.17 a share.

Singh reliable that practiced gain series in a interview. That’s apparently improved than Wall Street expected.

But Levi’s sales trends during U.S. indiscriminate accounts — mostly dialect stores — did tumble 2%. That shouldn’t be a shocker to anyone investing in a sell space and in fact, it’s stronger than many rivals, according to attention sources. Even still, that outcome — and some-more discreet explanation on a opinion for indiscriminate by CEO Chip Bergh on a researcher discussion call — expected spooked some investors.

Singh pronounced a dialect store channel stays challenging.

Exclusive - Suki Waterhouse seen during Levi's during Coachella on Saturday, Apr 16, 2016, in Indio. (Photo by Eric Charbonneau/Invision for Levi's/AP Images)Exclusive - Suki Waterhouse seen during Levi's during Coachella on Saturday, Apr 16, 2016, in Indio. (Photo by Eric Charbonneau/Invision for Levi's/AP Images)

More broadly though, Levi’s checked a garland of boxes as a code well-positioned to win in an ultra rival attire space. Operating income expansion for Levi’s Americas, European and Asia segments incompatible flighty banking swings outpaced sales growth. Always a good pointer for a retailer. Sales of men’s products rose 6%, women’s surged 16%, bottoms gained 8% and tops peaked 14%.

Sales of cut-off shorts alone exploded 50% due to Levi’s positioning during a renouned Coachella. Levi’s reported that register levels continue to be healthy.

“The association delivered another entertain of plain top-line expansion notwithstanding a severe backdrop,” wrote maestro sell researcher Robert Drbul during Guggenheim Securities. “We trust a Levi’s code commands a medium reward given a augmenting strength and several expansion opportunities, globally, with several code equity government efforts ongoing (Coachella and ‘Stranger Things’ partnerships, to name a few).”

Who are we to gamble opposite Coachella, cut-off shorts and denim jackets?

Brian Sozzi is an editor-at-large and co-host of ‘The First Trade’ during Yahoo Finance. Follow him on Twitter @BrianSozzi

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