The return to the stock market is only a few months back, but the euphoria is already gone, the reality has overtaken Levi Strauss. The jeans manufacturer shocks with a drop in earnings. Even the sales growth does not convince.
For the traditional jeans manufacturer Levi Strauss (Levi’s), things did not go as smoothly as expected in the second quarter. Due to high costs for the IPO broke the year-on-year profit by 63 percent on the bottom line $ 29 million. Levi’s also reported a revenue increase of five percent to $ 1.3 billion, but also remained below the forecasts of experts.
For investors, the annual report was initially not very well received. The stock fell temporarily after the stock market with more than six percent into the min.
The 166-year-old fashion company, whose roots go back to the Bavarian emigrant Levi Strauss, had celebrated in March a brilliant stock market return on Wall Street. But the euphoria on the market soon subsided, the company’s share was only slightly above the issue price of $ 22.