Announcement • Apr 09
Levi Strauss & Co. Announces Planned Retirement of Chief Financial Officer Harmit Singh, Effective No Later Than November 30, 2026 Levi Strauss & Co. announced that Chief Financial Officer Harmit Singh will continue in his role as Chief Financial Officer until a successor is appointed and then transition to serve as Special Advisor, following which he will retire. Singh joined Levi Strauss & Co. in 2013 as Chief Financial Officer, taking responsibility for the company’s global finance, information technology, M&A, investor relations, strategic sourcing and global business services functions. Prior to joining Levi Strauss & Co., Singh served as Chief Financial Officer at Hyatt Hotels Corporation and held Division CFO roles at Yum! Restaurants International and Pizza Hut. To facilitate the transition and enable continuity, the Company and Mr. Singh have entered into a transition and separation agreement dated April 3, 2026 (the “Separation Agreement”) which will allow the Company to leverage Mr. Singh’s long tenure and Company expertise as Special Advisor beginning on the Transition Date and continuing through November 30, 2026. Until such time as his successor commences in the role as Chief Financial Officer, but no later than November 30, 2026. Announcement • Mar 25
Levi Strauss & Co. to Report Q1, 2026 Results on Apr 07, 2026 Levi Strauss & Co. announced that they will report Q1, 2026 results on Apr 07, 2026 Announcement • Mar 12
Levi Strauss & Co., Annual General Meeting, Apr 22, 2026 Levi Strauss & Co., Annual General Meeting, Apr 22, 2026. Recent Insider Transactions • Feb 15
Insider recently sold Mex$15m worth of stock On the 12th of February, Jason Gowans sold around 40k shares on-market at roughly Mex$377 per share. This transaction amounted to 30% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of Mex$17m more than they bought in the last 12 months. Announcement • Jan 14
Levi Strauss & Co. to Report Q4, 2025 Results on Jan 28, 2026 Levi Strauss & Co. announced that they will report Q4, 2025 results at 4:00 PM, US Eastern Standard Time on Jan 28, 2026 Announcement • Dec 17
Levi Strauss & Co. Appoints Jeffrey J. Jones II as Board Member and Committee Member, Effective January 21, 2026 Levi Strauss & Co. announced that its board of directors has appointed Jeffrey J. Jones II to serve as a member of the board, effective January 21, 2026, at which time he will serve as a member of the board’s Nominating, Governance and Corporate Citizenship Committee as well as the Compensation and Human Capital Committee. Mr. Jones has served as President and CEO and Director of H&R Block Inc. since 2017 and brings more than 30 years of experience across five industries. Mr. Jones has served as President, Chief Executive Officer and Director of H&R Block Inc. since 2017 and will retire from the company on December 31, 2025. He previously served as President of Ride Sharing at Uber Technologies Inc., where he led operations, customer support, strategy and planning, product operations and marketing. Mr. Jones also served as Executive Vice President and Chief Marketing Officer at Target Corporation, overseeing brand, digital and guest experience strategy, corporate communications, investor relations and brand management of all owned brands and Target’s limited-time offering collaborations. Earlier in his career, Mr. Jones was partner and President of McKinney, an advertising agency, where he led major client engagements and organizational growth. Mr. Jones is a member of the Council for Inclusive Capitalism, the Fast Company Impact Council and the Kansas City Economic Club. He holds a Bachelor of Arts degree in Communications from the University of Dayton. Valuation Update With 7 Day Price Move • Oct 16
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to Mex$385, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 10x in the Luxury industry in South America. Total returns to shareholders of 46% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Mex$406 per share. Declared Dividend • Oct 13
Third quarter dividend of US$0.14 announced Shareholders will receive a dividend of US$0.14. Ex-date: 20th October 2025 Payment date: 4th November 2025 Dividend yield will be 1.8%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is covered by both earnings (40% earnings payout ratio) and cash flows (68% cash payout ratio). The dividend has increased by an average of 11% per year over the past 6 years. However, payments have been volatile during that time. EPS is expected to grow by 26% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 11
Third quarter 2025 earnings released: EPS: US$0.31 (vs US$0.057 in 3Q 2024) Third quarter 2025 results: EPS: US$0.31 (up from US$0.057 in 3Q 2024). Revenue: US$1.54b (up 7.0% from 3Q 2024). Net income: US$122.0m (up 437% from 3Q 2024). Profit margin: 7.9% (up from 1.6% in 3Q 2024). Revenue is forecast to grow 2.7% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Luxury industry in South America. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 15% per year, which means it is well ahead of earnings. Announcement • Oct 04
Levi Strauss & Co. Announces Board Changes, Effective October 2, 2025 On October 2, 2025, having reached the mandatory retirement age, Spencer Fleischer, a Class I director, retired from Levi Strauss & Co’s. Board of Directors. The Company’s corporate governance guidelines provide that a director is deemed to have resigned automatically upon the director’s 72nd birthday unless the Nominating, Governance and Corporate Citizenship Committee of the Board or the Board, upon recommendation from the NGCC Committee, waives this requirement. Mr. Fleischer has served on the Company’s Board since 2013 and most recently served as the chair of the Compensation and Human Capital Committee and a member of the Finance Committee. Effective upon Mr. Fleisher’s retirement, Troy Alstead was named the Chair of the Company’s Compensation and Human Capital Committee. Mr. Fleischer’s retirement is not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices. Following Mr. Fleischer’s departure, the Board consists of twelve directors. Announcement • Sep 25
Levi Strauss & Co. to Report Q3, 2025 Results on Oct 09, 2025 Levi Strauss & Co. announced that they will report Q3, 2025 results on Oct 09, 2025 Announcement • Aug 20
Levi Strauss & Co. Appoints Chris Callieri as Senior Vice President and Chief Supply Chain Officer, Effective September 15, 2025 Levi Strauss & Co. announced the appointment of Chris Callieri as senior vice president and chief supply chain officer, effective September 15, 2025. Reporting to Michelle Gass, president and chief executive officer, Callieri will join the company’s executive leadership team and will be responsible for the global supply chain operations for the Levi’s brand. His responsibilities include product development, sourcing, global supply management, sustainability, and distribution and logistics. Callieri brings more than 20 years of international supply chain experience in the retail and consumer goods industries. He joins LS&Co. from Victoria’s Secret & Co., where he served as chief supply chain officer, leading a global team across multiple geographies and overseeing product development, sourcing, production, and distribution and logistics for various categories including intimates, apparel, accessories and beauty. Previously he was at Tory Burch, where he was pivotal in implementing systems like PLM, Merchandise Planning and SAP, and led the transformation of the supply chain. Chris has a long-standing commitment to sustainability and established Tory Burch’s sustainability team and strategy. Prior to Tory Burch, Callieri held senior roles at Adidas, including senior vice president, product operations,where he was responsible for materials development, product development, sourcing and logistics for Adidas Lifestyle Brands. Callieri's extensive experience also includes leadership roles at HRC Advisory and A.T. Kearney, where he led various transformation initiatives and developed strategies to improve supply chain responsiveness and product innovation for leading retailers. Declared Dividend • Jul 14
Second quarter dividend of US$0.14 announced Shareholders will receive a dividend of US$0.14. Ex-date: 24th July 2025 Payment date: 8th August 2025 Dividend yield will be 2.0%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is covered by both earnings (49% earnings payout ratio) and cash flows (56% cash payout ratio). The dividend has increased by an average of 9.6% per year over the past 6 years. However, payments have been volatile during that time. EPS is expected to grow by 40% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 11
Second quarter 2025 earnings released: EPS: US$0.20 (vs US$0.045 in 2Q 2024) Second quarter 2025 results: EPS: US$0.20 (up from US$0.045 in 2Q 2024). Revenue: US$1.45b (flat on 2Q 2024). Net income: US$79.6m (up 342% from 2Q 2024). Profit margin: 5.5% (up from 1.2% in 2Q 2024). Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 8.9% growth forecast for the Luxury industry in South America. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Announcement • May 21
Authentic Brands Group, LLC entered into a definitive agreement to acquire Levi Strauss & Co. (Canada) Inc. from Levi Strauss & Co. (NYSE:LEVI) for approximately CAD 390 million. Authentic Brands Group, LLC entered into a definitive agreement to acquire Levi Strauss & Co. (Canada) Inc. from Levi Strauss & Co. (NYSE:LEVI) for approximately CAD 390 million on May 18, 2025. The transaction has initial transaction value of CAD 311 million, subject to customary adjustments and closing conditions, with the potential to reach up to CAD 391 million through an CAD 80 million earnout opportunity in future years based on the performance of the Dockers® business under Authentic’s ownership.
The transaction is subject to customary closing conditions, and the expected completion of the transaction is on or around July 31, 2025.
BofA Securities, Inc. acted as financial advisor for Levi Strauss & Co. Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor for Levi Strauss & Co. Valuation Update With 7 Day Price Move • Apr 14
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to Mex$271, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 9x in the Luxury industry in South America. Total loss to shareholders of 20% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Mex$392 per share. Reported Earnings • Apr 08
First quarter 2025 earnings released: EPS: US$0.35 (vs US$0.027 loss in 1Q 2024) First quarter 2025 results: EPS: US$0.35 (up from US$0.027 loss in 1Q 2024). Revenue: US$1.53b (down 2.0% from 1Q 2024). Net income: US$140.2m (up US$150.8m from 1Q 2024). Profit margin: 9.2% (up from net loss in 1Q 2024). Revenue is forecast to grow 1.6% p.a. on average during the next 3 years, compared to a 9.1% growth forecast for the Luxury industry in South America. Over the last 3 years on average, earnings per share has fallen by 43% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Announcement • Mar 13
Levi Strauss & Co., Annual General Meeting, Apr 23, 2025 Levi Strauss & Co., Annual General Meeting, Apr 23, 2025. Recent Insider Transactions • Mar 09
Independent Director recently sold Mex$1.5m worth of stock On the 3rd of March, David Friedman sold around 4k shares on-market at roughly Mex$368 per share. This transaction amounted to 3.1% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of Mex$1.3m more than they bought in the last 12 months. Declared Dividend • Feb 04
Fourth quarter dividend of US$0.13 announced Shareholders will receive a dividend of US$0.13. Ex-date: 12th February 2025 Payment date: 28th February 2025 Dividend yield will be 2.0%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is not adequately covered by earnings (95% earnings payout ratio). However, it is well covered by cash flows (31% cash payout ratio). The dividend has increased by an average of 12% per year over the past 5 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 5.1% to bring the payout ratio under control. EPS is expected to grow by 145% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Jan 30
Full year 2024 earnings released: EPS: US$0.53 (vs US$0.63 in FY 2023) Full year 2024 results: EPS: US$0.53 (down from US$0.63 in FY 2023). Revenue: US$6.36b (up 2.9% from FY 2023). Net income: US$210.6m (down 16% from FY 2023). Profit margin: 3.3% (down from 4.0% in FY 2023). Revenue is forecast to grow 2.5% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Luxury industry in South America. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 8% per year, which means it has not declined as severely as earnings. Announcement • Jan 15
Levi Strauss & Co. to Report Q4, 2024 Results on Jan 29, 2025 Levi Strauss & Co. announced that they will report Q4, 2024 results on Jan 29, 2025 Announcement • Oct 29
Levi Strauss & Co. Appoints Dario Aguilar as Managing Director, Latin America, Effective December 2, 2024 Levi Strauss & Co. announced the appointment of Dario Aguilar as the company’s managing director for Latin America, effective December 2, 2024. Reporting to EVP and Chief Commercial Officer Gianluca Flore, Aguilar will be responsible for overseeing the company’s commercial operations in the region across channels and driving long-term, sustainable growth as a brand-led, DTC-first apparel leader. With more than 25 years of commercial experience, Aguilar most recently served as CEO of Sephora Mexico, where he oversaw the growth of the brand’s retail network in the country, tripling top and bottom-line growth since joining the LVMH Group in 2021. Aguilar also previously led commercial operations for C&A as CEO of Mexico, where he oversaw the brand’s retail fleet and e-commerce launch, in addition to its local logistics and manufacturing operations. Prior to this, he served in various commercial leadership roles at Adidas and Nike across Latin America, as well as in Europe, where he expanded the brands’ owned-and-operated and franchise retail operations across markets. Upcoming Dividend • Oct 22
Upcoming dividend of US$0.13 per share Eligible shareholders must have bought the stock before 29 October 2024. Payment date: 14 November 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 2.8%. Lower than top quartile of Mexican dividend payers (7.1%). Lower than average of industry peers (4.4%). Announcement • Oct 16
Levi Strauss & Co. Announces Board Changes Levi Strauss & Co. announced that its board of directors has elected Daniel Geballe to serve as a member of the board, effective April 26, 2025, which is when current member David Friedman is set to retire from the board upon reaching the mandatory retirement age. Geballe currently serves as a managing director at SJF Ventures, where he leads investments in early-stage companies creating positive social and environmental impacts. Prior to SJF Ventures, Geballe worked for The Corporation for Enterprise Development and Fisher Investments. He holds a bachelor’s degree in anthropology and a master’s degree in environmental management, both from Yale University, and an M.B.A. from the Stanford Graduate School of Business. Geballe also serves as Vice President and a member of the Board of Directors of the Levi Strauss Foundation, where he chairs the Finance Committee. Declared Dividend • Oct 07
Third quarter dividend of US$0.13 announced Shareholders will receive a dividend of US$0.13. Ex-date: 29th October 2024 Payment date: 14th November 2024 Dividend yield will be 1.8%, which is lower than the industry average of 3.1%. Sustainability & Growth Dividend is not covered by earnings (126% earnings payout ratio). However, it is well covered by cash flows (33% cash payout ratio). The dividend has increased by an average of 12% per year over the past 5 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to grow by 40% to bring the payout ratio under control. EPS is expected to grow by 208% over the next 3 years, which is sufficient to bring the dividend into a sustainable range. Reported Earnings • Oct 03
Third quarter 2024 earnings released: EPS: US$0.052 (vs US$0.024 in 3Q 2023) Third quarter 2024 results: EPS: US$0.052 (up from US$0.024 in 3Q 2023). Revenue: US$1.52b (flat on 3Q 2023). Net income: US$20.7m (up 116% from 3Q 2023). Profit margin: 1.4% (up from 0.6% in 3Q 2023). Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Luxury industry in South America. Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Announcement • Sep 18
Levi Strauss & Co. to Report Q3, 2024 Results on Oct 02, 2024 Levi Strauss & Co. announced that they will report Q3, 2024 results on Oct 02, 2024 Valuation Update With 7 Day Price Move • Aug 27
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to Mex$390, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 14x in the Luxury industry in South America. Total loss to shareholders of 24% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Mex$467 per share. Upcoming Dividend • Jul 26
Upcoming dividend of US$0.13 per share Eligible shareholders must have bought the stock before 02 August 2024. Payment date: 20 August 2024. The company is paying out more than 100% of its profits but is generating plenty of cash to support the dividend. Trailing yield: 2.7%. Lower than top quartile of Mexican dividend payers (7.2%). Lower than average of industry peers (4.1%). Valuation Update With 7 Day Price Move • Jul 04
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to Mex$353, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 12x in the Luxury industry in South America. Total loss to shareholders of 32% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at Mex$386 per share. Announcement • Jun 15
Levi Strauss & Co. to Report Q2, 2024 Results on Jun 26, 2024 Levi Strauss & Co. announced that they will report Q2, 2024 results on Jun 26, 2024 Announcement • Apr 12
Levi Strauss & Co. Appoints Gianluca Flore as Chief Commercial Officer Levi Strauss & Co announced the appointment of Gianluca Flore as executive vice president and chief commercial officer, effective July 29. Reporting to Michelle Gass, president and chief executive officer, Flore will join the company’s executive leadership team and will be responsible for the commercial operations of the Levi’s® brand across all global channels, including stores, e-commerce and wholesale. Flore brings more than 20 years of international commercial experience in the luxury apparel and lifestyle sector. He joins LS&Co. from Burberry, where he was appointed chief commercial officer in 2021, overseeing five regions and a network of more than 400 stores. Prior to this, he served as the company’s president for the Americas and Global Retail Excellence, spearheading the expansion and productivity of the brand’s retail footprint, and elevating distribution and positioning across wholesale. Flore has also held leadership roles at the luxury group Kering, including CEO of Brioni, where he established a profitable retail business model for the brand, and at Bottega Veneta, where he led double-digit revenue increases across wholesale and retail channels. Flore holds a BBA and post-graduate certificate from LUISS University in Rome, Italy, as well as a post-graduate certificate from the London School of Economics. Reported Earnings • Apr 04
First quarter 2024 earnings released: US$0.027 loss per share (vs US$0.29 profit in 1Q 2023) First quarter 2024 results: US$0.027 loss per share (down from US$0.29 profit in 1Q 2023). Revenue: US$1.56b (down 7.8% from 1Q 2023). Net loss: US$10.6m (down 109% from profit in 1Q 2023). Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 10% growth forecast for the Luxury industry in South America. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 14% per year, which means it is significantly lagging earnings. Announcement • Mar 15
Levi Strauss & Co., Annual General Meeting, Apr 24, 2024 Levi Strauss & Co., Annual General Meeting, Apr 24, 2024, at 10:30 Pacific Standard Time. Agenda: To consider Election of Class II Directors; to consider Advisory Vote on Executive Compensation; to consider Ratification of Selection of Independent Registered Public Accounting Firm; and to consider Corporate Financial Sustainability Report. Recent Insider Transactions • Feb 11
Insider recently sold Mex$4.6m worth of stock On the 7th of February, Tracy Layney sold around 16k shares on-market at roughly Mex$290 per share. This transaction amounted to 28% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Upcoming Dividend • Jan 30
Upcoming dividend of US$0.12 per share at 2.9% yield Eligible shareholders must have bought the stock before 06 February 2024. Payment date: 23 February 2024. Payout ratio is on the higher end at 76%, and the cash payout ratio is above 100%. Trailing yield: 2.9%. Lower than top quartile of Mexican dividend payers (6.7%). Lower than average of industry peers (5.4%). Declared Dividend • Jan 29
Fourth quarter dividend of US$0.12 announced Shareholders will receive a dividend of US$0.12. Ex-date: 6th February 2024 Payment date: 23rd February 2024 Dividend yield will be 2.4%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is covered by earnings (70% earnings payout ratio) but not covered by cash flows (159% cash payout ratio). The dividend has increased by an average of 12% per year over the past 4 years. However, payments have been volatile during that time. EPS is expected to grow by 102% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 26
Full year 2023 earnings released: EPS: US$0.63 (vs US$1.43 in FY 2022) Full year 2023 results: EPS: US$0.63 (down from US$1.43 in FY 2022). Revenue: US$6.18b (flat on FY 2022). Net income: US$249.6m (down 56% from FY 2022). Profit margin: 4.0% (down from 9.2% in FY 2022). Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Luxury industry in South America. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Announcement • Jan 10
Levi Strauss & Co. Appoints David Marberger to the Board of Directors and Member of Audit Committee Levi Strauss & Co. announced that its board of directors has appointed David Marberger as a member of the board and to serve on the board’s Audit Committee, effective immediately. With more than 30 years of finance and leadership experience, Marberger currently serves as the executive vice president and chief financial officer for Conagra Brands Inc. As CFO of Conagra Brands, Marberger oversees the company's finances and information technology functions. He joined Conagra Brands in August 2016. Prior to joining Conagra Brands, Marberger served as chief financial officer at Prestige Brands. Marberger also served as chief financial officer of Godiva Chocolatier for seven years, where he was responsible for the finance, accounting, audit, tax and IT functions, in addition to overseeing Godiva’s worldwide strategic planning process. And before that, Marberger served as chief financial officer of Tasty Baking Company and spent 10 years at Campbell Soup Company, where he held finance roles with increasing responsibility. Marberger holds an M.B.A. from The Wharton School, University of Pennsylvania, and a B.B.A. from the University of Massachusetts. Announcement • Dec 19
Levi Strauss & Co. Announces Patricia Salas Pineda, A Class III Director, Retires from Board of Director On December 18, 2023, having reached the mandatory retirement age, Patricia Salas Pineda, a Class III director, retired from the Levi Strauss & Co’s. Board of Directors. The Company’s corporate governance guidelines provide that a director is deemed to have resigned automatically upon the director’s 72nd birthday unless the Nominating, Governance and Corporate Citizenship Committee of the Board (the “NGCC Committee”) or the Board, upon recommendation from the NGCC Committee, waives this requirement. Ms. Pineda served on the Company’s Board since 1991 and she most recently served as a member of the NGCC Committee and the Finance Committee of the Board. Ms. Pineda’s retirement is not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices. The Board intends to fill the resulting vacancy in due course pursuant to the Company’s Amended and Restated Bylaws. Following Ms. Pineda’s departure, the Board consists of eleven directors. Buying Opportunity • Oct 18
Now 21% undervalued Over the last 90 days, the stock is up 4.4%. The fair value is estimated to be Mex$312, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 12% over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 5.5% per annum. Earnings is also forecast to grow by 25% per annum over the same time period. New Risk • Oct 06
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.5% Last year net profit margin: 9.1% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (4.5% net profit margin). Reported Earnings • Oct 06
Third quarter 2023 earnings released: EPS: US$0.024 (vs US$0.43 in 3Q 2022) Third quarter 2023 results: EPS: US$0.024 (down from US$0.43 in 3Q 2022). Revenue: US$1.51b (flat on 3Q 2022). Net income: US$9.60m (down 94% from 3Q 2022). Profit margin: 0.6% (down from 11% in 3Q 2022). Revenue is forecast to grow 5.6% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Luxury industry in South America. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 27
Upcoming dividend of US$0.12 per share at 3.3% yield Eligible shareholders must have bought the stock before 03 August 2023. Payment date: 17 August 2023. Payout ratio is a comfortable 44% but the company is not cash flow positive. Trailing yield: 3.3%. Lower than top quartile of Mexican dividend payers (6.6%). Lower than average of industry peers (4.6%). Announcement • Jul 12
Levi's Introduces New Products Over the past five years, season after season, Levi's has introduced new products that meld innovative design thinking with an overriding commitment to sustainability. Now, in conjunction with the 150th anniversary of the iconic Levi's 501 jean, Levi's is featuring a suite of products - a Plant-Based 501, a hemp-cotton blend Selvedge 501, and a Circular 501 - that show how new thinking and technologies can be applied to an age-old classic, pointing the way to the future. The Plant-Based 501 is made of at least 97% plant-based materials, with all certified organic cotton, natural destuff, a plant-based patch and ink made from wood waste. Hitting the market in late Summer 2023, these jeans are an indication of what the industry could look like in the years ahead given the push to minimize synthetic materials derived from fossil fuels and the need to make more garments with renewable inputs rather than finite resources. They are an evolution in the company's design innovation practice, building on past seasons and establishing new foundations on which to build going forward. Among the attributes of the Plant-Based 501 are: The fabric is made with 100% OCS-Certified organically grown cotton and dyed with plant-based indigo fromtony Creek Colors; Denim color references Levi's X80 archival shade; The garment back patch is made from a material called MIRUM by NFW, and is fashioned from 100% biobased, plastic-free inputs generating no effluent in production; The internal pocket bag is 100% cotton and printed with BioBlack TX, a plant-based black pigment made from wood waste, manufactured in a closed-loop system and developed by Nature Coatings, another collaborating partner.oven labels and sewing threads in non-critical areas of the garment are likewise 100% cotton; Each pair contains at least 97% bio-based content based on components weight measured against overall garment weight (non-plant-based content includes sew thread, the care label and metal trims). Additionally, building on its efforts with cottonized hemp over the years through its Wellthread line, Levi’s is releasing a hemp/cotton blend Selvedge 501. These will come in a variety of shades and finishes for women and men alike, some featuring natural dyes. They will be released throughout the year, marrying the premium selvedge fabric with the alternative fiber innovation that has characterized so much of Wellthread’s work in recent years. Also being highlighted as part of the 150th anniversary celebration is the Circular 501, first released in 2022. This jean is made with a mix of organic cotton and Renewcell’s pioneering Circulose fiber, viscose made in part from recycled denim and other forms of textile waste. The formulation allows to use far fewer natural resources and chemicals in the production process. Each material component aligns with a strict single-fiber strategy that enables efficient recycling at the end of the garment’s useful life. By replacing parts of the garment that would normally be made from synthetic fibers – like polyester pocketing, threads, labels, and interfacing – with 100 %cotton alternatives, we’ve removed synthetic elements that would otherwise disrupt the cotton recovery process. The result is a new jean made with old jeans that is itself designed to be recyclable, with the potential to be re-made into new jeans, again and again. Reported Earnings • Jul 07
Second quarter 2023 earnings released: US$0.004 loss per share (vs US$0.13 profit in 2Q 2022) Second quarter 2023 results: US$0.004 loss per share (down from US$0.13 profit in 2Q 2022). Revenue: US$1.34b (down 9.1% from 2Q 2022). Net loss: US$1.60m (down 103% from profit in 2Q 2022). Revenue is forecast to grow 6.3% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Luxury industry in South America. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Upcoming Dividend • Apr 26
Upcoming dividend of US$0.12 per share at 3.4% yield Eligible shareholders must have bought the stock before 03 May 2023. Payment date: 18 May 2023. Payout ratio is a comfortable 37% but the company is not cash flow positive. Trailing yield: 3.4%. Lower than top quartile of Mexican dividend payers (6.4%). Lower than average of industry peers (5.9%). Valuation Update With 7 Day Price Move • Apr 13
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to Mex$278, the stock trades at a forward P/E ratio of 11x. Average forward P/E is 11x in the Luxury industry in South America. Total loss to shareholders of 23% over the past year. Simply Wall St's valuation model estimates the intrinsic value at Mex$275 per share. Reported Earnings • Apr 11
First quarter 2023 earnings released: EPS: US$0.29 (vs US$0.49 in 1Q 2022) First quarter 2023 results: EPS: US$0.29 (down from US$0.49 in 1Q 2022). Revenue: US$1.69b (up 6.1% from 1Q 2022). Net income: US$114.7m (down 41% from 1Q 2022). Profit margin: 6.8% (down from 12% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.6% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Luxury industry in South America. Recent Insider Transactions • Feb 03
Insider recently sold Mex$1.7m worth of stock On the 31st of January, Lisa Stirling sold around 5k shares on-market at roughly Mex$339 per share. This transaction amounted to 60% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Upcoming Dividend • Jan 31
Upcoming dividend of US$0.12 per share at 2.7% yield Eligible shareholders must have bought the stock before 07 February 2023. Payment date: 23 February 2023. Payout ratio is a comfortable 31% but the company is not cash flow positive. Trailing yield: 2.7%. Lower than top quartile of Mexican dividend payers (5.7%). Lower than average of industry peers (3.5%). Reported Earnings • Jan 26
Full year 2022 earnings released: EPS: US$1.43 (vs US$1.38 in FY 2021) Full year 2022 results: EPS: US$1.43 (up from US$1.38 in FY 2021). Revenue: US$6.17b (up 7.0% from FY 2021). Net income: US$569.1m (up 2.8% from FY 2021). Profit margin: 9.2% (in line with FY 2021). Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 12% growth forecast for the Luxury industry in South America. Announcement • Jan 20
Levi Strauss & Co. Appoints Jason Gowans as Senior Vice President and Chief Digital Officer, Effective February 6, 2023 Levi Strauss & Co. announced that Jason Gowans has been named senior vice president and chief digital officer for LS&Co., effective February 6. In this new role within the company, Gowans will be focused on bringing together LS&Co.’s engineering, data, AI and digital product management to spearhead digital efforts both for ecommerce and the digital go-to-market. He will report to Michelle Gass, president, LS&Co., and will sit on the executive leadership team (ELT). The appointment of a chief digital officer is key to managing the company’s primary growth drivers, including DTC revenue increases coming from productivity, service, loyalty and ecommerce acceleration. Gowans joins the company from Nordstrom, where he spent the past 10 years in a variety of marketing, data science and digital roles, serving most recently as senior vice president of Digital Commerce, leading the growth of Nordstrom’s digital business on Nordstrom.com and NordstromRack.com. Before that, he was senior vice president of data science and analytics, leading data science and analytics for the company across all functional areas, including marketing, digital, merchandising and supply chain. Announcement • Jan 12
Levi Strauss & Co. to Report Q4, 2022 Results on Jan 25, 2023 Levi Strauss & Co. announced that they will report Q4, 2022 results on Jan 25, 2023 Upcoming Dividend • Oct 27
Upcoming dividend of US$0.12 per share Eligible shareholders must have bought the stock before 03 November 2022. Payment date: 21 November 2022. Payout ratio is a comfortable 28% and the cash payout ratio is 82%. Trailing yield: 3.2%. Lower than top quartile of Mexican dividend payers (6.6%). Higher than average of industry peers (2.9%). Buying Opportunity • Oct 11
Now 23% undervalued after recent price drop Over the last 90 days, the stock is down 14%. The fair value is estimated to be Mex$390, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.2% over the last 3 years. Earnings per share has grown by 35%. For the next 3 years, revenue is forecast to grow by 5.4% per annum. Earnings is also forecast to grow by 10% per annum over the same time period. Reported Earnings • Oct 07
Third quarter 2022 earnings released: EPS: US$0.44 (vs US$0.48 in 3Q 2021) Third quarter 2022 results: EPS: US$0.44 (down from US$0.48 in 3Q 2021). Revenue: US$1.52b (up 1.3% from 3Q 2021). Net income: US$173.0m (down 11% from 3Q 2021). Profit margin: 11% (down from 13% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 6.4% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Luxury industry in South America. Over the last 3 years on average, earnings per share has increased by 36% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Upcoming Dividend • Jul 22
Upcoming dividend of US$0.12 per share Eligible shareholders must have bought the stock before 29 July 2022. Payment date: 17 August 2022. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Mexican dividend payers (5.9%). Lower than average of industry peers (3.0%). Reported Earnings • Jul 08
Second quarter 2022 earnings released: EPS: US$0.13 (vs US$0.16 in 2Q 2021) Second quarter 2022 results: EPS: US$0.13 (down from US$0.16 in 2Q 2021). Revenue: US$1.47b (up 15% from 2Q 2021). Net income: US$49.7m (down 23% from 2Q 2021). Profit margin: 3.4% (down from 5.1% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the next year, revenue is forecast to grow 6.5%, compared to a 19% growth forecast for the industry in Mexico. Upcoming Dividend • Apr 28
Upcoming dividend of US$0.10 per share Eligible shareholders must have bought the stock before 05 May 2022. Payment date: 24 May 2022. Payout ratio is a comfortable 21% and this is well supported by cash flows. Trailing yield: 2.2%. Lower than top quartile of Mexican dividend payers (5.3%). Lower than average of industry peers (2.6%). Reported Earnings • Apr 07
First quarter 2022 earnings released First quarter 2022 results: Revenue: US$1.59b (up 22% from 1Q 2021). Net income: US$195.8m (up 37% from 1Q 2021). Profit margin: 12% (up from 11% in 1Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is forecast to grow 8.2%, compared to a 26% growth forecast for the industry in Mexico. Upcoming Dividend • Feb 01
Upcoming dividend of US$0.10 per share Eligible shareholders must have bought the stock before 08 February 2022. Payment date: 24 February 2022. Payout ratio is a comfortable 19% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of Mexican dividend payers (4.7%). Lower than average of industry peers (3.4%).