Levi Strauss Shares Slide Ahead of Third-Quarter Earnings Report

Levi Strauss and Company shares dropped 3.17 percent to $19.88 on Wednesday morning as investors waited for the apparel maker's third-quarter earnings report. Analysts expect the denim maker to report adjusted earnings of $0.36 per share and revenue of $1.61 billion for the quarter. The stock was trading closer to its 52-week low of $17.92 than its high of $25.53. Strong demand for denim and growth across Europe, Asia and China are expected to support the company's performance. Major brokerages have mixed views on the stock ahead of the results. Jefferies recently cut its price target to $25 from $27 while keeping a buy rating. UBS maintained its $34 price target and a buy rating. The company also disclosed a cybersecurity incident in August involving unauthorized access through social engineering, though no consumer data was affected.

Context

Quarterly earnings reports give investors a clear picture of a company's financial health and business direction. Denim maker stocks often react strongly to shifts in global retail demand and profit forecasts.