|Bid||79.91 x 900|
|Ask||100.00 x 1000|
|Day's Range||83.71 - 85.43|
|52 Week Range||67.18 - 97.00|
|Beta (3Y Monthly)||1.35|
|PE Ratio (TTM)||19.40|
|Earnings Date||Apr 18, 2019 - Apr 22, 2019|
|Forward Dividend & Yield||2.04 (2.38%)|
|1y Target Est||95.20|
Technology is making its way into our clothing with e-textiles and wearables. Madison Maxey, Founder & Chief Innovation Officer of e-textile company Loomia, says that once standards are developed for the e-textile industry, “we’ll really start to see the market grow.” Yahoo Finance’s Alexis Christoforous speaks to her.
Jennifer Rogers talks to Yahoo Finance Editor-at-Large Brian Sozzi about the latest on Gap, as the retailer announces it will split itself and Old Navy into two publicly traded companies.
Levi Strauss & Co.'s return to the public markets got an enthusiastic reception from investors who believe the iconic brand is ready for a comeback — and still has a lot more room to grow. Levi's seems to have successfully convinced investors, at least for now, that it has a lot of opportunities to expand beyond just jeans, from tops to bolstering its women's business. In its prospectus, the company says it plans to use the proceeds from the public offering to expand more aggressively into China, India and Brazil and also build out more retail stores, which as of late last year totaled 824.
Lululemon (LULU) shares popped over 3% Thursday heading into the release of its fourth quarter financial results, as part of its larger 2019 climb. The yoga apparel and athleisure giant's bottom-line looks set to surge as it expands its menswear business, its global reach, and more.
Iconic denim brand Levi Strauss & Co. (NYSE:LEVI) has returned to the New York Stock Exchange and demand for Levi's initial public offering (IPO) is off the charts. After all, it's not often you get to buy into a 166-year-old company. Started by Levi Strauss and his customer Jacob Davis in 1873, the denim maker is taking a second crack at being a public company. The first time was in 1971. It lasted 14 years before descendants of the founder took the company private for $1.6 billion in 1985, at the time, the largest buyout of a publicly held U.S. firm. Flash forward to 2019, and it's ready for a second kick at the cat. InvestorPlace - Stock Market News, Stock Advice & Trading TipsI hadn't thought about writing about Levi's IPO, but then I got an email from Motif Investing offering IPO shares, and I just had to take a look at its prospectus. While I have total respect for the job CEO Chip Bergh has done turning the denim brand around, I've got my doubts about buying LEVI stock, which is bound to be popular. * 7 Beaten-Up Stocks to Buy as They Reverse Course Here's why: 7 Reasons to Steer Clear of the Levi IPO: It's Too PriceyAfter looking at Levi's prospectus, I concluded that its IPO is pricey from a valuation perspective. However, when I saw a MarketWatch article suggesting its stock is undervalued, I just had to understand the authors' rationale.Fundamentally, the authors believe that Levi's enterprise value as a multiple of invested capital at 2.7 times is low given its return on that invested capital over the past five years has never dropped below 14%.Furthermore, the authors conclude that Levi's fair value based on its discounted future cash flow is worth $19 a share or a market cap of $7.3 billion [based on 385.5 million shares outstanding after the IPO].I don't see things nearly as rosy. While you might think it makes sense to compare Levi's to other jean manufacturers and retailers, I'm going to compare it to Lululemon (NASDAQ:LULU), a brand that's still very much in growth mode, and an alternative you ought to consider before pulling the trigger on LEVI stock. In fiscal 2018, Levi's had adjusted EBITDA of $706.6 million. At the midpoint of its $14-$16 price range, Levi's is valued at 8.2 times its adjusted EBITDA [$5.78B divided by $706.6M]. In fiscal 2018, Lululemon's EBITDA was $564.2 million, which means its market cap of $19.3 billion is 34 times EBITDA. On the surface, it seems like a no-brainer in Levi's favor. However, you have to remember that LULU has grown revenues by 66% over the past four years compared to 17% for Levi's. Also, LULU's operating margin is 17%, 740 basis points higher than Levi's. As long as Lululemon continues to grow its men's, Asian and online businesses, it will continue to outperform Levi's.Do yourself a favor and compare Levi's to companies like VF (NYSE:VFC) and American Eagle Outfitters (NYSE:AEO) and you'll see that a valuation of $5.78 billion or more is quite high on a comparative basis. 7 Reasons to Steer Clear of the Levi IPO: Dual-Class Share StructureIf you want to own shares of Levi's be prepared for the Haas family to run the show because they control Levi's through the Class B shares. I'm of two minds when it comes to dual-class share structures. On the one hand, having a majority of the votes in the hands of long-term investors is a good thing. However, on the downside, is the fact that many of the large institutions that will be buying Levi's shares will have almost zero say in how the company is run. Oh, sure, in good times, who cares about corporate governance, but when Levi's falters, and it will because all companies go through difficult times, CEO Charles Bergh will have to convince not only the board but the entire Haas family of his plan to right the ship. * 7 Beaten-Up Stocks to Buy as They Reverse Course That's never an easy task. 7 Reasons to Steer Clear of the Levi IPO: Nothing But JeansWell, that's not entirely true. In recent years, Levi's has done an excellent job reducing its dependence on bottoms. In 2018, 74% of its revenue (both men and women) were from bottoms, 20% from tops, and 6% from footwear and accessories. Three years earlier, bottoms were 83% of its business, tops accounted for 11% of revenue and footwear and accessories the remaining 6%. However, its Levi's brand continues to be the dominant player, accounting for 86% of its overall figure, a number that's barely budged over the past four years. What's confusing about the prospectus is its interchangeable use of the words bottoms and pants. If I'm reading it correctly, pants, which accounted for 68% of overall revenue in 2018, are jeans and khakis, while the figure for bottoms includes pants as wells as skirts and shorts, which accounted for 6% of its overall revenue, flat to 2016.Also, its Dockers brand has slipped in importance, accounting for 7% of overall revenue in 2018, down from 10% in 2015. As denim goes, so goes Levi's. It wasn't too long ago that experts were calling for the demise of the blue jean. While I doubt that's ever going to come to pass, you never know if a new trend will arrive to supplant both denim and athleisure wear in the future. 7 Reasons to Steer Clear of the Levi IPO: Debt on Top of DebtAssuming Levi's goes out at a valuation of $5.78 billion, the company's long-term debt of $1.1 billion will be 19% of its market cap. That's not a massive amount by any means considering it's got more than $700 million on its balance sheet, but I can't help wonder why it hasn't paid down its debt over the past four years.Since fiscal 2014, Levi's paid off just $158 million of its long-term debt, which consists of $486 million in 5% senior notes due in May 2025 and $535 million of 3.375% senior notes due in March 2027. In addition, Levi's has paid out $300 million in dividends to shareholders (primarily the Haas family) over the past five years, not including the $110 million it will pay out in fiscal 2019The company expects to generate as much as $184 million in net proceeds from the sale of Class A shares other than those of the selling shareholders. None of which is earmarked for debt repayment. * 5 Stocks To Buy for the Happiest Employees That seems odd considering the high level of debt and cash. 7 Reasons to Steer Clear of the Levi IPO: Finding the Right BalanceIn the InvestorPlace stock-picking contest for 2019, I picked Canada Goose (NYSE:GOOS) because I believe it's developing a trifecta of growth -- wholesale, direct-to-consumer and online -- that will allow it to grow the top line by double-digits for the next few years without spending too much money on expensive store openings. By limiting the number of retail locations to 20-30 in some of the world's best cities, it provides the brand with a good advertising vehicle, while keeping the costs down. Levi's opened 74 stores in fiscal 2018 alone, including a 17,000 square-foot location in New York City's Times Square. That brings the company's retail footprint to 831 stores with another 500 shop-in-shops. When you consider that those retail stores along with its e-commerce sites accounted for just 35% its overall revenue in fiscal 2018 -- with an embarrassingly low 4% from e-commerce -- I have to wonder if it will ever find the right balance between the three revenue streams. In the last three years, Levi's capital expenditures have increased by 55% from $103 million in 2016 to $159 million in 2018. If it keeps opening 17,000 square-foot flagships, it's going to need a lot more than $159 million to get the job done. I'd watch spending if you do buy shares in the company. 7 Reasons to Steer Clear of the Levi IPO: Bergh's CompensationThere's no question that CEO Charles Bergh has done a good job turning around the brand. Last July, the Harvard Business Review published a good article about Bergh's transformation. If you're planning to invest, I recommend you read it. Of the four part's of Bergh's strategy, all of them are very much a work in progress. The one needing the most work is its goal to become a leading omnichannel retailer. In my books, you're not a successful omnichannel retailer unless you're generating at least 20% of your revenue online. In 2018 and 2017, Levi's e-commerce revenue accounted for just 4% of its overall revenue, well short of what's required for omnichannel excellence. For all Bergh's accomplished, he's still got a lot to prove in my opinion. Ultimately, has he done enough to justify three-year total compensation of $34.3 million, which doesn't include the $138 million worth of stock he'll own or have the right to acquire after Levi's IPO? * 5 of the Best Dow Jones Stocks to Buy for Solid Dividends If you buy Levi's shares, I guess you're going to find out. 7 Reasons to Steer Clear of the Levi IPO: Weak Asian BusinessOf all the negatives I've found about Levi's, the lack of success in Asia is the biggest surprise.In fiscal 2018, its Asian business contributed just 16% of Levi's overall revenue compared to 29% for Europe and 55% for the Americas. On a constant currency basis, its Asian business grew revenues by 8.2% in 2018, 180 basis points less than its growth in the Americas and less than half that of Europe. To catch up to Europe's overall revenue of $1.6 billion, Asia's got to double its sales to do so. True, you can look at it from the perspective that the best is yet to come, but given how competitive the Asian market is, I doubt that's going to happen anytime soon.Worse still, Asia's operating margin in 2018 was 9.8%, 830 and 800 basis points less than Europe and the Americas, respectively. Asia's got to hustle if Levi's hopes to get to $10 billion in sales by 2023. At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post 7 Reasons to Steer Clear of the Levi IPO appeared first on InvestorPlace.
Blue jeans giant Levi Strauss & Co. began trading Thursday on the New York Stock Exchange at $22.22 a share, after having priced its initial public offering at $17 a share the night before.
High-margin stocks with 'pricing power' in their markets are well positioned for more gains ahead, according to Goldman Sachs. This group of 50 stocks has posted stunning performance in the past year compared to low-margin stocks, and may outperform in the upcoming period as rising costs continue to pressure U.S. corporations, says Goldman in its latest US Thematic Views report. "Growing margin pressures have driven the outperformance of stocks with high pricing power," the firm says.
Levi Strauss is expected to begin trading on Thursday. The move comes as its next closest U.S. competitors, VF Corp and Gap Inc., plan corporate shake-ups of their own and customers shift their shopping habits.
The Board of Directors of VF Corporation (VFC), a global leader in branded lifestyle apparel, footwear and accessories, has elected Silicon Valley venture capitalist Veronica Wu as a director, effective March 12, 2019. “We’re pleased to welcome Veronica to VF’s Board of Directors,” said Steve Rendle, VF’s Chairman, President and Chief Executive Officer.
VF Corp NYSE:VFCView full report here! Summary * Perception of the company's creditworthiness is neutral * Bearish sentiment is low * Economic output in this company's sector is expanding Bearish sentimentShort interest | PositiveShort interest is extremely low for VFC with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting VFC. Money flowETF/Index ownership | NeutralETF activity is neutral. ETFs that hold VFC had net inflows of $4.29 billion over the last one-month. While these are not among the highest inflows of the last year, the rate of inflow is increasing. Economic sentimentPMI by IHS Markit | PositiveAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is strong relative to the trend shown over the past year. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. VFC credit default swap spreads are near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
At the beginning of the year, I put together a list of seven dark horse stocks that I felt were ready to surprise Wall Street in 2019 and stage huge rallies. One of my favorite picks on that list was Skechers (NYSE:SKX), the underappreciated and undervalued athletic footwear stock that seemed ready for a big 2019 surge, as favorable fundamentals converged on a hugely discounted valuation. * 10 Tech Stocks to Buy Now for 2025 Source: Shutterstock That's already happened. Year to date, SKX stock is up more than 40% on the back of strong holiday numbers and a healthy guide, which, together, implied that the good about Skechers is getting better and that the bad is turning around. Up 40% in just over two months, SKX stock may appear to out over its skis here and it may be -- in the near term. But, in the medium- to long-term, this stock will only head higher.Why? Because it is still an underappreciated and undervalued athletic footwear stock that will continue to benefit from favorable fundamentals converging on a discounted valuation. So long as this dynamic remains in play, SKX stock will continue to rally. By my math, that dynamic will remain in play until the stock reaches $40.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs such, buying here in the low $30's isn't too late. A good portion of the 2019 SKX rally hasn't happened yet. The Consumer Backdrop Is HealthyImportantly, the global consumer backdrop is healthy enough to support continued positive revenue growth at Skechers.Specifically, the U.S. economy appears to be stabilizing and consumer confidence is stabilizing with it. After three consecutive months of declines, U.S. consumer confidence ticked higher in February, concurrent with a stabilization in financial markets. Also, while the February jobs report missed on the headline jobs creation number, wages posted their best growth in a decade and the unemployment rate retreated back to record lows. Overall, the U.S. consumer is still very healthy today.The global consumer is healthy, too. China consumer confidence is bouncing back. Global consumer confidence is stabilizing. U.S.-China trade tensions are easing. FX headwinds are becoming less severe. As a result, the global consumer backdrop remains healthy enough to support continued growth at Skechers. The Internals Are FavorableMore importantly, the internals at Skechers remain healthy, and point to continued growth at the company for the foreseeable future.Ground-level trends remain favorable, such as the chunky sneaker and dad-look trends, and point to continued growing global popularity of the Skechers brand. Search-interest trends remain favorable on a domestic and global basis. Web traffic share continues to climb. Overall, the fundamentals imply continued healthy top-line growth for Skechers on a global basis.Concurrently, gross margins have continued on their multi-year uptrend, while the opex rate is finally falling back. Management expects this opex rate moderation to persist, and so long as it does, margins should remain on an uptrend.In the big picture, then, current trends and data points suggest that Skechers will remain a strong revenuer grower with healthy margin expansion potential for the next several quarters. The Valuation Is Still DiscountedEven more importantly, the valuation underlying SKX stock remains discounted relative to peers.Skechers trades at just 15 forward earnings. For comparison purposes, Nike (NYSE:NKE) and Lululemon (NASDAQ:LULU) both trade at over 30 times forward earnings. Under Armour (NYSE:UAA) trades at over 60 times forward earnings. V.F. Corp (NYSE:VFC), the owner of Vans, trades at 22 times forward earnings.Further, most apparel retail stocks trade around 18 times forward earnings. The average forward P/E multiple across the entire consumer discretionary sector is 20. For footwear stocks, it's nearly 30.Overall, with a forward P/E ratio of just 15, SKX stock continues to trade at a sizable discount to essentially every comp in the market. Upside to $40 Is Fundamentally SupportedMost importantly, the fundamentals support upside in SKX stock to $40.Given historical growth trends, its still relatively small revenue base, and red-hot growth in the international segment, I think Skechers projects as a mid- to high-single-digit revenue grower over the next several years. During that stretch, gross margins should continue on their multi-year uptrend, since there are no obstructions in the foreseeable future, while the opex rate should normalize lower as revenue growth outpaces expense growth.Under those assumptions, I think Skechers can do about $4 in EPS by fiscal 2025. Based on a market average 16 forward multiple, this equates to a fiscal 2024 price target for SKX stock of $64. Discounted back by 10% per year, that equates to a fiscal 2019 price target of roughly $40. Bottom Line on SKX Stock * 7 High-Yield Telecom Stocks to Avoid Skechers stock was one of my top picks for 2019. It's early March, and the stock is already up more than 40% year to date. But this rally isn't over. Skechers remains an underappreciated and undervalued athletic footwear stock with plenty of room to run higher as favorable fundamentals continue to converge on a discounted valuation in 2019. This dynamic should drive SKX stock to $40 by the end of the year.As of this writing, Luke Lango was long SKX and NKE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks Already Rewarding Shareholders In 2019 * The 10 Best-Performing ETFs This Year * 7 Stocks That Should Be Worried About a Data Dividend Compare Brokers The post The 4 Big Reasons to Buy Skechers Stock appeared first on InvestorPlace.
The second such office in the country helped Colorado recruit national companies, including VF, and events in the sector.
Anyone looking for an indication of VF Corp.’s coming relocation to Denver need only have been at the Metro Denver Economic Development Corp.’s annual awards luncheon Tuesday — when the outdoor-apparel giant received the organization’s top award even before it arrives to town. In a luncheon that was tinged with both community magnanimity and political overtones, the organization that leads job recruitment and retention for a nine-county Front Range area gushed most exhaustively over VF Corp. (NYSE: VFC), which plans to relocate its headquarters from Greensboro, North Carolina, to temporary digs in the Denver Tech Center this summer. Metro Denver EDC officials presented the company with the New Frontier Award, signifying the ground-breaking commitment to the region’s economy.
According to a source and multiple websites, Centric is occupying space at 4620 Grandover Parkway near Grandover Resort. Andy Zimmerman, the developer of Gateway Center, told Triad Business Journal Monday that Centric is occupying space in Greensboro through a "transition agreement." "This is a big one," Matheny told TBJ following notice of a March 15 public hearing on the issue.
Builders see challenges in the Triad housing market, but moderate growth is largely keeping prices in check.
The company, which is moving its headquarters from North Carolina to Denver, signed a deal for the rebranded race.
VF Corporation, a global leader in branded lifestyle apparel, footwear and accessories, has been recognized as one of the 2019 World’s Most Ethical Companies by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices. This is VF’s third consecutive year to receive the distinction. “We’re proud to once again be recognized as one of the world’s most ethical companies,” said Steve Rendle, VF’s Chairman, President and CEO.
Outdoor and footwear brands exhibited strength in the fourth quarter, and the positive trend appear to have continued into Q1. VF Corp (NYSE: VFC )'s stock seems undervalued ahead of the Jeanswear segment ...
Greensboro-based VF Corp. (NYSE:VFC) is closing its Greenville, South Carolina, logistics facility, laying off approximately 150 employees, the company confirmed to Triad Business Journal. According to a filing under the Worker Adjustment and Retraining Notification Act, the closure date is April 13. VF spokeswoman Julia Burge told TBJ that the facility provides logistics and shipping services to support the transportation of raw materials, machinery, offices supplies and finished products between internal manufacturing operations and distribution centers for its Jeanswear and other VF brands.
The planned departure of the Triad's two leading Fortune 500 companies continues a long trend of the Triad losing the HQ presence of nationally recognized companies. Of the 25 companies on TBJ's local public companies list a decade ago, only eight remain public and based in the region.