Beyoncé Can't Save Levi Strauss

Plus, Nvidia's "insane" chip demand.

October 03, 2024

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Today is Thursday, October 3, 2024.

The Early Bird Index today is 72.82.

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Beyoncé Can't Save Levi Strauss

Levi Strauss (NYSE: LEVI) fell 10.92% in after-hours trading on Wednesday after posting mixed financial earnings results.

Financials: Levi Strauss reported earnings of 33 cents per share in the past quarter, which was better than expected. Revenue was $1.5 billion, which was lower than expected.

Powering the Story: Despite launching a new marketing campaign with the global icon Beyoncé (which the company bragged about during its earnings results), investors were not impressed with the financial state of the company.

Details: The Dockers brand saw revenue drop by 15% in the past quarter. It dragged down the overall business and now the company is exploring a potential sale of Dockers. Levi Strauss lowered its overall company sales guidance.

Early Bird’s Nest Egg Gains: Dockers, the iconic khaki brand owned by Levi Strauss, has been facing some challenges in recent years,

  • Dockers has faced increased competition from other low-cost brands in the casual and business casual clothing segments.

  • The brand, which rose to prominence in the 1980s and became synonymous with "casual Fridays," is now perceived as something that older generations wear. It is also struggling in international markets.

Final Thoughts: Before these results, Levi Strauss was up 29% this year.

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Notables

Notable Earnings Today: Constellation Brands (NYSE: STZ), AngioDynamics (Nasdaq: ANGO).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: AJNA BioSciences (Wefunder), Mae's (Honeycomb).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), S&P Global Services PMI (9:45 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI / Prices / Employment (10:00 a.m. ET), Factory Orders (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Nvidia’s "Insane" Chip Demand

Shares of Nvidia (Nasdaq: NVDA) ticked up 1.51% in after-hours trading on Wednesday after CEO Jensen Huang delivered positive comments on CNBC.

Details: Huang said Nvidia is seeing “insane” demand for its new Blackwell AI chips.

Background: Launching this quarter, Blackwell is said to be Nvidia’s most powerful chip.

Final Thoughts: Increased demand and sales could do wonders for Nvidia, which is already up 146% this year.

Ethereum’s Slump Continues

The price of Ethereum declined about 4% on Wednesday, continuing a recent downturn for the popular digital asset.

Details: Ethereum dropped on Wednesday due to a market-wide cryptocurrency selloff, increased global tensions, and an uptick in liquidations.

Final Thoughts: Ethereum is down 8% in the last 7 days.

Gaining Popularity: The Rise of Index Investing in Crypto (CoinDesk)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.