Levi's DTC Push Stumbles 👖

Levi Strauss $LEVI ( ▼ 4.97% ) reported mixed financial results on Wednesday, including concerning results in a business unit. The stock fell 1.85% in after-hours trading.

Financials: Levi reported earnings of 48 cents per share last quarter, better than expected. But revenue only reached $1.6 billion, which was lower than expected.

Powering the Story: The company’s direct-to-consumer (DTC) business stumbled during the quarter. While DTC revenue jumped 2%, it fell 1% in the U.S. and 2% in Europe. DTC sales in Asia rose 8%. Overall DTC comparable sales growth was flat.

Quote: “While our direct-to-consumer business fell short of our internal expectations, we moved quickly to address the shortfall and are encouraged by the strength we are seeing heading into the holiday season.” - CEO Michelle Gass.

Outlook: Levi raised its earnings outlook for the full year on Wednesday, but it also trimmed its sales growth outlook. The company now sees sales growth of 7%, down from the previous range of 7% to 7.5%. The DTC business unit is at least partially to blame.

Early Bird’s Nest Egg Gains: Levi’s DTC weakness is mainly a traffic problem. Its U.S. back-to-school marketing missed the trend shoppers wanted, while unusually warm weather hurt European store visits.

It’s a sharp slowdown, but not a collapse of the DTC business.

Final Thoughts: It’s more of the same for Levi. The stock was already down 6% this year.

Built for the unstoppable.

The Dell Pro powered by Intel® Core™ Ultra with Intel vPro® adjusts power usage based on how you work, so your battery life never slows you down.

Explore More

Notables

Notable Earnings Today: PepsiCo (Nasdaq: PEP), Helen of Troy (Nasdaq: HELE), AngioDynamics (Nasdaq: ANGO), Byrna Technologies (Nasdaq: BYRN), NovaGold Resources (NYSE American: NG), Tilray Brands (Nasdaq: TLRY).

Notable IPOs Today: Southern Cross Acquisition II Corp. Ordinary Shares (Nasdaq: SCAT).

Notable Equity Crowdfunding Campaigns Ending Today: Field Store House (Wefunder), Foudys (Crowdcube), Chestnut Bio Polymers (Crowdcube).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Lululemon’s Management Shakeup

Photo by P. L. on Unsplash

Lululemon Athletica $LULU ( ▼ 1.85% ) announced a new management shakeup on Wednesday to try and turn things around. The stock ticked down 0.098% in after-hours trading.

Details: The company appointed a new chief product officer and chief operating officer. There are also plans to search for a new chief brand officer, chief communications officer, and chief technology officer.

Background: Heidi O'Neill just joined as CEO. Also, investors were not pleased with the company’s most recent financial results.

Final Thoughts: Lululemon’s stock is down 56% this year, and it is down 76% over the last 5 years.

Applied Digital Posts Good Results

Applied Digital $APLD ( ▼ 6.04% ) jumped 4.75% in after-hours trading on Wednesday after posting better-than-expected financial results.

Financials: Applied Digital reported a loss of 1 cent per share in the past quarter and revenue of $341.9 million. Both were better than expected.

Final Thoughts: It’s a recovery for a stock that had been down 15% this year.

The 2026 Stock Market Playbook: 63 AI Prompts for Investing in Robots, Energy, and the New Economy

Stop guessing and start prompting. This practical guide provides 63 high-impact AI chatbot prompts specifically designed for the 2026 industrial economy. From stress-testing investment narratives t...

$4.99 usd