Levi Strauss Tariff Preparation

And, health stocks get Medicare boost.

April 08, 2025

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Today is Tuesday, April 8, 2025.

The Early Bird Index today is 55.67

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Levi Strauss Tariff Preparation

Although its financial results on Monday were mixed, Levi Strauss $LEVI ( ▼ 1.25% ) still jumped 7.41% in after-hours trading.

Financials: Levi Strauss reported earnings of 38 cents per share in the past quarter, which was better than expected. Revenue reached $1.5 billion, which was lower than expected.

Details: In its earnings release, the company maintained its financial outlook but excluded the impact of the recent tariffs.

Powering the Story: Levi Strauss loaded up on inventory ahead of the tariffs. It also touted its strong balance sheet during its earnings release.

Quote: “While we recognize that we are operating in an uncertain environment, our global footprint, strong margin structure, and agile supply chain position us to navigate the balance of the year and beyond.” - CEO Michelle Gass.

Early Bird’s Nest Egg Gains: Levi Strauss's decision to increase inventory and tighten its supply chain is a strategic move to mitigate the risks associated with newly imposed tariffs.

  • By loading up on inventory before tariffs take effect, Levi Strauss avoids the immediate cost increases on imported goods that would result from higher tariffs.

  • Tightening the supply chain ensures that Levi Strauss can respond quickly to disruptions caused by tariffs, such as delays or increased costs in sourcing materials.

Final Thoughts: Levi Strauss was down 22% this year. The company is trying to turn things around.

Notables

Notable Earnings Today: WD-40 (Nasdaq: WDFC), Tilray (Nasdaq: TLRY), Cal-Maine Foods (Nasdaq: CALM), RPM (NYSE: RPM), Aehr Test Systems (Nasdaq: AEHR), Kura Sushi USA (Nasdaq: KRUS), Mama’s Creations (Nasdaq: MAMA).

Notable IPOs Today: Solesence, Inc. Common Stock (Nasdaq: SLSN), Friedman Industries Inc. Common Stock (Nasdaq: FRD), FatPipe, Inc. Common Stock (Nasdaq: FATN).

Notable Equity Crowdfunding Campaigns Ending Today: Lukas Behavioral Health (SMBX), Ainnocence (StartEngine).

Notable Economic Events Today: EIA Short-Term Energy Outlook (12:00 p.m. ET), API Weekly Crude Oil Stock (4:00 p.m. ET).

Health Stocks Get Medicare Boost

Several healthcare stocks jumped in after-hours trading on Monday after the Centers for Medicare & Medicaid Services announced payment increases to providers.

Details: Payments from the government to medicare providers will increase by an average of 5.06% next year, up from an increase of 2.83% this year.

Stock Price: Humana $HUM ( ▼ 2.36% ) surged 11.30% in after-hours trading, CVS Health $CVS ( ▲ 4.11% ) jumped 6.50%, and UnitedHealth Group $UNH ( ▼ 2.62% ) grew by 5.81%.

Final Thoughts: Among those stocks, CVS is the leader this year with a 44% gain.

Broadcom’s New Stock Buyback

Semiconductor company Broadcom $AVGO ( ▲ 2.53% ) ticked up 3.15% in after-hours trading on Monday after announcing a stock buyback of up to $10 billion through the end of the year to boost the stock price.

Final Thoughts: The move was celebrated by shareholders, although the stock is down 33% in 2025.

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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.