Levi's multiple can move up as wholesale business stabilizes, says Guggenheim » 09:2701/2301/23/20
Guggenheim analyst Robert…
Guggenheim analyst Robert Drbul said he believes U.S. wholesale growth rates for Levi Strauss (LEVI) have an opportunity to meaningfully improve in the second quarter of 2020 and he believes Levi's multiple can move back up as its U.S. wholesale business stabilizes. He notes that the company faces easier comparisons than it did in 2019 and he believes expanded distribution with traffic-driving retailers like Target (TGT) and more premium retailers such as Nordstrom (JWN) should be a tailwind, while Levi Strauss should also face less of a headwind from challenged partners such as J.C. Penney (JCP) and Sears. Drbul keeps a Buy rating and $26 price target on the stock.
|Over a week ago|
Genesco closes Togast acquisition, sees accretion in FY21 earnings » 17:0501/0201/02/20
Genesco (GCO) announced…
Genesco (GCO) announced that it has closed the acquisition of the U.S. assets of New York-based Togast, previously announced on December 18. Togast is a company that specializes in the design, sourcing and sale of licensed footwear. The acquisition is expected to be accretive to Genesco's fiscal 2021 earnings. As planned, at closing, Genesco also entered into a new U.S. footwear license agreement for men, women and children for Levi's (LEVI), as well as renewed and extended its men's Dockers footwear license. The Togast purchase expands Genesco's portfolio to include footwear licenses for G.H. Bass & Co., ADIO and FUBU, among others.
|Over a month ago|
Genesco to buy footwear licensee Togast enters into Levi's footwear license pact » 17:2112/1812/18/19
Genesco (GCO) announced…
Genesco (GCO) announced it has entered into a definitive asset purchase agreement to acquire New York-based Togast, which specializes in the design, sourcing and sale of licensed footwear. The purchase price for the acquisition is $33.7M in cash at closing, plus up to an additional $34M in cash contingent on the achievement of financial targets over the next four years. The purchase price paid at closing is expected to be funded from cash on hand. The transaction, which is subject to customary closing conditions, is expected to be completed in January 2020, and is expected to be accretive to next year's earnings. Prior to the acquisition, Togast served as distributor for Levi's footwear in the United States. Commensurate with the closing of this transaction, Genesco will enter into a new U.S. footwear license agreement for men, women and children for Levi's(R), as well as renew and extend its men's Dockers(R) footwear license. The addition of privately owned Togast brings to Genesco new sources of revenue and synergistic product development and offshore sourcing capabilities, which complement and enhance Genesco's Licensed Brands division. In addition, the Togast purchase expands Genesco's portfolio to include footwear licenses for G.H. Bass & Co., ADIO and FUBU, among others. Genesco Chairman, President and Chief Executive Officer Robert J. Dennis said, "The acquisition of Togast adds scale to our successful licensed brands platform. The combination of our licensed business with Togast's strengths furthers our footwear focused strategy by creating an even more robust platform within Genesco that can serve multiple tiers of distribution. We are also excited to add the Levi's(R) footwear license to our portfolio and expand upon our long-standing business relationship with Levi Strauss (LEVI) , which dates back to 1991." Genesco Licensed Brands President Andy Gilbert said, "We are pleased to broaden our portfolio of licensed footwear brands. We immediately recognized the sourcing capabilities and corresponding synergies with Licensed Brands that we would achieve through the acquisition of Togast, and I am personally excited to welcome Tony LoConte and his team to the Genesco family."
Levi Strauss price target raised to $22 from $20 at JPMorgan » 08:4912/1312/13/19
JPMorgan analyst Matthew…
JPMorgan analyst Matthew Boss raised his price target for Levi Strauss to $22 from $20 and keeps an Overweight rating on the shares after hosting meetings with management. The key theme was "confidence" in the company's mid-single-digits sales and high-single to low-double-digits earnings outlook algorithm, both multi-year and for fiscal 2020, Boss tells investors in a research note.
Levi Strauss CEO: I believe in the importance of innovation » 18:3111/1811/18/19
In an interview on…
In an interview on CNBC's Mad Money, Levi Strauss CEO Chip Bergh said: Our innovation center is now close to our headquarters... The innovation team is one of our highest performing segments... Europe has been growing strongly... It's about 50% DTC/50% wholesale... The brand is on fire globally... U.S wholesale is less than 30% of our total global business... We are the opposite of fast fashion.
Alibaba reports 11.11 gross merchandise volume grew 26% year-over-year to $38.4B » 14:1711/1111/11/19
BABA, AAPL, EL, GPS, LRLCY, LEVI, NSRGY, NKE, VFC, UA, UAA
Alibaba Group (BABA)…
Alibaba Group (BABA) confirmed in a press release that it generated RMB268.4B, or $38.4B, of gross merchandise volume, or GMV, on November 11, 2019, an increase of 26% compared to 2018. Total GMV settled through Alipay was RMB268.4B, or $38.4 B in U.S. dollars. There were more than 200,000 participating brands, 1 million new products launched for 11.11, and Cainiao Network processed 1.3 billion delivery orders, the company noted. The top five countries selling to China through its cross-border platforms by GMV were Japan, United States, South Korea, Australia, and Germany. 299 brands surpassed RMB100M, or $14.3M, and 15 of those brands surpassed RMB1B, or $143M in GMV, including Apple (AAPL), Bose, Estee Lauder (EL), Gap (GPS), H&M, L'Oreal (LRLCY), Levi's (LEVI), MUJI, Nestle (NSRGY), Nike (NKE), Philips, The North Face (VFC), Under Armour (UAA) and Uniqlo, according to Alibaba.
|Over a quarter ago|
Levi Strauss EVP Love sells 204K shares of common stock » 17:5210/2210/22/19
In a regulatory filing,…
In a regulatory filing, Levi Strauss disclosed that its Executive Vice President David Love sold 204.1K shares of common stock on October 21st-22nd. The total transaction size was $3.5M.
Fly Intel: Top five analyst initiations » 10:2110/2210/22/19
AMCR, LEVI, KTB, SNR, BPMC, SPXC
Catch up on today's…
Catch up on today's top five analyst initiations with this list compiled by The Fly: 1. Amcor (AMCR) initiated with an Underperform at Jefferies. 2. Levi Strauss (LEVI) initiated with an Outperform at Macquarie while Kontoor Brands (KTB) was initiated with a Neutral. 3. New Senior Investment (SNR) initiated with an Equalweight at Capital One. 4. Blueprint Medicines (BPMC) resumed with an Outperform at JMP Securities. 5. SPX Corporation (SPXC) initiated with a Buy at Seaport Global. This list is just a portion of The Fly's analyst coverage. To see The Fly's full Street Research coverage, click here.
Levi Strauss initiated with an Outperform at Macquarie 16:0810/2110/21/19
Fly Intel: Wall Street's top stories for Friday » 16:2210/1810/18/19
BA, ORCL, KO, AXP, JNJ, M, LB, GPS, LEVI, DERM, ETFC, GIL, TEAM
U.S. earnings have…