Week Ahead on Wall Street
By: Anneken Tappe · October 02, 2023 · Reading Time: 3 minutes
Levi’s Bold Restructuring
Levi Strauss has reinvented itself in the past decade. But cuts to its profit outlook and plans for CEO Charles Bergh to step down are some clouds on the horizon.
In 2011, Charles Bergh took over as CEO of the then-struggling Levi Strauss (LEVI). He promptly fired over half of the company’s top executives, recently saying he should have dropped the wrong people even faster.
The fiscal equivalent of turning an old pair of jeans into crisp fresh cutoffs may sound harsh, but it apparently worked. By 2017, the denim apparel brand had turned around, posting its highest annual revenue growth in decades at 8%. In the following year, the company posted a 14% year-over-year revenue jump.
However, Levi’s has struggled once again post-pandemic, and recently cut its 2023 profit outlook. With Bergh planning to step down next year, will his predecessor enact a similarly bold plan?
Hop on the company’s earnings call on Thursday to hear how the 170-year-old brand plans to make it another century.
Economic Data
It’s a jobs week! Between August job openings coming on Tuesday, the ADP employment report on Wednesday, weekly jobless claims Thursday and the government’s September jobs report Friday, there is plenty for investors to digest. America’s labor market continues to be tight after months of hawkish monetary policy by the Fed.
Other data of note includes looks at the state of business activity in the manufacturing and services sectors, and an update on the U.S. trade deficit in August.
Earnings
The week kicks off with McCormick & Company (MKC), owner of McCormick spices and Frank’s RedHot sauce set to announce earnings. It will look to spice up its strong Q2, in which sales rose 8% annually.
On Tuesday, egg producer Cal-Maine Food (CALM) will debrief its latest quarter and likely discuss its recent agreement to acquire the assets of its century-old peer company Fassio Egg Farms.
On Wednesday, earnings reports will come in from lighting firm Acuity Brands (AYI) and healthtech company Accolade (ACCD). Accolade recently announced plans to expand its care delivery team.
Thursday will be the busiest day of the week with reports from Levi Strauss (LEVI), Modelo and Corona maker Constellation Brands (STZ), and Conagra (CAG).
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