SAN FRANCISCO, CA – Levi Strauss & Co. (NYSE:LEVI) disclosed in a recent SEC filing that Tracy Layney, the current Executive Vice President and Chief Human Resources Officer, will depart from her role on or about October 11, 2024. The company, known for its apparel and denim products, stated that Layney's exit is part of an organized transition plan.
According to the filing dated September 17, 2024, Layney will begin a period of garden leave from her specified departure date until February 2, 2025. During this time, she will continue to receive her regular pay and will remain eligible for the vesting of outstanding equity awards. Additionally, Layney has agreed to be available for consultation with Levi Strauss & Co. throughout her garden leave.
The terms of Layney's departure are contingent upon her signing and not revoking a general release agreement. If she complies, she will be entitled to benefits as outlined in the Senior Executive Severance Plan, which has been previously detailed in the company's SEC filings.
Levi Strauss & Co. has not announced a successor for Layney's position at the time of the report. The company's SEC filing was signed by Senior Vice President and General Counsel, David Jedrzejek, affirming the accuracy and authorization of the report's contents.
This transition comes at a time when Levi Strauss & Co. continues to navigate the competitive apparel industry, maintaining its position as a longstanding player in the market. The company's stock, traded on the New York Stock Exchange under the ticker LEVI, has not shown immediate market reaction to the news of Layney's departure.
In other recent news, Levi Strauss & Co. reported significant growth in its second quarter of fiscal 2024, with a 9% rise in constant currency revenue and gross margins reaching a record 60.5%. This financial performance was buoyed by an 11% growth in the direct-to-consumer channel, and a 2% uptick in the Levi's brand. Despite a decline in the global wholesale business, the company's financial health was further supported by an adjusted diluted earnings per share of $0.16, surpassing expectations.
TD Cowen maintained a positive outlook on Levi Strauss, reiterating a Buy rating. The firm cites the company's globally diversified growth and direct-to-consumer initiatives as beneficial, and noted a long-term margin expansion to 15% as an attainable goal. Other firms such as UBS and Stifel also reiterated a Buy rating, with Stifel increasing its price target for Levi Strauss from $24 to $28.
Meanwhile, political unrest in Bangladesh has led to the closure of garment factories, potentially impacting global apparel retailers. The country, being the third-largest clothing exporter globally, contributed to $38.4 billion in clothing exports in 2023. Retailers such as H&M, Inditex (BME:ITX), Fast Retailing, Canadian Tire, and Carrefour (EPA:CARR), who have substantial connections with Bangladeshi suppliers, along with American manufacturers like VF Corp (NYSE:VFC), Levi Strauss, and Target, may experience disruptions in their supply chains.
InvestingPro Insights
As Levi Strauss & Co. prepares for the departure of their Chief Human Resources Officer, investors may be evaluating the company's financial health and stock performance. According to the latest data from InvestingPro, Levi Strauss & Co. has a market capitalization of $7.81 billion and is trading at a price-to-earnings (P/E) ratio of 54.46, which is higher than the industry average, suggesting that the stock may be trading at a premium.
InvestingPro Tips highlight that Levi Strauss & Co. has consistently raised its dividend for 5 consecutive years, showcasing commitment to returning value to shareholders. However, it is important to note that 11 analysts have revised their earnings estimates downwards for the upcoming period, which could indicate potential headwinds for profitability. Despite these concerns, the company remains profitable, with a gross profit margin of 57.99% over the last twelve months as of Q2 2024.
For investors seeking more detailed analysis, there are additional InvestingPro Tips available for Levi Strauss & Co. at https://www.investing.com/pro/LEVI, which can provide further insights into the company's financials and stock performance.
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