SAN FRANCISCO - Levi Strauss & Co. (NYSE: NYSE:LEVI), a global leader in denim and casual wear, has announced the appointment of Daniel Geballe to its board of directors, effective April 26, 2025. Geballe will join the board following the retirement of current member David Friedman, who will step down upon reaching the mandatory retirement age.
Geballe brings a wealth of experience to the role, currently serving as a managing director at SJF Ventures, focusing on early-stage companies with positive social and environmental impacts. His previous experience includes positions at The Corporation for Enterprise Development and Fisher Investments. With academic credentials from Yale University and an M.B.A. from the Stanford Graduate School of Business, Geballe's expertise encompasses both environmental management and business administration.
Michelle Gass, CEO and president of LS&Co., expressed her enthusiasm for Geballe's upcoming contribution to the board, highlighting his commitment to social and environmental responsibility. Gass anticipates that Geballe's experience will be instrumental in driving the company's growth while maintaining their "profits through principles" philosophy.
Geballe also holds the position of Vice President and a member of the Board of Directors of the Levi Strauss Foundation, where he chairs the Finance Committee. He expressed pride in joining LS&Co.'s board and is eager to contribute to the company's future profitable growth.
Levi Strauss & Co. is renowned for its significant global impact, leading with its values and boasting a strong presence in over 110 countries. The company reported net revenues of $6.2 billion in 2023 and continues to expand its reach through various retail channels, including a network of approximately 3,200 dedicated stores and shop-in-shops.
This board appointment is based on a press release statement from Levi Strauss & Co. and reflects the company's ongoing commitment to leadership in corporate responsibility and growth.
In other recent news, Levi Strauss & Co. has been the subject of multiple analyst revisions following its recent earnings report. Morgan Stanley reduced its price target for the company to $19, citing concerns about short-term sales risks and potential negative mid-term estimate revisions. Simultaneously, TD Cowen lowered its price target from $25.00 to $23.00 despite maintaining a Buy rating on the stock.
The company recently reported a 2% increase in net revenues and a significant 5% global growth for the Levi's brand in its third-quarter fiscal 2024 earnings call. The company also highlighted record Q3 gross margins of 60% and a significant expansion in adjusted EBIT margin. Furthermore, Levi Strauss announced the potential sale of its Dockers brand following a 15% decline in Dockers' sales in the third quarter.
Levi Strauss has also been navigating logistical challenges due to an ongoing dockworker strike, rerouting shipments through West Coast ports and utilizing air freight to ensure timely delivery of products. These are among the recent developments that investors of Levi Strauss & Co. should note.
InvestingPro Insights
As Levi Strauss & Co. (NYSE: LEVI) welcomes Daniel Geballe to its board of directors, investors may find additional value in examining the company's financial health and market performance. According to InvestingPro data, LEVI boasts a market capitalization of $7.68 billion, reflecting its significant presence in the global apparel market.
The company's commitment to shareholder value is evident in its dividend policy. An InvestingPro Tip highlights that LEVI has raised its dividend for 6 consecutive years, demonstrating a consistent return to investors. This aligns well with the company's "profits through principles" philosophy mentioned in the article. Currently, LEVI offers a dividend yield of 2.73%, which may be attractive to income-focused investors.
LEVI's financial performance shows promise, with revenue for the last twelve months reaching $6.16 billion, slightly lower than the $6.2 billion reported for 2023 in the article. The company maintains impressive gross profit margins, as noted by another InvestingPro Tip, with a gross profit margin of 59.09% for the last twelve months. This strong margin suggests efficient cost management and pricing power, which could support the company's growth initiatives under new board leadership.
It's worth noting that LEVI is trading at a P/E ratio of 49.87, which some investors might consider high. However, when adjusted for the last twelve months, the P/E ratio drops to 17.63, potentially indicating a more reasonable valuation relative to earnings.
For investors seeking a deeper understanding of LEVI's financial position and growth prospects, InvestingPro offers 8 additional tips, providing a more comprehensive analysis to inform investment decisions.
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