Investors in Levi Strauss & Co. are reeling after the company slashed its full-year revenue growth forecast and announced it’s exploring strategic alternatives for its Dockers brand, which could lead to a sale. Shares plummeted 11% in premarket trading. The Dockers brand has been struggling, with a 15% revenue decline in the latest quarter and an 8.4% drop in sales for the nine months ended August 25.
Meanwhile, Tesla has discontinued its most affordable Model 3 variant, the Standard Range Rear-Wheel Drive, due to rising costs associated with tariffs on Chinese imports. The move makes the Long Range RWD Model 3 the cheapest option available, priced at $42,490 before the $7,500 tax rebate.
In other news, Boeing’s largest union is urging the company’s CEO to engage in talks after the aviation giant cut off health benefits for 33,000 striking workers. The union is seeking a 40% pay hike over four years, along with other demands.
On the earnings front, Levi Strauss reported an adjusted profit of $0.33 per share, up 18% from a year ago, but total revenue missed expectations by $30M. The company’s gross profit margin increased by 440 basis points to 60.0% due to lower product costs and favorable channel and brand mix.
Looking ahead, markets are expected to open lower, with Dow, S&P, and Nasdaq futures all in the red. Crude oil is up 1.7% at $71/barrel, while Bitcoin is down 1.7% at $60,000. In global markets, the FTSE 100 is up 0.3%, and the DAX is down 0.6%.
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