Levi Strauss stock falls to see worst day in six months

Yahoo Finance Live discusses the fall of Levi stock as the retailer reports a decrease in quarterly profit.

Video Transcript

DAVE BRIGGS: Levi's shares closing out their worst intraday performance ever as the retailer's inventory continues to remain high and the company's quarterly profit decline from the same period from a year ago.

SEANA SMITH: Yeah, and, Dave, when you take a look at this name, I mean, it's pretty incredible to see today's drop, off just about 16%, the biggest drop that we have seen there. Inventory levels obviously still an issue here. They are still high, but we are seeing a little bit of an improvement in terms of also digging into these numbers, the company did have better sales, but those lower margins clearly an issue here for the Street.

Promotional activity obviously playing into the result that we did see. Levi's likely forced to discount maybe a larger portion than they had initially anticipated of some of their merchandise in order to clear it from the shelves and try to get a better handle on those inventory issues.

DAVE BRIGGS: That is a huge drop when you consider the numbers don't appear that bad, at least on the surface, though the margin contraction related to the inventory issues, 360 basis points.

Interesting point from their CEO in the call. Says Bad Bunny was a huge catalyst for them, wearing vintage 501s to kick off the Grammys. 3 billion impressions globally for that video. Some classic 501s from Bad Bunny.