While some retail brands face headwinds, live events and sports entertainment continue to draw big crowds. According to Bank of America (BAC), three retail and entertainment stocks show plenty of room for growth after earnings. The companies in focus are Levi Strauss (LEVI), TKO Group (TKO), and Live Nation Entertainment (LYV). Each update highlights a different side of today’s spending habits.
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Levi Strauss
Levi Strauss posted mixed results as sales declined, but profitability held steady. Revenue came in at $1.4 billion, down 8% from last year, while earnings per share topped estimates at $0.22. Organic revenue increased by 9%, signaling strength in key channels. Chief Executive Michelle Gass said, “We are navigating a challenging retail environment while investing in our key brands.” The company is trimming costs and leaning on direct-to-consumer sales to offset weaker wholesale demand. Looking ahead, Levi projects full-year growth between 4.5% and 5.5%, reflecting a cautious but steady outlook. On the Street, LEVI stock boasts a Strong Buy consensus, based on the ratings of 10 analysts.
TKO Group
Another name on BofA’s list is TKO Group, the parent of UFC and WWE, which posted strong gains fueled by packed arenas and media deals. Revenue rose 10% to $1.31 billion, while adjusted EBITDA jumped 75% to $526 million, with margins improving to 40%. “We are seeing early benefits from our combined scale,” said CEO Ari Emanuel. Highlights include a new ESPN media rights deal for WWE, record-setting events like SummerSlam, and a 39% rise in UFC partnership revenue. For the full year, TKO expects revenue between $4.63 billion and $4.69 billion and adjusted EBITDA of up to $1.56 billion. On the Street, TKO stock boasts a Strong Buy consensus, based on the ratings of 13 analysts.
Live Nation Entertainment
Live Nation delivered another record quarter as concert demand stayed strong. Revenue surged 20% to $7 billion, driven by robust ticket sales and higher on-site spending. “Fans continue to prioritize live events, and we see this trend sustaining,” said President Joe Berchtold. Live Nation hosted roughly 14,292 events during the April-to-June period, down about 2.6% from last year. Even so, attendance was strong, with 44.2 million fans turning out for shows, nearly double the 22.3 million reported in the prior quarter. Ticket sales also edged higher, reaching an estimated 155.8 million for the quarter, compared with 155.1 million in the first three months of the year.
Consequently, LYV’s management is bullish on the next quarter, with projections for double-digit growth in stadium events and strong sponsorship demand, supported by global expansion in Latin America and Asia. Like the other two stocks, LYV stock also boasts a Strong Buy consensus, based on the ratings of 14 analysts.
