Levi (NYSE:LEVI) shares dropped more than 16% since last Thursday, when the company reported its Q1 results, with EPS of $0.34 coming in above the Street estimate of $0.32. Revenue was $1.7 billion, compared to the Street estimate of $1.62 billion.

The company reported a significant reduction in inventory levels. However, on a negative note, gross margins fell 360 basis points year-over-year, coming in at 55.8%, missing the 56.8% Street estimate.

The company reiterated its fiscal 2023 guidance, expecting EPS of $1.30-$1.40, compared to the Street estimate of $1.33, and revenue of $6.3-6.4 billion, compared to the Street estimate of $6.31 billion.

Following the results, BofA Securities lowered the price target on the company to $16.00 from $18.00 while maintaining a Neutral rating. Meanwhile, Wells Fargo cut its price target to $18.00 from $20.00 while maintaining an Overweight rating.