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Levi Strauss & Co
(NYSE:LEVI)
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Rating:73Outperform
Price Target:
$27.00
▲(17.90% Upside)
Action:Reiterated
Date:07/09/26
LEVI scores well primarily on improving financial performance (rebounding margins and solid free cash flow) and a supportive earnings update with raised FY26 guidance. Technicals also reinforce a constructive setup with a clear uptrend and positive momentum. Valuation is fair rather than compelling, and leverage plus tariff/distribution-transition uncertainty remain the key offsets.
Positive Factors
Direct-to-Consumer & E-commerce
A majority-DTC mix with sustained comp-store growth and rapid e‑commerce adoption increases margin capture, customer data depth, and recurring revenue potential. Over the next 2–6 months, this durable channel shift supports higher gross margins, better pricing control, and more predictable unit economics.
Negative Factors
Elevated Financial Leverage
Net leverage near parity with equity constrains strategic flexibility and increases sensitivity to demand shocks or interest‑rate moves. Even with strong ROE, limited balance‑sheet cushion can force tighter capital allocation or raise refinancing risk if revenues or cash flow weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
Direct-to-Consumer & E-commerce
A majority-DTC mix with sustained comp-store growth and rapid e‑commerce adoption increases margin capture, customer data depth, and recurring revenue potential. Over the next 2–6 months, this durable channel shift supports higher gross margins, better pricing control, and more predictable unit economics.
Read all positive factors
Levi Strauss & Co Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures profit from each business segment after operating expenses, indicating which segments are most efficient and contribute most to the bottom line.
Measures profit from each business segment after operating expenses, indicating which segments are most efficient and contribute most to the bottom line.
Data provided by:
The Fly
The FlyLevi Strauss & Co (LEVI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.37B
Dividend Yield2.58%
Average Volume (3M)2.37M
Price to Earnings (P/E)17.7
Beta (1Y)1.18
Revenue Growth2.61%
EPS Growth30.39%
CountryUS
Employees18,700
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)1.38
Shares Outstanding98,176,900
10 Day Avg. Volume2,565,202
30 Day Avg. Volume2,365,866
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)3.87
Price to Sales (P/S)1.40
P/FCF Ratio27.19
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue1.44
Enterprise Value/Gross Profit2.34
Enterprise Value/Ebitda10.53
Forecast
1Y Price Target
$28.09Price Target Upside22.67% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering11
EPS Forecast (FY)1.51
Revenue Forecast (FY)$6.70B
Levi Strauss & Co Business Overview & Revenue Model
Company Description
Levi Strauss & Co. stands as a prominent global clothing enterprise, actively involved in the conceptualization, promotion, and distribution of an extensive collection of apparel and related accessories. Their comprehensive product line includes d...
How the Company Makes Money
Levi Strauss & Co. generates revenue primarily from selling branded apparel and accessories through two main channels: (1) wholesale and (2) direct-to-consumer (DTC). In wholesale, the company sells products in bulk to third-party retailers and di...
Levi Strauss & Co Earnings Call Summary
Earnings Call Date:Jul 08, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 07, 2026
Earnings Call Sentiment Positive
The call presented a broad set of positive execution outcomes: solid organic revenue growth (6%), strong DTC and e-commerce expansion, margin expansion (gross margin +10 bps to 62.7%, adjusted EBIT margin +70 bps to 9%), robust free cash flow (+~80% to $231M), and raised full-year revenue and EPS guidance. Management acknowledged and is actively managing near-term headwinds—tariff uncertainty, FX impacts, and some distribution transition timing issues in the U.S. and Europe—but framed these as manageable given operational improvements (inventory down 7%, Europe DC benefits, ERP progress) and strong consumer demand across categories (women’s +11%, Asia +12%). Overall, positive momentum and upgraded guidance outweigh the transitory challenges highlighted.Positive Updates
Top-Line Growth
Reported net revenues increased 8% in Q2 and organic net revenues rose 6% year-over-year; company raised full-year reported revenue guidance to +7.0%–7.5% and organic guidance to +5.5%–6.0%.
Negative Updates
Tariff Uncertainty and Headwinds
Tariffs remain an ongoing headwind; company is modeling incremental U.S. tariffs on imports from China at elevated rates (guidance assumes 30% for China and 20% for rest-of-world) and is not assuming potential tariff refunds (~$80 million) in guidance, creating continued P&L uncertainty.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line Growth
Reported net revenues increased 8% in Q2 and organic net revenues rose 6% year-over-year; company raised full-year reported revenue guidance to +7.0%–7.5% and organic guidance to +5.5%–6.0%.
Read all positive updates
Company Guidance
Levi’s raised its full‑year FY26 outlook, now expecting reported net revenues up 7.0%–7.5% (organic +5.5%–6.0%), with foreign exchange a ~150‑basis‑point tailwind (vs prior 100‑bp), gross margin to expand ~10 bps, and adjusted EBIT margin of ~12%; adjusted diluted EPS was raised $0.04 to about $1.46–$1.52. For Q3 the company expects reported and organic net revenues +4%–5%, gross margin around 61.8% (≈+10 bps vs prior despite a ~70‑bp FX headwind), adjusted EBIT margin ≈11.9% (≈10‑bp leverage) and adjusted diluted EPS ~$0.34–$0.36 (including a $0.02–$0.03 headwind from higher tax/FX). Guidance assumes incremental tariffs (China 30%, rest of world 20%) and excludes any benefit from potential tariff refunds (~$80M); Levi’s also plans 50–60 net new store openings (weighted to H2), expects to end the year with adjusted EBIT margin up ~60 bps, reiterated a longer‑term path to $10B revenue and 15% operating margin, and committed to returning 55%–65% of free cash flow while raising the Q3 dividend to $0.16 per share.Levi Strauss & Co Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.61B | 6.28B | 6.36B | 6.18B | 6.17B | 5.76B |
| Gross Profit | 4.08B | 3.88B | 3.82B | 3.52B | 3.55B | 3.35B |
| EBITDA | 906.60M | 888.90M | 454.00M | 476.40M | 834.20M | 796.30M |
| Net Income | 639.20M | 578.10M | 210.60M | 249.60M | 569.10M | 553.54M |
Balance Sheet | ||||||
| Total Assets | 6.63B | 6.85B | 6.38B | 6.05B | 6.04B | 5.90B |
| Cash, Cash Equivalents and Short-Term Investments | 977.80M | 848.80M | 690.00M | 398.80M | 500.20M | 901.82M |
| Total Debt | 2.30B | 2.31B | 2.21B | 2.18B | 2.09B | 2.24B |
| Total Liabilities | 4.36B | 4.57B | 4.41B | 4.01B | 4.13B | 4.23B |
| Stockholders Equity | 2.27B | 2.28B | 1.97B | 2.05B | 1.90B | 1.67B |
Cash Flow | ||||||
| Free Cash Flow | 575.40M | 324.30M | 670.90M | 121.90M | -39.00M | 570.40M |
| Operating Cash Flow | 790.00M | 545.70M | 898.40M | 435.50M | 228.10M | 737.30M |
| Investing Cash Flow | 9.50M | -68.70M | -281.10M | -240.70M | -235.70M | -571.80M |
| Financing Cash Flow | -604.80M | -416.30M | -319.30M | -214.10M | -365.40M | -840.90M |
Levi Strauss & Co Technical Analysis
Positive
22.90
Price Trends
22.99
Positive
21.74
Positive
21.49
Positive
Market Momentum
0.49
Positive
57.97
Neutral
55.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LEVI, the sentiment is Positive. The current price of 22.9 is below the 20-day moving average (MA) of 24.04, below the 50-day MA of 22.99, and above the 200-day MA of 21.49, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 57.97 is Neutral, neither overbought nor oversold. The STOCH value of 55.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LEVI.
Levi Strauss & Co Risk Analysis
Levi Strauss & Co disclosed 48 risk factors in its most recent earnings report. Levi Strauss & Co reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Levi Strauss & Co Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $9.37B | 17.67 | 28.33% | 2.58% | 2.61% | 30.39% | |
70 Outperform | $3.20B | 19.88 | 10.26% | 2.18% | 0.54% | -19.72% | |
69 Neutral | $4.66B | 16.90 | 50.10% | 3.36% | 20.78% | 20.89% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $3.49B | 22.73 | 3.25% | 0.22% | 3.54% | -55.30% | |
52 Neutral | $6.29B | 24.65 | 15.92% | 1.95% | -0.72% | ― |
* Consumer Cyclical Sector Average
LEVI
Levi Strauss & Co
24.37
5.47
28.93%
COLM
Columbia Sportswear
62.63
0.80
1.29%
PVH
PVH
75.66
3.20
4.42%
VFC
VF
16.02
3.82
31.37%
KTB
Kontoor Brands
84.34
17.03
25.30%
Levi Strauss & Co Corporate Events
Executive/Board Changes
Levi Strauss Announces Board Resignation and Size Reduction
Neutral
Jun 15, 2026
On June 10, 2026, Levi Strauss Co. director Elliott Rodgers tendered his resignation from the board, effective June 15, 2026, following his appointment as an executive officer at Kohl’s Corporation. The company stated that his departure was...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Levi Strauss Updates Bylaws, Tightens Corporate Governance Rules
Neutral
Apr 27, 2026
On April 23, 2026, Levi Strauss Co.’s board approved amendments to the company’s bylaws that took effect the same day, refining rules for shareholder-submitted director nominations and other business proposals, including updated discl...
Executive/Board ChangesShareholder Meetings
Levi Strauss Shareholders Reelect Directors and Approve Executive Pay
Positive
Apr 27, 2026
On April 22, 2026, Levi Strauss Co. held its 2026 Annual Meeting of Shareholders, where investors elected three Class I directors—Jill Beraud, Artemis Patrick, and Elliott Rodgers—to serve on the board until the 2029 annual meeting. S...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.